Gas, power sector dues strain energy supply chain

Published Updated
A file photo of a gas field. — Dawn/file
A file photo of a gas field. — Dawn/file

KARACHI: Unsettled receivables across gas and power sectors continue to severely strain the operational liquidity of the country’s main energy supplier, prompting fresh warnings about the stability of the national energy supply chain.

Independent industry data shows that Sui Northern Gas Pipelines Limited (SNGPL) carries the largest burden of overdue liabilities, owing Rs536 billion as of July 23 this year. This includes Rs274bn in principal dues and Rs253bn in late payment surcharges.

Sources said recoveries from SNGPL continue to lag behind the pace of imported LNG shipments, resulting in a persistent cash flow shortfall.

At the same time, power sector receivables have climbed to Rs168bn, with a substantial portion remaining unpaid since FY19, they said.

The mounting unpaid dues have created an operational bottleneck affecting the entire fuel supply chain, from local refineries to foreign fuel shipments.

Delayed payments have forced heavy reliance on short-term bank financing, increasing debt-servicing costs and exhausting available credit lines. The resulting cash constraints have directly impaired the timely settlement of obligations to international suppliers and domestic refiners.

Industry analysts warned that unless the relevant authorities implement a structured settlement plan, the liquidity crunch could jeopardise fuel procurement schedules nationwide.

Published in Dawn, July 26th, 2026

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