ISLAMABAD: Sui Northern Gas Pipelines Limited (SNGPL) is facing a serious liquidity crisis due to outstanding receivables of nearly Rs174 billion from the power sector, largely because of delays in fund releases by the Central Power Purchasing Agency-Guaranteed (CPPA-G), official sources said.
According to SNGPL, total receivables from the power sector stand at Rs173.654 billion, creating significant financial pressure on the gas utility and affecting its ability to meet payment obligations to upstream gas suppliers.
Among government-owned power plants, the largest outstanding amounts include Rs35.24 billion against Guddu Power, Rs21.30 billion against Nandipur Power, Rs2.33 billion against GTPS Faisalabad, and Rs1.48 billion against TPS Muzaffargarh. Smaller dues are also pending against GTPS Shahdara, SPS Faisalabad, NGPS Multan, and rented power plants at Bhikki and Sharaqpur.
Total outstanding receivables from government power plants amount to Rs60.989 billion, including Rs21.497 billion in undisputed gas charges, Rs4.465 billion in RLNG tariff actualisation charges, Rs542 million in disputed gas charges, and Rs34.173 billion in late payment surcharge (LPS).
SNGPL stated that cumulative gas charges, including LPS, reached Rs60.173 billion, while the addition of Gas Infrastructure Development Cess (GIDC) liabilities raised the total outstanding amount to nearly Rs61 billion.
Outstanding receivables from independent power producers (IPPs) stand at Rs36.969 billion. Major defaulters include Liberty Power (Rs20.84 billion), KAPCO (Rs5.12 billion), Orient Power (Rs3.19 billion), Sapphire Power (Rs2.33 billion), Saif Power (Rs2.34 billion) and Halmore Power (Rs1.33 billion). These figures also include disputed charges, LPS and GIDC-related liabilities.
In addition, government-owned power projects account for another Rs75.696 billion in unpaid dues, including Rs32.228 billion against QATPL, Rs23.737 billion against Balloki Power, Rs18.379 billion against Haveli Bahadur Shah (HBS) plant, and Rs1.352 billion against PTPL.
The overall outstanding amount also includes Rs277 million owed by disconnected WAPDA rented power plants at Bhikki and Sharaqpur, along with Rs88 million due from the disconnected IPP Davis Energen.
SNGPL has urged the Petroleum Division to take up the matter with the Power Division to ensure the early release of funds to WAPDA, IPPs and government-owned power plants so they can settle their liabilities with the gas utility.
The company warned that prolonged delays in payments have severely affected its financial position, limiting its ability to fulfil commitments to upstream gas suppliers and maintain smooth operations.
SNGPL General Manager (Recovery) cautioned that if outstanding dues are not cleared promptly, the company may be compelled to exercise its contractual rights for recovery of payments to avoid further financial stress.
The growing receivables highlight the persistent circular debt challenges in Pakistan’s energy sector, where delayed payments across the power and gas supply chain continue to strain the financial health of state-owned utilities.
Story By Mushtaq Ghumman
