{
  "id": 1885061,
  "title": "Govt Unveils Plan To Clear Rs. 1.49 Trillion Gas Circular Debt",
  "url": "https://urgent.news/2026/08/19/govt-unveils-plan-to-clear-rs-1-49-trillion-gas-circular-debt",
  "topic": "tech",
  "section": "Tech",
  "published": "2026-08-19T07:06:16.000Z",
  "source": {
    "name": "ProPakistani",
    "slug": "propakistani",
    "url": "https://propakistani.pk/2026/08/19/govt-unveils-plan-to-clear-rs-1-49-trillion-gas-circular-debt/"
  },
  "original_language": "en",
  "account": "The Pakistani government has unveiled a plan to resolve Rs. 1.49 trillion in gas sector circular debt, as authorities work to manage growing liabilities in the energy industry. The Petroleum Division presented the settlement strategy to the Cabinet Committee on Energy, attended by Prime Minister Shehbaz Sharif. The circular debt within the gas sector includes Rs. 1.8 trillion in principal liabilities and Rs. 1.7 trillion in overdue payment surcharges. The proposed solution involves Rs. 540 billion in additional dividends from Oil and Gas Development Company, Pakistan Petroleum Limited, and Government Holdings Private Limited. An additional Rs. 270 billion would be collected via a Rs. 5 per liter petroleum development levy, based on annual sales of approximately 18 billion liters of petroleum products. The government aims to generate Rs. 590 billion through reduced liquefied natural gas (LNG) cargo needs and costs saved from transitioning from LNG to domestic natural gas. Another Rs. 80 billion is anticipated through LNG price recovery and Rs. 15 billion from take or pay claims. Factors contributing to the circular debt include tariff disparities, unpaid receivables, and policy-related expenses. Tariff differentials account for Rs. 1.4 trillion, while power sector receivables total Rs. 123 billion, sales and income tax receivables amount to Rs. 211 billion, and litigation costs reach Rs. 58 billion. The debt has been exacerbated by costly LNG supplies. Gas utilities redirected expensive imported LNG to domestic consumers, while disruptions to LNG shipments under Pakistan's agreement with Qatar led to the procurement of spot cargoes at substantially higher prices. Spot LNG prices soared to $19 per million British thermal units, compared to $12 to $13 for conventional Qatar LNG shipments. These expensive supplies were directed to power plants, with the expenses ultimately passed on to electricity users. The circular debt has also impacted exploration firms like OGDCL and PPL, as Sui gas companies amassed unpaid bills for supplied gas.",
  "summary": "The government has unveiled a plan to settle Rs. 1.49 trillion of Pakistan’s Rs. 3.6 trillion gas sector circular debt … Read More The post Govt Unveils Plan To Clear Rs. 1.49 Trillion Gas Circular Debt appeared first on ProPakistani .",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}