Pakistan’s circular debt in the natural gas sector rose to PKR 3.607 trillion by the end of March 2026, with late payment surcharges nearly matching the principal outstanding amount, according to an official government document.
The document showed the principal circular debt stood at PKR 1.884 trillion, while late payment surcharges (LPS) reached PKR 1.723 trillion, equivalent to 91.46% of the principal. The figures underscore the growing financial burden caused by delayed payments across the gas supply chain.
Outstanding tariff differential claims totaled PKR 1.481 trillion, making them the largest component of the principal circular debt.
The document also showed that power sector companies owed PKR 132 billion to gas utilities, while outstanding sales tax and income tax receivables amounted to PKR 216 billion.
In addition, PKR 56 billion in payments remained tied up in ongoing litigation.
The document further showed that gas utilities owed a combined PKR 3.448 trillion to Pakistan LNG Ltd. (PLL), Pakistan State Oil (PSO) and upstream exploration and production companies.
Of that amount, principal liabilities totaled PKR 2 trillion, while late payment surcharges reached PKR 1.448 trillion because of delayed settlements.
Separately, the document said Pakistan Steel Mills owed PKR 99 billion to Sui Southern Gas Company (SSGC) in unpaid gas bills.
The figures highlight the persistent liquidity challenges facing Pakistan’s gas sector, where delayed recoveries, tariff-related receivables and mounting financing costs continue to drive up circular debt despite repeated government efforts to contain it.
