Finance Minister reviews roadmap for gas sector overhaul and deregulation
Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired a high‑level meeting on Monday to examine a proposed plan for restructuring and deregulating Pakistan’s gas sector. The discussion centered on achieving financial sustainability, operational efficiency, consumer protection and greater involvement of the private sector.
According to a press release from the Ministry of Finance, the reforms seek to create a financially viable, efficient and competitive gas market that supports businesses, attracts private investment and safeguards consumer interests. Participants outlined a phased shift toward increased competition, backed by robust regulation, better operational performance and a more sustainable approach to gas pricing and supply.
Key challenges highlighted included the nation’s circular debt, cross‑subsidies, unaccounted‑for‑gas (UFG) losses and imbalances between supply and demand. The talks addressed legacy liabilities and the need to improve the financial health of gas utilities, stressing that existing fiscal pressures must not undermine the new market structure or place an undue burden on consumers.
A durable solution to the legacy circular debt and a clear strategy for handling cross‑subsidies were identified as essential for the viability of restructured entities and the transition to a competitive market. Expected benefits of the reform framework encompass stronger energy security, higher private‑sector investment, reduced fiscal and sovereign risks, more business‑to‑business transactions, stable and sustainable gas pricing, better access to competitively priced gas for exporters and lower system losses through stricter efficiency benchmarks and performance‑based incentives.
The Finance Minister emphasized the need for all stakeholders to rally around a practical, implementable reform architecture. The proposed model draws on international experience, notably gas‑sector reforms in Turkey and the United Kingdom, while being tailored to Pakistan’s institutional setup, market conditions and consumer priorities.
Attendees also underscored the importance of careful sequencing to protect supply security, shield regulated consumers and create a predictable environment for private‑sector participation. The framework will be submitted to the Prime Minister, after which further technical work and stakeholder consultations will refine the approach and facilitate an orderly transition.
The meeting reaffirmed the government’s commitment to advancing gas‑sector reforms in a phased, consultative manner, aiming to strengthen financial sustainability, boost operational efficiency, attract investment and build a more competitive gas market while protecting consumer interests. Present at the session were the Federal Minister for Petroleum, the Adviser to the Prime Minister on Privatization, the Special Assistant to the Prime Minister on Energy, senior officials from the Petroleum and Finance divisions, representatives of gas utilities and a World Bank team.