Pakistan’s state-owned gas utilities are facing increased scrutiny after a parliamentary audit revealed that Sui Northern Gas Pipelines Limited (SNGPL) spent approximately Rs. 110 million (Rs. 11 crore) on tea, coffee, club memberships, and other employee benefits.
According to the audit report, these expenditures were recorded under human resources (HR) expenses and were ultimately recovered through gas tariffs, raising concerns over whether consumers indirectly bore the cost of non-operational benefits. The findings have sparked debate over transparency, financial discipline, and the responsible use of public funds within state-owned enterprises.
Parliamentary auditors questioned the justification for including such expenses in tariff calculations, arguing that operational efficiency should remain the priority, particularly at a time when consumers are already facing rising utility costs. The report has also renewed calls for stricter oversight of public sector spending and improved accountability in government-owned organizations.
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In response, company officials defended the expenditures, stating that the employee benefits were provided in accordance with existing company policies and approved service rules. They maintained that the perks were legitimate HR-related costs and not unauthorized spending.
Meanwhile, the Oil and Gas Regulatory Authority (OGRA) has clarified that it has already excluded such non-operational expenses from future gas tariff calculations. The regulator says this step is intended to ensure that consumers are not burdened with costs unrelated to the core business of gas transmission and distribution.
The audit findings have once again highlighted the importance of transparency and financial accountability in Pakistan’s public sector. As authorities review the matter, many stakeholders are calling for stronger governance practices to ensure that public resources are managed efficiently and that consumer interests remain protected.
