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Government looking to achieve zero ‘Unaccounted for Gas’ losses by end of tenure: Musadik Malik – MarketsNews WAALI

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Minister of State for Petroleum Dr Musadik Malik said on Monday that Unaccounted Gas (UFG) losses from gas companies, including Sui Southern Gas Company (SSGC), would come to zero by the end of the current government’s tenure.

“UFG’s losses will come to zero by the end of our government tenure,” said Malik, while addressing a seminar titled ‘National Policy Dialogue: Positioning for Growth’ in Karachi.

Referring to the Russian oil deal, Malik said the current government was able to ink a deal with the energy giant for cheap crude in a span of 40 days.

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“A third crude will come to Pakistan at cheaper rates. From start to finish we were able to do it in 40 days,” he said.

Last month, Malik had said that under the Pak-Russia agreement, oil and gas would start reaching Pakistan this year, which would help provide relief to people.

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Low-income segment to remain largely unaffected by gas tariff hike: Musadik Malik

To a query, the federal minister said that the current government in its current tenure separates the gas tariff for the rich and the poor. “We have separated the gas tariff, one for the rich and one for the poor, in order to promote inclusiveness and fair play.”

He added that the revolving debt of the wellhead had been reduced to nothing. “LNG’s revolving debt remains, which will be reduced to zero by the end of our tenure, the work is ongoing,” he said.

“Moreover, electricity rates would come down from Rs26 per unit to Rs7-8 per unit, by the end of our government’s tenure,” he added.

The seminar was presented by K-Electric and co-hosted by Nutshell Conferences Group, in association with IMS Electric (Pvt) Ltd, Transfo Power Industries (Pvt) Ltd, Pakistan Cables, Pak Electron Ltd, and Alson’s Group.

“Except productivity, nothing can drive a country towards localization,” Malik said, adding that long-term productivity can only be achieved through human innovation and ingenuity.

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The federal minister said that export is the key performance indicator of localization.

“We need to develop a combination of industry, academia and the private sector to develop industrial clusters,” said Malik, while calling for a radical change in the country’s education system.

Citing the example of India, the federal minister said the neighboring country has a competitive advantage in its educational system, which is reflected in its industry.

“Furthermore, the government needs to create a level playing field, where competition can only take place on the basis of productivity and innovation,” said Malik.

The federal minister shared that Pakistan’s imports are $80 billion, while the exports remain low at $28 billion.

He said the increase in local industry energy prices leads to subsidizing imports. “When the production cost of the local industry is raised, this leads to subsidizing imports,” he said.

“So the issue is that there is no level playing field, the government should get the hell out of the industrial way, and let them compete. It must be a fierce competition.

“Only through the fierce competition would you get competitive advantage, and only through edge would you be able to create clusters, and only through clusters would you be able to export and only through exporting would you you can save Pakistan,” concluded Malik.


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