Sui Northern Gas Pipelines Limited (SNGPL) is facing a severe cash crunch as unpaid bills from the power sector pile up to over Rs76.5 billion, according to figures shared with Business Recorder.
More than two-thirds of the outstanding amount—about Rs50.4 billion—is owed by power plants run by the Water and Power Development Authority (WAPDA). Guddu Power alone accounts for nearly Rs30 billion, followed by Nandipur with Rs16.6 billion. Other WAPDA-run facilities in Muzaffargarh, Faisalabad, and Shahdra also contribute to the debt.
A significant portion of the dues includes Rs18.1 billion in disputed gas charges and Rs31.46 billion in late payment surcharges—costs that continue to swell as delays drag on.
Private power producers are also deep in arrears. Liberty Power tops the list with Rs16.4 billion outstanding, while Orient Power and Engro Energy owe Rs1.44 billion and Rs424 million, respectively. Government-owned companies such as QATPL and NPPMCL add another Rs3.78 billion to the ledger.
Industry sources say the debt spiral stems from inadequate fund releases by the Central Power Purchasing Agency-Guarantee (CPPA-G) to the power sector. With power companies starved of cash, payments to SNGPL have slowed to a trickle.
SNGPL has urged CPPA-G to fast-track disbursements so that power producers can clear their gas bills. Without such action, the company warns, its ability to honor supply contracts with upstream gas providers could be at risk—raising the possibility of supply disruptions down the line.
