The government has prepared a plan to eliminate Pakistan’s gas sector circular debt over the next six years.
The total circular debt in the gas sector currently stands at Rs3,180 billion. Authorities aim to settle Rs1,700 billion immediately.
Of this, Rs1,400 billion relates to non-recovery, line losses, and tariff differentials. The remaining Rs300 billion covers taxes and interest.
The plan proposes increasing the Petroleum Development Levy (PDL) on petroleum products by an additional Rs5 per unit.
Officials said the extra Rs5 PDL could generate around Rs550 billion. Dividends from gas companies would add nearly Rs700 billion.
Additionally, reducing LNG cargo imports under the plan is expected to save approximately Rs500 billion for the energy sector.
Approval for the circular debt elimination plan will be sought from the Prime Minister’s Office and the Ministry of Finance.