ISLAMABAD, Feb 25 (APP): Federal Minister for Petroleum Ali Pervaiz Malik on Wednesday outlined the government’s reform agenda and strategic direction for Pakistan’s energy sector.
Addressing the two-day Pakistan Governance Forum 2026, themed “Re-imagining Governance for URAAN Pakistan,” organized by the Ministry of Planning, Development and Special Initiatives, the minister commended Planning Minister Ahsan Iqbal for organizing a successful forum that brought together policymakers and stakeholders to deliberate on governance reforms.
He underscored the critical importance of an efficient, functional, and sustainable energy sector, stating that energy holds the same importance for an economy as oxygen does for the human body.
Sharing key initiatives undertaken by the Petroleum Division under the leadership of Prime Minister Shehbaz Sharif, the minister outlined a comprehensive reform road-map. He said that greater convergence in energy sector planning was being pursued.
Recent steps include the revival of the Cabinet Committee on Energy, chaired by the Prime Minister, and a holistic planning exercise conducted with international consultants Wood Mackenzie.
The exercise integrates all energy supplies and sources with the Power Division’s Integrated Generation Capacity Expansion Plan (IGCEP) framework.
He informed participants that he held a meeting with the Power Minister to finalize a blueprint for making the Integrated Energy Secretariat functional and permanent, ensuring improved coordination and long-term planning.
Highlighting governance improvements, the minister said the “hemorrhaging” in the form of rising gas sector circular debt had been halted without any budgetary backstop.
He said the principal amount, which had risen to approximately Rs. 1,831 billion by June 2025, declined to Rs. 1,816 billion by September 2025.
He stressed that discourse around gas circular debt must be informed and evidence-based, explaining that the reported increase in circular debt largely reflects accumulated interest and Late Payment Surcharges (LPS). A comprehensive liquidation plan is being finalized and will be presented to the Prime Minister.
The minister also informed the forum that an independent Unaccounted for Gas (UFG) study had been commissioned to further tighten UFG allowance criteria through the Oil and Gas Regulatory Authority (OGRA).
He said petroleum policies had been updated and a new Tight Gas Policy announced to enhance energy security. A shale pilot project is currently underway in Hyderabad, while the Directorate General of Petroleum Concessions (DGPC) is being restructured and revitalized under the guidance of the World Bank.
Acknowledging that further work remains, the minister emphasized that the government has taken the most critical initial steps toward reform.
He highlighted growing foreign investor interest in Pakistan’s energy sector, noting that Turkish Petroleum is opening an office in Islamabad, a delegation from SOCAR recently visited Pakistan, and the Kuwait Foreign Petroleum Exploration Company (KUFPEC) is expected to visit in the coming months.
The minister reaffirmed the government’s commitment to greater deregulation in the gas sector to unleash market forces, improve operational efficiency, and encourage increased private sector investment in Pakistan’s energy markets.