Pakistan plans offshore oil exploration after 20 years

July 08, 2026 (MLN): Pakistan will launch offshore oil and gas exploration later this year for the first time in nearly two decades, Petroleum Minister Ali Pervaiz Malik said on Tuesday, as the government simultaneously advances refinery upgrades and broader reforms in the petroleum sector.

Speaking at a meeting of the National Assembly Standing Committee on Petroleum, Pervaiz Malik said the offshore exploration initiative forms part of the government's broader strategy to strengthen the country's long-term energy security.

He said the government was also working on developing strategic petroleum reserves, with two firms currently carrying out studies for the project.

Separately, Pervaiz Malik said the long-awaited refinery upgrade policy had been submitted to the federal cabinet and was expected to secure approval soon, with the government targeting Economic Coordination Committee (ECC) clearance on July 15.

Once approved, the policy will immediately move into implementation, allowing domestic refineries to modernize their facilities and produce Euro-V standard fuels.

The minister reiterated that the government would not pass refinery inefficiencies on to consumers, saying Prime Minister Shehbaz Sharif had decided against imposing any additional financial burden on petroleum users.

Providing an update on fuel markets, Pervaiz Malik said Pakistan had successfully managed fuel supplies during the recent regional conflict despite limited storage capacity, ensuring uninterrupted operations of fertilizer plants and power stations.

He noted that while international crude oil prices had retreated to below pre-conflict levels, petrol and diesel prices remained elevated due to higher freight, insurance and premium costs.

Pakistan imports around 70% of its petrol demand and nearly one-third of its diesel requirements, making domestic fuel prices highly sensitive to global market movements, he added.

Pervaiz Malik also said the petroleum levy on petrol had crossed PKR 80 per litre under commitments agreed with the International Monetary Fund (IMF).

On sector reforms, he said the government intended to gradually deregulate the petroleum market, digitalize the fuel supply chain and improve price transparency by considering daily publication of Platts benchmark prices.

He further expressed confidence that the energy sector's circular debt would not increase by the end of the current fiscal year as discussions with the IMF continue.

During the meeting, committee members also discussed delays in the utilization of Corporate Social Responsibility (CSR) funds in Sindh and Balochistan and sought details regarding expenditures made under the program in Khyber Pakhtunkhwa.

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