Pakistan finalises gas sector deregulation roadmap

ISLAMABAD: The Pakistan government has finalised a roadmap to deregulate gas sector with the support of the World Bank, paving the way for wide-ranging reforms aimed at creating a more competitive and transparent energy market.

The roadmap was discussed during a high-level meeting on gas sector reforms chaired by Federal Minister for Petroleum Ali Pervaiz Malik and attended by the World Bank’s Country Director.

A key component of the reform plan is the restructuring and unbundling of the Sui gas companies. Under the proposed changes, their transmission, distribution and energy businesses will be separated to improve operational efficiency and market competition.

The government also plans to redesign the gas subsidy framework, limiting financial assistance to eligible consumers through a targeted subsidy system. As part of the reforms, Pakistan will gradually transition towards a market-clearing pricing mechanism for natural gas.

During the meeting, the World Bank provided technical assistance and shared international best practices to support the reform process. The roadmap is expected to be presented to Prime Minister Shehbaz Sharif for approval later this month, after which implementation will begin in phases.

Speaking at the meeting, Ali Pervaiz Malik said the reforms would help establish a competitive, transparent and efficient gas market while ensuring a robust regulatory framework alongside deregulation.

Officials also agreed to strengthen the role of the Oil and Gas Regulatory Authority (OGRA) to ensure effective oversight of the competitive gas market and encourage greater private sector participation and investment in the energy sector.

The petroleum minister said the reform programme would strengthen Pakistan’s energy security, improve price transparency, enhance the financial sustainability of the Sui companies and create new employment opportunities.