Petroleum Minister Ali Pervaiz Malik on Tuesday chaired a high-level meeting with World Bank Country Director Bolormaa Amgaabazar and reviewed a roadmap for the transition of Pakistan’s gas sector to a more competitive, open and efficient gas market.
In a statement, the Petroleum Division said it had devised the plan with technical support from the World Bank, drawing upon international best practices. It said the minister had welcomed Amgaabazar and the World Bank delegation to the Petroleum Division, appreciating the lender’s continued partnership and technical assistance in supporting the Government of Pakistan’s energy sector reform agenda, particularly its efforts toward deregulation. He also acknowledged the valuable contribution of the Sui companies in developing the reform framework.
According to the minister, deregulation must be complemented by a strong post-deregulation architecture capable of ensuring transparency, efficiency, and long-term sustainability. He said the future regulatory framework should incentivize efficiency, foster competition, and protect consumers while enabling a commercially viable gas market. He also stressed that the existing subsidy structure needed redesigning to ensure targeted support, redefine protected customer category and reduce market distortions, eventually moving towards a single market clearing price.
The meeting reviewed and endorsed the strategic direction of Pakistan’s gas sector reforms. The roadmap envisions the development of a competitive gas market supported by effective regulation and market monitoring, with the Oil and Gas Regulatory Authority (OGRA) playing a strengthened role in ensuring fair competition and market oversight. The reform framework also proposes the restructuring and unbundling of the Sui companies by separating their transmission/distribution and energy businesses, while creating greater opportunities for private sector participation throughout the gas value chain.
The participants reviewed the expected outcomes of the reform program, including enhanced energy security, a reduced cross-subsidy burden, fair and transparent pricing for industrial consumers, stronger private sector participation, a financially sustainable future for the Sui companies, and new investment and employment opportunities across the exploration and production, oil marketing, gas trading, and intermediary segments.
The meeting was informed the reform package includes a comprehensive Gas Market Evolution Plan, an investment roadmap, a sector financial model, detailed legal and regulatory analyses, and a dedicated capacity-building program for OGRA to strengthen its institutional capability as an independent regulator responsible for overseeing a competitive gas market.
Malik directed the preparation of the finalized roadmap by the end of August 2026 from submission to, and approval of, the prime minister. Following the prime minister’s approval, the Petroleum Division would initiate phased implementation of the reform program in consultation with all stakeholders to ensure a smooth and sustainable transition to a modern, competitive, and financially viable gas sector.
The minister reaffirmed the government’s commitment to implementing these reforms to strengthen Pakistan’s energy security, improve governance, attract investment, and support long-term economic growth.