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Govt denies 24-hour gas supply to consumers as reserves dry up

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2 years ago

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  • “Gas loadshedding will end during sehri and iftar,” minister says.
  • “We cannot provide gas 24 hours as our reserves have dropped.”
  • “The gas bill of the rich and poor has been separated,” he says.

KARACHI: Minister of State for Petroleum Musadik Malik said Wednesday that the masses cannot get gas 24/7, attributing a drop in the commodity’s reserves as a major reason.

Pakistan is highly reliant on natural gas for energy, and with rising demand and insufficient supply, loadshedding has become a daily occurrence in many areas of the nation.

This scenario worsens during Ramadan when Pakistanis use more gas for cooking and other reasons, especially during sehri and iftar timings.

But the minister, in conversation with journalists in Karachi, without giving an exact time, said the gas loadshedding would end during sehri and iftar. “We cannot provide gas 24 hours as our reserves have dropped.”

The issue of gas starvation in Karachi caught Prime Minister Shehbaz Sharif’s attention recently, and he directed relevant officials to ensure an uninterrupted supply of the commodity.

He said the process of supply of gas should be supervised and no negligence should be tolerated.

Owing to the widening gap between gas supply and demand, the Sui Southern Gas Company (SSGC) last week announced its decision to suspend supplies to captive power plants and industries.

The gas utility said that the decision has been taken considering the low supply of gas. It stated that due to a reduction in supply, the volume of gas in pipelines has decreased.

In response, the Karachi Chamber of Commerce and Industry (KCCI) called for immediate government action over the shortage of gas supply to Karachi industries, saying the industries could not function without gas and would be forced to halt production.

“It’s highly unfair to have such an attitude towards Karachi’s business community which, despite facing so many odds and challenges, contributes around 54% in terms of exports and more than 68% in terms of revenue,” KCCI president Muhammad Tariq Yousuf said.

Malik, while talking to journalists, said his visit to Karachi was based on resolving the gas supply issues that the people are facing and urged them to ensure payment of their utility bills.

“The gas bill of the rich and poor has been separated; rich people will have to pay more now,” the minister of state for petroleum said.

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ADB authorizes a $200 million loan for Pakistan to upgrade its power distribution system.

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A $200 million loan from the Asian Development Bank (ADB) has been authorized to update Pakistan’s power distribution system.

The project intends to improve data management and communication networks and deploy more than 300,000 smart metering equipment.

The project will involve improvements to voltage levels at SEPCO grid stations and monitoring systems for 15,500 transformers. LESCO plans to build or upgrade 25 grid stations with cutting-edge machinery. The initiative will reinforce income security, enhance demand management, and lower power losses, all of which will help to address

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Bulls recover from a sharp fall.

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The benchmark KSE-100 Index hovered at 111,005 points after rising more than 2000 points against the previous closing of 108,896 points, indicating that bullish momentum has returned to the Pakistan Stock Exchange (PSX) a day after a sharp bearish rally.

For the past month or so, the proverbial bulls have been galloping thanks to the cash infusion from the International Monetary Fund’s loan release and more discussions on climate funding.

The impending SBP policy rate-cutting meeting is another factor contributing to the current market mood. On December 16, the Central Bank’s Monetary Policy Committee is anticipated to convene.

Market analysts claim that the government’s decision to form a committee to address the outstanding problem of the Advances to Deposit Ratio (ADR) in the banking industry was the cause of the market’s abrupt collapse. However, the trend didn’t last long.

Following an extraordinary run of gains over the past month or so, the Pakistan Stock Exchange (PSX) reached a historic high of 100,000 points on November 30.

The KSE-100 index achieved one milestone after another in November 2024 amid recurring reports of economic stability, mainly due to the recent loan disbursement by the IMF.

The reassuring agreement with the international lender and Pakistan’s economic czar Muhammad Aurangzeb’s subsequent announcement ruling out a mini-budget boosted investor confidence in recent times.

The State Bank of Pakistan lowered the policy rate by 250 basis points to 15% on November 5.

Inflation dropped more quickly than anticipated and approached its medium-term target range in October, according to the SBP’s relevant committee.

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PSX 100-index reaches an unprecedented peak, exceeding 111,000 points.

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The Pakistan Stock Exchange (PSX) reached the significant milestone of 111,000 points shortly after today’s market opening.

The KSE-100 Index ascended by more than 1,000 points in the initial five minutes of trade, achieving a notable increase of 1,044 points to attain 111,014 points.

The increase indicates heightened investor confidence and a robust market sentiment.

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