Ministry declares financial systems of PSO, Sui Southern ineffective

Author: agenices

The Ministry of Finance has declared the financial systems of Pakistan State Oil (PSO), Pakistan Petroleum Limited (PPL), Oil and Gas Development Company Limited (OGDCL), Sui Southern Gas Company (SSGC), and Sui Northern Gas Pipelines Limited (SNGPL) ineffective and outdated.

The ministry has raised concerns over the financial management of the oil and gas sector. According to sources within the ministry, the infrastructure of these oil and gas companies has become outdated and inefficient, posing significant challenges to all five entities.

Issues related to receivables for SNGPL and SSGC have weakened their financial positions, increasing their reliance on government financial support. Circular debt in the energy sector has exacerbated cash flow problems, and mounting unpaid dues have further strained liquidity.

The ministry stated that the growing liabilities have adversely affected the economic stability of these companies, increasing their dependence on government support. Outdated technology has resulted in lower production and higher operational costs.

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