SSGC clarification on ‘Financial crisis’

Karachi

This is with reference to the news item that appeared in various sections of the press with regards to the statement of Masood Naqi, President of Korangi Association of Trade and Industry (KATI) on January 26, 2017.
At the outset, it must be reiterated that SSGC places significant importance to its industrial customers since they play a key role in the industrialization of the country. We admire the concern Mr. Naqi has shown towards the state of SSGC’s financial affairs but do not share his viewpoint that the Company is on the verge of collapse.
SSGC management is making extensive efforts to ensure that the Company steers itself back to profitability. In fact, the Company suffered serious cash flow issues due to the dismissal of a Court Stay related to UFG benchmark and other issues available with the Company for the last five years which resulted in the creation of significant Gas Development Surcharge payable to the Government of Pakistan.
The Company, nonetheless is optimistic about a positive turnaround since its management and staff are taking extensive efforts to control the menace of Unaccounted-for-Gas or line losses that has impacted its financial bottom-line, through initiatives that include rehabilitation of pipeline network, gas leak rectification, replacement of defective meters and regular crackdown on gas theft across the franchise areas of Sindh and Balochistan.
In addition, the Company has been dedicatedly pursuing the RLNG Pipeline Transmission Project which will not only increase its capacity but also the asset base.
The management remains confident that the implementation of important transmission and distribution projects such as RLNG and other schemes will bridge the demand-supply gap and will provide much needed relief to all the customers, as had been the demand of various trade associations.—PR

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