ISLAMABAD, October 27, 2026: The federal government is developing a phased plan to restructure Pakistan’s gas market, with proposals addressing circular debt, pricing arrangements and private-sector participation.
Finance Minister Muhammad Aurangzeb reviewed the roadmap at an October 19 meeting attended by petroleum officials, gas utility representatives and a World Bank team.
According to the Finance Division, the discussions focused on improving the financial sustainability of gas utilities while moving towards a more competitive market.
Officials identified accumulated liabilities, cross-subsidies, unaccounted-for-gas losses and mismatches between supply and demand as major challenges.
Cross-subsidies arise when revenue from one category of consumers helps support lower prices for another, creating difficult choices when the underlying costs of supply increase.
The proposed reforms would seek to improve operational efficiency, expand business-to-business gas transactions and create opportunities for private investment.
The government also wants more predictable access to competitively priced gas for exporters.
An earlier Petroleum Division roadmap, developed with World Bank technical support, proposed separating the transmission, distribution and energy businesses of the Sui gas companies.
It also envisaged a stronger oversight role for the Oil and Gas Regulatory Authority and changes to subsidy arrangements.
The Finance Division said the reform framework draws on international experience, including gas-market changes in Türkiye and the United Kingdom.
A central challenge is balancing competition with consumer protection.
Industrial customers want dependable gas supplies at competitive prices, while households and other regulated consumers depend on arrangements designed to limit their exposure to higher costs.
How those competing interests are balanced will shape the future of Pakistan’s gas utilities and the role private companies can play in supplying the market.