ISLAMABAD, Aug 4: The federal government has unveiled a comprehensive roadmap to deregulate Pakistan’s gas sector, proposing sweeping reforms that include restructuring Sui gas companies, introducing a competitive gas market and gradually shifting towards market-based pricing.
The reform plan, prepared by the Petroleum Division with technical assistance from the World Bank, will be submitted to Prime Minister Shehbaz Sharif for approval this month. Once approved, the government will begin implementing the reforms in phases, according to an official statement.
The proposals were reviewed during a high-level meeting on gas sector reforms chaired by Federal Minister for Petroleum Ali Pervaiz Malik, which was attended by the World Bank’s country director and senior officials.
Key Reforms Planned for Pakistan’s Gas Sector
The proposed roadmap includes the restructuring and unbundling of the country’s Sui gas companies by separating their transmission, distribution and energy businesses to improve operational efficiency and transparency.
The government also plans to redesign the gas subsidy system so that financial assistance is provided only to eligible consumers through a targeted mechanism.
As part of the reforms, Pakistan will gradually move towards a market-clearing gas pricing system, while maintaining a strong regulatory framework to ensure fair competition and consumer protection.
The Petroleum Division said the World Bank had provided technical assistance and shared international best practices during the preparation of the reform strategy.
OGRA’s Role to Be Strengthened
Speaking at the meeting, Ali Pervaiz Malik said the government was committed to creating a competitive, transparent and efficient gas market capable of meeting Pakistan’s long-term energy needs.
He said the role of the Oil and Gas Regulatory Authority (OGRA) would be further strengthened to effectively regulate the evolving market and safeguard consumer interests.
The minister added that the reforms would also create new opportunities for private-sector investment, helping modernise Pakistan’s gas infrastructure and improve service delivery.
What the Reforms Could Mean for Consumers
If approved, the reforms are expected to gradually transform how natural gas is bought, sold and priced in Pakistan.
While the government intends to continue targeted subsidies for deserving consumers, greater competition and increased private-sector participation are expected to improve operational efficiency, encourage investment and strengthen the country’s energy security over the long term.
Officials believe the reforms will also enhance transparency in gas pricing, improve the financial sustainability of Sui gas companies and support the creation of new employment opportunities across the energy sector.
Pakistan’s Energy Sector Faces Growing Challenges
Pakistan’s gas sector has come under increasing financial pressure in recent years due to declining domestic gas production, rising LNG import costs and mounting circular debt.
Energy experts believe the proposed reforms are aimed at building a more sustainable and financially viable gas market while ensuring reliable energy supplies for households, industries and power producers.
The government is expected to finalise the implementation roadmap after the prime minister reviews and approves the reform package.
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