Reforms discussed to make gas sector viable

Chairing a high-level meeting on Monday, Finance Minister Muhammad Aurangzeb called for lessons from international experience in reforming Pakistan's gas sector. He named circular debt, cross-subsidies, unaccounted-for-gas losses and supply-demand imbalances as the core challenges. According to Dawn, the meeting reviewed a proposed restructuring and deregulation roadmap focused on financial sustainability, efficiency, consumer welfare and private participation.

Attendees included the petroleum minister, the prime minister's adviser on privatisation, the special assistant on energy, senior officials and gas utility representatives, along with a World Bank team. The proposed framework draws on reforms in Turkiye and the United Kingdom while taking account of Pakistan's institutional setup and market conditions. Participants stressed careful sequencing to protect supply security and regulated consumers, and the framework will go to the prime minister before further consultations.

Stated goals include a financially sustainable and competitive gas market, more private investment, lower fiscal and sovereign risks, and reduced system losses through efficiency benchmarks. Legacy circular debt and a clear approach to cross-subsidies were identified as central to the viability of restructured gas entities. Dawn reported that the government reaffirmed a phased and consultative approach to the reforms.