The government has taken another step towards reshaping Pakistan’s gas sector by reviewing a reform roadmap designed to create a more competitive, efficient and transparent gas market.
Federal Minister for Petroleum Ali Pervaiz Malik chaired a high-level meeting at the Petroleum Division with World Bank Country Director for Pakistan Bolormaa Amgaabazar and her team to examine the proposed reforms. Officials from Sui Northern Gas Pipelines Limited (SNGPL), Sui Southern Gas Company Limited (SSGCL) and the Oil and Gas Regulatory Authority (OGRA) also attended.
The roadmap, prepared by the Petroleum Division with technical support from the World Bank, draws on international best practices and aims to modernise the country’s gas market while encouraging greater private sector participation.
During the meeting, Malik said deregulation alone would not be enough. He stressed the need for a strong regulatory framework that promotes competition, improves efficiency, protects consumers and keeps the gas sector financially sustainable.
He also called for changes to the existing subsidy system, saying support should be directed towards those who need it most while reducing market distortions. The long-term objective, he said, is to move towards a single market-based gas price.
The proposed reforms include separating the transmission and distribution operations of the Sui companies from their energy businesses, allowing more private investment across the gas value chain. OGRA’s role would also be strengthened to oversee competition and ensure effective market monitoring.
Officials said the reform programme is expected to improve energy security, reduce the burden of cross subsidies, bring greater pricing transparency for industrial consumers and place the Sui companies on a more sustainable financial footing. The changes are also expected to encourage investment and create jobs in exploration, production, gas trading, oil marketing and related sectors.
The package includes a Gas Market Evolution Plan, an investment roadmap, financial modelling, legal and regulatory proposals, and a capacity-building programme to strengthen OGRA as an independent regulator.
The petroleum minister directed officials to finalise the roadmap for the prime minister’s approval by the end of August 2026. Once approved, the reforms will be introduced in phases after consultation with stakeholders, with the government aiming to build a modern and financially viable gas sector that supports long-term economic growth.
Read next: Gas shortages intensify in Lahore despite official supply schedule