Project: “Sui Northern Gas Pipelines

Limited (SNGPL)”

Submitted to:
Sir Khurram Khan
Submitted by:
Sara Sarwar: 23100
Faria Noor: 22405
Nimra Zafar: 21827
 Acknowledgement

First of all we would like to thank Allah Almighty who supported us to do this task. Then we would like to
thank Sir Khurram Khan who gave us opportunity to increase our knowledge through this project. We would
like to thank Sir Shafiq for his guidance. Then we would like to give special thanks to Mr. Rehmat Ullah
Khan who is the Executive Officer Customer Service at Sui Northern Gas Pipelines Limited SNGPL’s sub
area office located in Westridge, Rawalpindi, who made our visit to SNGPL’s office possible.
Table of Contents

Acknowledgement..................................................................................................................2
Executive Summary...............................................................................................................4
Introduction............................................................................................................................5
How Was SNGPL Created?..................................................................................................6
Vision & Mission....................................................................................................................7
Goals and Objectives.............................................................................................................8
Organizational Structure....................................................................................................12
Services......................................................................................Error! Bookmark not defined.
Hierarchy and its Operations.............................................................................................13
Services Provided by SNGPL.............................................................................................19
Public Opinions....................................................................................................................21
Recommendations................................................................................................................23
A. Recommendations for SNGPL...............................................................Error! Bookmark not defined.
B. Recommendations for Consumers:................................................................................................24
C. Recommendations to Government:...............................................................................................26
Conclusion............................................................................................................................29
 Executive Summary

This report is about Pakistan’s largest natural gas distributer company. We have discussed about its history,
vision, mission, goals, hierarchy and its operations. We also asked from consumers about the quality of
services they are providing. We have included their opinions and also suggested some suggestions for the
company, consumers and the government that how they all can cope with this energy crisis. In conclusion we
discussed about the main issue of the energy crisis and should it be tackled.
 Introduction

Sui Northern Gas Pipelines Limited (SNGPL) was started as a private limited company in 1963 and
converted into public limited company in January 1964 under the Companies Act 1913, now the Companies
Act 2017. SNGPL is listed on the Pakistan Stock Exchange (PSX).SNGPL is the largest gas utility Company
of Pakistan with its Transmission and Distribution network in Punjab, Khyber Pakhtunkhuwa, Azad Kashmir
and Islamabad. Its head office is in Lahore, Pakistan.

Sui Northern Gas Private Limited (SNGPL) is the largest integrated gas company which is serving more than
6.5 million consumers in North Central Pakistan through its extensive network. Its main purpose is to
facilitate the consumers by providing them with Gas and to increase and expand gas distribution network
throughout the country by increasing profitability and customer satisfaction by following the laws and
policies developed by OGRA.

The Company has over 50 years of experience in operation and maintenance of high-pressure gas
transmission and distribution systems. It has also expanded its activities to undertake the planning, designing
and construction of pipelines, both for itself and other organizations. SNGPL transmission system extends
from Sui in Balochistan to Peshawar in Khyber Pakhtunkhuwa (KPK) which comprises over 8900 KM of
Transmission System. The distribution activities covers 4458 main towns and villages in Punjab & Khyber
Pakhtunkhuwa (KPK) which are organized through 16 regional offices. Its consumers includes Commercial,
Domestic and Industries.
 How Was SNGPL Created?

Sui Gas Field is the largest Natural Gas field in Pakistan which is located near Sui in Balochistan Province.
The Gas Field was discovered in 1952 and production started in 1955. The operator of the field is Pakistan
Petroleum Limited. After the production of Gas, the main concern was the distribution and transmission of
this natural gas to the consumers. For this purpose, two companies was established, Sui Southern Gas
Limited (SSGC) and Sui Northern Gas Pipelines Limited.

SSGC was established in 1955, and engaged in business of transmission and distribution of natural gas in
southern part of Pakistan- mainly in Sindh and Balochistan. Then in 1963, SNGPL was established to expand
the network of transmission and distribution to northern part of Pakistan- mainly Punjab, KPK, Azad
Kashmir and Islamabad. SNGPL comes under OIL and GAS Industry. OGDCL sales oil and gas to OGRA
then SNGPL purchases Natural Gas from OGRA.
 Vision & Mission

 Vision:
“To be the leading integrated natural gas provider in the region seeking to improve the
quality of life of our customers and achieve maximum benefit by for our stakeholders by
providing an uninterrupted and environment friendly energy resource”

 Mission:
“A commitment to deliver natural gas to all doorsteps in our chosen areas through
continuous expansion of our network, by optimally employing technological, human and
organizational resources, best practices and high ethical standards.”
 Goals and Objectives

1) Enhancement of System Capacity: The objective of SNGPL is to improve internal controls and
risk management for achieving maximum operational efficiency of the system.

2) Expansion and Transmission and Distribution Network to Increase Sales: To increase

available gas sales by developing and expanding the infrastructure by entering new areas.

3) Reduction in Unaccounted for Gas (UFG) Losses: To decrease Unaccounted for Gas losses
which are caused by Gas leakage, illegal gas connections, system fault and gas theft.

4) Improvement in Profitability: To improve financial discipline by doing well judged investment

and borrowing for the purpose of economic development

5) Improvement in Customer Service: To provide quality services for customer satisfaction by

implementing performance and service standards developed by OGRA.

6) Adoption of Information Technology: To adopt Information Technology for effective

management and to achieve business objectives

7) Human Resource Department: To emphasize on Human Resource Department for quality work
and Customer Satisfaction.

8) Health, Safety and Environment: To create awareness and enforce commitment to Health,
Safety and Environment policies and standards
 Statistical data

 Its operations started by selling an average of 47 MMCFD(Million Cubic Feet per Day) gas in two
regions viz. Multan and Rawalpindi, serving a total number of 67 consumers.

 SNGPL transmission system extends from Sui in Baluchistan to Peshawar (KPK) comprising over
8,900 KM of Transmission System

 The distribution activities covering 4,458 main towns and villages.

 Distribution system consists of 122,325 KM of pipeline. SNGPL has 16 Regional Offices, 34 Sub-
regional Offices, 88 Customer Services Centers and 178 Complaint Centers, across Punjab, Khyber
Pakhtunkhwa, Islamabad Capital Territory and Azad Jammu & Kashmir to receive and solve the
complaints

Financial Information:

 Sui Northern Company Ltd (SNGP) a profit of Rs. 11.21 billion, showing increase in profit from Rs
8.61 billion in 2017.

 The overall gas sales increased to Rs 446 billion in 2018, from Rs 319 billion in 2017. The cost of
sales also increased to Rs 476 billion from Rs 326 billion.

 Overall the expenses were Rs 14.87 billion in 2018 as compared with Rs 12.08 billion in 2017.

 The reason for higher profits were adjustment of Unaccounted for Gas losses. A higher
capitalization of fixed assets during the period was also a key reason in improving profits.
 ASSETS

Property, plant and equipment, Intangible assets, Deferred taxation, Investments, Long term loans, Stores
and spare parts, Stock-in-trade, Trade debts, Loans and advances, Income tax receivable, Cash and bank
balances

Shares

 Government holds 31.68% shares. Pakistan Industrial Development Corporation (PVT) LTD holds
6.02% shares.

 Other 62.3% shareholders include Banks, Development Financial Institutions, Insurance Companies,
Public Sector Companies and Corporations, Directors etc.

Biggest Strength of SNGPL:

 The Strength of SNGPL is its vast Transmission and Distribution Systems

Biggest Challenge/Weaknesses:

SNGPL is currently facing 2 challenges i.e. Circular debt and UFG losses

1- Circular Debt:

 Due to outstanding payments of receivables and payables, SNGPL is in circular debt.

 The ever-increasing receivables of the SNGPL and the difference between the purchase price and the
sale price are the reasons for increase in circular debts.
  According to annual report of 2018, it has total receivables of Rs. 222 billion. The biggest factor is
Differential marginal recoverable which is Rs 122 billion

 Due to court cases, significant receivable amounts of the company are stuck.

 According to FY18 annual report, SNGPL has total liabilities of Rs. 280 billion. It has Total
payables of Rs. 233 billion

 SNGPL has to pay Pakistan LNG Limited of Rs. 40 billion

 Has to pay Rs.12 billion to PSO against LNG supplied by them.

2- Unaccounted for Gas Losses (UFG Losses):

 The biggest issue of SNGPL is the financial loss faced by the company in respect of UFG

 Leakage is found to be the largest contributor (17%) of UFG following measurement error (2%) and
theft (2%).

Projects

 As per direction of Government of Pakistan, SNGPL has planned new 42”dia x 770 KM pipeline
project to build another 1200 MMCFD pipeline capacity in its franchise areas from Sawan to Lahore
for upcoming LNG terminals in the country.

 Work is well underway on a 12" dia x 25 Km transmission pipeline from Shahwali to Rojhan.

 To supply gas to various villages of NA 138, Kasur, an 8" dia x 7 Km transmission pipeline project
running smoothly and is expected to be completed well within the stipulated time period.

 Work on Iran Pakistan (IP) Gas Pipeline project is underway and it is hoped that SNGPL would be
able to get additional gas supply of 500 MMCFD in the years ahead.
Organizational Structure
 Hierarchy and its Operations

There are total of 28 departments in Sui Northern Gas Private Limited (SNGPL) which effectively manages
all the activities of the organization for the purpose of achieving organization’s goals and objectives. We
have discussed some of the departments especially those which have direct contact with our consumers or
which have direct impact on the consumers. The department of SNGPL are as follows:

1) Human Resource Development: The head of this department is the Senior General
Manager. Its main functions includes Planning, Organizing, Leading, and Controlling. Following are
the operations which are performed by the SNGPL’s HRM Department:

 It is the responsibility of the HRM department to stay updated with the new information,
skills and labour laws to effectively manage the company’s human resource

 To update company’s policies to enhance employee’s job satisfaction, development,

motivation and retention and to give incentives to employees

 It is the responsibility of the HRM to formulate and execute the HR policies effectively

 For the purpose of transparency and merit, the recruitment system is now based on third party
testing
  Performance is monitored by Performance Management System. HRM also focuses on Career
Development

 In-house trainings are provided for developing the human resource

 Assessment centers are developed annually to determine the competency of employees which
forms the basis for promotion

2) Finance Department: The head of this department is Chief Financial Officer. Its functions
includes planning, organizing, managing and accessing financial activities of the organization.
Finance department has further sub-departments. These include

 Billing: This department’s responsibility is timely delivery of accurate bills and their
recovery. This department has collaborated with banks to collect bills. And has upgraded
the technology for ensuring error-free billing.

 Accounts: This department is responsible for monitoring all cash inflows and outflows of
the company. Filling and dealing tax matters are also its functions.

 Regulatory Affairs: This department is responsible for preparing, filing and defense of all
tariff related petitions. It is also responsible for functions of vigilance and audit according
to the laws and performance standards of OGRA
3) Sales Department: The head of the department is the General Manager. It negotiates and
finalizes the gas sales & purchase with the gas producers, suppliers, intermediary parties and
corporate and retail consumers. Other operations of sales department includes the following

 Sales department maintains the statistical data with respect to its customers, volume of
gas sold, gas inputs, details of pipelines etc. it also publishes the company’s monthly
reports where by the statistics are shared with the shareholders.
 It also assesses and prepares feasibility reports for development schemes.
 It also prepares the projections and forecasts of demand for gas while advising
appropriate gas load management plans

4) Corrosion Control: The head of this department is the General Manager. It comprises of 35
Executives and 179 Subordinates working in 4 Transmission Sections and Thirteen Distribution
Regions. This department is proactive in protecting the underground company Transmission and
Distribution pipeline network, from attack of corrosion and rust by applying Cathodic Protection
Technique. Other operations of this department includes:

a. Design and Construction

 Front end engineering Design, installation and commissioning of Cathodic Protection

system for new lines
 In house fabrication of Air cooled Transformer Rectifier Units
 Fabrication of outer wrap as allied enamel coating for Transmission and distribution
network
 Laboratory testing of coating materials
 b. Monitoring and Maintenance:
 Surveys of old and new transmission and distribution lines for coating expansion and
direct examination
 Inspection of Cathodic Protection Stations
 Preventive and break down maintenance of TR Units and CP instruments

c. Underground Gas Leakage Detection: UFG team conducts Gas Leak Detection surveys
through Laser Base Detectors

d. Coat and Wrap Section: The corrosion control department is also responsible for coat and
wrap activities for recoating transmission and distribution network

5) UFG Control Department: UFG stands for Unaccounted for Gas. This department deals
with the possible control over the losses of Natural Gas, which are mainly caused by Leakages,
Under billing and Theft

i. Leakages: Leakages are caused when the pipe joints are damaged or there are holes on
pipe surface due to the pressure of sewerage pipes lying along or above them or when they
are corroded or eroded. Pipe replacements or electrical welding are done to overcome these
leakages.

ii. Under Billing: this type of error is caused by error in noting down the reading of meters,
due to un-awareness of meter readers or some technical error in mechanical counter of the
 meter. These loses can be minimized by arranging proper training programs for the meter
readers.

iii. Theft: This is the major and also an increasing cause of Gas losses in many regions of the
country. The common way of gas theft is tempering of meters. Some of the irregularities
through which a consumer can be suspected, these are:

 Miss match between the EVC (Electronic Volume Corrector) and mechanical
counter
 Running load of consumer is more than the reported load to the company
 Sealed wires of meters in a non-rigid of flexible state.

6) Metering Department: The head of this department is General Manager. This department
has Four Meter Shops located at Lahore, Multan, Islamabad and Faisalabad. These Meter Shops are
responsible for inspection, repair, calibration, maintenance and configuration of
Measurement/communication gadgets (i.e. meters, EVC’s and modems (GSM/GPRS) being installed
in distribution system. Main operations of this department is

 Receiving/Dispatch of Domestic Meters

 Flow Proving of Domestic Meters
 Inspection seals and checking of Domestic Meter internal parts
 Generation of MIRs Meter Inspection Reports
 Repairing of Domestic, Industrial and Commercial of meters etc.
 7) Distribution Department: This department is responsible for the safe, reliable and efficient
distribution of natural gas to its consumers through widespread pipeline network

 There are approximately 6.4 million domestic, 57,634 commercial and 5938
Industrial/CNG/Captive Power consumers

 The department has its own Development, Operation & Metering, Maintenance,
Customer Services and UFG-Control staff is available in each region, Sub-Regions,
Customer Services Centers and Complaint Centers to attend emergencies and
customer complaints.

Corporate Social Responsibility (CSR) at SNGPL

Being a responsible Company, SNGPL carries out multiple activities for enhancing the quality of life of the
community in which it operates. Every year a sizeable amount is spent to carry out schemes related to new
projects based on the following initiatives or for the ongoing projects. SNGPL has a focus on the following
initiatives:

1- Beautification / Renovations:

Beautification / Renovations of important roundabouts in the cities, roads and highways is taken care
of through this initiative. Some of the projects are:

 Fawara Chowk, Rawalpindi

 Roundabout between liberty market and Gaddafi Stadium Lahore.
2- Filtered water supply:
SNGPL has installed 25 Reserve Osmosis (RO) plants/water filtration plants for supply of drinkable
water for the community surrounding SNGPL offices and also in areas where there was water
scarcity

3- Health:
SNGPL’s contribution on health sector is also increasing as it supports blood donation campaign of
Fatimid Foundation and Sundus Foundation. SNGPL has motivated its employees for this nobel
cause and has arranged six camps at offices.

4- Relief Activities:
SNGPL has contributed for the earthquake and flood affected victims of Punjab, KPK and
Balochistan through generous donations.

Services Provided by SNGPL

 Construction of Transmission & Distribution Pipeline Networks

 Compressor Station Design / Planning & Installation
 Route / Site Feasibility Studies
 Project Planning & Permissions
 Preliminary Cost & Design Estimates
 Surveying
 Mapping
 Right of Way Acquisition
 Engineering & Design, Network Planning
 Station Automation & Control, SCADA
 Construction of Gas Pressure Reduction & Custody Transfer Meter Stations
 Pipeline/ Facility Design
 Pipeline Coating
 Construction Management
 Pipeline Integrity Management
 Corrosion Control Systems
 High Definition Surveying
 Code Compliance Reviews

CONSUMER SERVICES
 Introduction of helpline 1199 for registration of complaints

 Upgrading the skills of emergency attending teams with proper training, courtesy and prompt
attention to consumer’s complaints

 Payment in SNGPL’s offices

 Payment in Post offices

 Increase in Bank Branches

 Online Gas Complaints

 E- Commerce banking facilities
 Advance payment plan offering attractive discount

 Availability of gas bills on internet

 42 consumer service centers established to provide facilities like billing, operation and sales
 Public Opinions

Its main consumers are Domestic Consumers, Commercial Consumers and Industrialists. We asked general
public and industrialists about the services which were being provided to them by SNGPL. Most people
blamed the higher authorities about the irregularities but some people accepted that the consumers are also
responsible for the irregularities. We also had the opportunity to get opinion from the industries which are
highly dependent on Gas Supply. They also shared their valuable opinion

General Public and the Industries shown the Following Concerns

1) Low pressure of Gas: Domestic consumers are highly affected because of this issue. Especially
in winters, the pressure of gas gets very low. People face difficulty in cooking meals. This low
pressure is because of low temperature because in low temperatures, the gas molecules get condensed
in pipelines. Other factor is the use of illegal compressors by domestic consumers. These
compressors pump the limited available gas and supply it to the one using the compressor which
eventually decreases the gas pressure for other consumers present in the locality. These compressors
are also used by commercial and industrial consumers
2) Increase in Prices: This year, the prices for gas was increased to 200% for domestic consumers
and petroleum division has increased gas prices to 31% for other sectors such as fertilizers, power,
cement and commercial. These prices was increased by OGRA, third time in Imran Khan’s
Government just before going to IMF for loan agreement. Prime Minister Imran Khan also said that
Gas Sector/Gas Companies was losing Rs.50 Million because of Gas theft and mismanagement and
there was Rs.157 Million loan on these companies. If the prices was not increased, then these
companies would have been shut down
3) Use of Expensive LNG: shortage of gas caused gas companies to use alternative sources to
provide gas to facilitate its consumers. SNGPL gave its customers imported LNG to its domestic
consumers which is expensive as compared to natural gas. This shift was done to cover the growing
supply gap
4) Illegal Gas Connections and Gas Theft: SNGPL faced loss due to illegal gas connections
and gas theft. 10000 units of illegal connections were found in Karak area in 2015. SNGPL’s task
force and FIA conducted several raids and anti-theft operations. They removed these illegal
connections and arrested the culprits but this situation is still not in control. Earlier this year, SNGPL
faced Rs.22bn loss due to increase in UFG which is caused by combination of gas leakage, system
fault and gas theft
5) Shortage of Gas: The prices of gas was not increased in Pakistan for decade, Pakistan was not
generating enough revenue and then experienced a shortage of gas. This shortage of gas may shut
down the industries for months causing unemployment of millions of labors. It also decreased the
electricity production to 3000MW as more than 70% electricity is produced from thermal energy.
Shortage of gas also affects the exports because manufacturing industries are dependent on gas for
manufacturing products. Pakistan’s exports has also decreased from $7 billion to $4.5 billion. CNG
stations remain closed for uncertain time due to shortage of gas. Other factor is increase in
consumption, as the population is increasing so the demand is also increasing day by day which
6) Increase in CNG Stations: OGRA once suggested ban on CNG stations as it was creating
shortage of gas, low gas pressures and also it has increased accidents due to gas leakage and
unauthorized conversion of CNG. Increase in CNG stations has encouraged the public transporters to
install more than one gas cylinders in vehicles which increased threat for safety
7) Poor distribution of energy: In many areas in Pakistan, the energy resources are not fairly
distributed. Natural gas or imported LNG is being provided to those areas where there is no shortage
of gas. And those rural areas of Pakistan which are facing excessive shortages of gas are left behind.
8) Less usage, High Bills: This problem was also reported. This problem is caused due to leakages
and as well as due to error in noting down the reading by meter readers.

Recommendations
After going through the Industry’s operations, services and opinions of consumers, we have recommended
possible solutions which can atleast control the present energy crisis

A. Recommendations for SNGPL

Most of the problems related to their services have been discussed above and also gave recommendations.
Following are the recommendations to SNGPL to improve their services.

1. Recommendations to reduce Circular Debt:

 Check the financial health of creditors, whether they are capable of paying the money

 Have an automated email system set up to automatically send reminders to your creditors for
un-paid accounts.

 Lower the marginal differences. OGRA can increase the sale prices to lower this

Recommendations to Reduce UFG Losses:

 More than 17% gas is lost in transmission and distribution process due to lack of pipeline
maintenance.

 Doing surveys, raids and taking strict fearless actions by UFG task force against influential
people can solve the issue of gas theft

 Rehabilitation of the pipelines network can improve its services

 Gas leakage detectors should be used for early detection of gas leakages.

2. Should give Trainings to Task Forces:

One more issue was highlighted related to UFG team and that was Under Billing, this type of loss is caused
by error in noting down the reading of meters, due to un-awareness of meter readers or some
 3. Should explore Alternative Energies to meet demand: As demand for energy is increasing day by
day, the present reserves for resources are decreasing so companies should go for alternative
resources to meet the excessive demand.
4. Improve Monitoring Practices: Firstly, in some areas there were complaints about the UFG team
taking charges for their services. The services which SNGPL provide to its consumers related to
leakage repair and other repairs are free. They only take charges for changing meters. The task force
should also be monitored. Secondly, UFG teams are not very active to spot illegal activities unless
they are informed by consumers. They should be doing raids and surveys in different areas to spot
such activities. And then should punish the culprits.
5. Create Awareness for Energy Conservation: Companies should create awareness among people to
conserve this energy as it will benefit us in long-term. SNGPL should invest in advertisement
programs for creating awareness related to energy conservation as well as consumers should be given
awareness about reporting any illegal activity. In advertisement programs, the punishment should be
mentioned for those who are involved in gas theft all other illegal activities

B. Recommendations for Consumers:

Every type of consumer whether they are domestic, industrial or commercial, everyone is responsible to
conserve energy for their own benefit as well as for the benefit of the country.

Tips for Industrial units:

1. Repair oil leakages because leakage of one drop of oil per second amounts to a loss of over
2000litres/year. The maintenance in plant should follow the “zero leak” philosophy
2. Arrange for regular boiler/furnace tune ups which conserves energy.
 3. Filter oil in stages. Impurities in oil affect combustion and incomplete combustion leads to
wastage of fuel. Observe the color of smoke emitted from chimney. Hazy brown smoke
indicates proper combustion. Black and white smoke indicates improper combustion.
4. Hire an energy audit company to ensure that the use of energy is sufficient or not.
5. Install combustion air pre-heaters
6. Reduce steam system generating pressure
7. Install feed water economizers
8. Minimize boiler combustion loss by optimizing excess air.

Tips for Domestic and Commercial Consumers: Controlled energy demand means that we are polluting
the environment less, keeping the air cleaner and also lessens our bills. In commercial sectors too, there is a
strong need to create awareness for conservation of energy. For example in hotels or restaurants etc.
selection of the heating appliance and the source of heat is instrumental in energy efficiency and
conservation. Some of the energy consumption reduction measures include:

1. Use energy efficient appliances.

2. Cleaning stoves, burners and oven can extend the life of appliance as well as it saves the
energy. Observe the flame. Blue flame is more efficient than a yellow flame.
3. Install conical baffle on water geysers that will save upto 25% of gas and upto 45% cash
4. Ovens and geysers should not be kept on idle mode for hours. They should be switched off
after use. They consume more power.
5. Use pressure cookers as much as possible
6. Boil water in a covered pan, water will be boiled fast and will use less energy
7. Bring items taken out of refrigerators to room temperature before placing on gas stoves for
hating
8. Always check leakages that is also the reason for over billing.
 9. Do not use compressors when gas pressure is low. It is illegal
10. The most important responsibility of the consumers is to report any illegal activities e.g. use
of compressors. Consumers should be more proactive in reporting leakages and theft in their
localities

C. Recommendations to Government:

1) Domestic Productivity: Pakistan is blessed to have enormous natural resources. The major
energy resources of Pakistan are oil, gas and coal etc. which are backbone of the country.
According to the United States Energy Information Administration, Pakistan may have over 9
billion barrels of petroleum oil and 105 trillion cubic feet of natural gas reserves. The demand for
gas and oil is more and home production is very less. And to meet this excessive demand, Pakistan
imports oil which is expensive for the consumers. Instead of relying on expensive imports, Pakistan
should take advantage of its own natural resources for its economic development.

Invest in Non-Renewable Resources: Pakistan should focus on domestic production of

oil and gas because there is very low cost of pumping crude oil i.e. $8 to $12 per barrel.
Pakistan should use these oil and gas reserves. Government should give money to
companies for this purpose. This will decrease the electricity and gas prices. If Pakistan
started the oil and gas production domestically then it can also export it. It will also help
to decrease the trade deficit and there will be increase in economic growth and
development of Pakistan.
Invest in Renewable Resources i.e. Waste Gasification: Industrial waste can be used
to produce fuel. This involves heating the waste. This is done in a very low oxygen
 environment. In a sealed vessel, the garbage is brought to a high heat (around 1600F)
which releases various gases called Syngas. These gases are then converted to biofuels
Jatropha Curcas Seeds: Jatropha is an oil seed producing shrub that has good potential
to be a fuel plant that can be cultivated even in barren soil. The oil found in its seed can
be converted into a high quality diesel fuel. Its seeds contain almost 37% oil. It can
survive in tough conditions like drought. It takes 1 year to grow and gives its best yields
within 2 to 3 years. Ploughing is not necessary. They have pesticidal and fungicidal
properties so they do not need pesticides
Other Renewable Resources: There are several other renewable resources like Wind
Energy, Solar Energy and Coal etc. which can be used to produce fuels but they need
high level of investments. Pakistan is already working on these resources.

2) Fair Distribution of Energy Resources: The energy resources should be fairly distributed. In
many areas in Pakistan, the energy resources are not fairly distributed. Natural gas or imported
LNG is being provided to those areas where there is no shortage of gas. And those rural areas of
Pakistan which are facing excessive shortages of gas are left behind.
3) Invest in People, Invest in Education: Every country’s main resource is its People. Economic
development of any country can only be increased is state invests in its people, increases their
capability, enhances their skills, empower them by providing them practical knowledge and
education. When they will be professionally developed, they will be able to deliver for their
country.
4) Improving Government Policy: Government should try to offer better and competitive policy that
should meet with the international standards for attracting foreign investment as well as it will
encourage local investment. Government can use Expansionary Monetary Policy which will
decrease interest rates and will increase investment.
5) Improve Regulatory Environment: The main issue of Pakistan is the irregularities in its system.
It needs radical change in its administrative structure. Government should improve regulatory
environment by bringing competitive team and leadership which will work without any government
intervention, they will ensure that industries in every sector are registered, pay taxes regularly and
uses fair means to gain profits. Foreign investment will never come to Pakistan until and unless it’s
local industry is well regulated. For effective regulatory reforms which will ensure ease of doing
business, Government should:
 Establish clear and transparent legal mandates for regulatory authorities and
provide easy access to laws.
 Make Appropriate assessment of the impact of proposed regulations
 Make Efficient mechanism for complaints
 Lessen the duration for registration
 Simplify taxation system and visa regime. Visa issuance duration should be less for
foreign investors
 Give easy access to credit to fulfill financial requirements
 Make sure the provision of all type of facilities in industrial zones

6) Provide Peaceful Environment: To improve Economic Stability, it is important for Pakistan to

increase its exports. Foreign investments can play key role in this regard. But for this, it is
important to improve law and order situation in the country to attract foreign investment in every
sector for economic development
 Conclusion

There is huge energy crisis in Pakistan. Demand for energy is increasing while available resources are not
being utilized properly to meet this demand. In this report we tried to find out what services SNGPL is
providing to its consumers and how much consumers are satisfied with their work. After analyzing the
company’s operations and as well as public opinion about their services, we concluded that irregularities in
system of both government and companies, & low domestic production are the reasons for energy crisis in
the country. These issues must be solved to cope with the current energy crisis.