Senator Muhammad Aurangzeb chaired a high-level meeting on 19 October to evaluate a proposed roadmap for deregulating and restructuring Pakistan’s gas sector. The Ministry of Finance stated that these reforms intend to create a competitive gas market that protects consumers while supporting businesses and private investment.
Participants discussed a gradual shift toward increased competition through better regulation, improved operational performance, and more sustainable pricing and supply methods. Officials reviewed major sectoral hurdles, including imbalances between supply and demand, unaccounted-for-gas losses, cross-subsidies, and circular debt.
The group focused on resolving legacy liabilities and improving the financial health of gas utilities without placing an unfair burden on consumers or weakening the new market structure. A sustainable way to handle circular debt and cross-subsidies was identified as a requirement for the viability of restructured entities.
Expected results of the plan include enhanced energy security, lower system losses, and more stable pricing for exporters and business-to-business transactions. The proposed framework incorporates international experiences from the gas sectors in the United Kingdom and Türkiye.
The final framework will be submitted to the Prime Minister. The Federal Minister for Petroleum, the Adviser to the Prime Minister on Privatization, and the Special Assistant to the Prime Minister on Energy attended the session alongside senior Petroleum and Finance Division officials, gas utility representatives, and a World Bank team.
