Following is the text of press note issued by
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The incumbent Government at the outset faced a tremendous challenge in the form of financial deficit of over
The Prime Minister of
The Spokesperson for Petroleum Division says that the division has actively engaged with all key stakeholders; the OGRA, the Board of Directors (BoD) and Managements of the both Sui Companies to come-up with out of the box solutions to reduce the burden of high gas prices on the most vulnerable section of society. Both Sui Companies are incurring gas losses (UFG) in double digit which far exceeds the best international practices. One percent UFG loss of both Sui Companies in monetary terms exceeds
Hence the Government is asking Sui Companies to curtail UFG losses or reduce allowed UFG to ensure efficient use of gas. The Petroleum Division has initiated a process of consultation to consider reduction in allowable UFG benchmarks along with reduction in return on assets and rationalization of transmission and distribution costs to create some fiscal space for the Companies instead of simply resorting to increase in tariffs.
The Spokesperson adds that the Petroleum Division is working to instill new thinking in the way the Companies' business is being run. The Petroleum Division is taking necessary decisions to reinforce accountable corporate governance which discourages rent seeking and corruption and promotes value creation resulting in improved service delivery for the end consumers.
For more information, contact:Principal Information Officer,
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