Govt reviews gas sector restructuring, deregulation roadmap to address circular debt and attract investment

Finance Minister Muhammad Aurangzeb led a government review of plans to reorganise and open up Pakistan’s gas market, Profit by Pakistan Today reported. Officials discussed circular debt, cross-subsidies, gas losses and mismatches between supply and demand, alongside the financial position of gas utilities and the effect of existing obligations on consumers.

The proposed changes envisage a gradual move towards stronger competition, with regulation and pricing reforms intended to support private investment and improve operating performance. The framework is due to go to the prime minister; additional technical work and consultations are expected before the approach is finalised. The government says the reform process is to be phased, with attention to supply security and regulated consumers.