Karachi: Sui Northern Gas Pipelines Ltd has formally requested an extension for releasing its quarterly accounts for the fiscal year 2024-25, citing the material effects of the application of IFRS 14 "Regulatory Deferral Accounts" on its financial statements. This request was made under the provision of Section 237 of the Companies Act, 2017, which mandates the preparation and circulation of quarterly financial statements within thirty days of the close of the quarter.
The exemption from applying IFRS 14, previously granted by the Securities and Exchange Commission of Pakistan (SECP) on November 5, 2024, expired on June 30, 2024. This prompted the company to seek an extension, as the application of IFRS 14 has significant implications on its financial documentation. The company approached the SECP through a formal letter dated January 28, 2025, seeking an extension of the exemption.
However, the SECP, in its response on May 14, 2025, indicated that the authority to grant such exemptions now lies with the Federal Government, as per Section 25(2) of the State-Owned Enterprises (Governance and Operations) Act, 2023, and the SOE Policy 2023. Following this directive, Sui Northern Gas Pipelines Ltd has engaged the Ministry of Finance through the Ministry of Energy (Petroleum Division), seeking the necessary exemption via a communication dated June 5, 2025.
The company has expressed its inability to finalize and circulate its quarterly financial statements until a decision is rendered by the Federal Government regarding the exemption. As a result, Sui Northern Gas Pipelines Ltd has respectfully requested the SECP to grant a 15-day extension from the date a decision is made by the Federal Government concerning their request.
According to information available from the Pakistan Stock Exchange (PSX), shares of Sui Northern Gas Pipelines Ltd exhibited a Moderate move in recent trading sessions. The company remains hopeful for a favorable decision from the Federal Government, which would allow it to comply with the financial reporting requirements stipulated by the Companies Act, 2017.