Petroleum Division, World Bank review roadmap for gas market overhaul

August 05, 2026 (MLN):  The government has reviewed the roadmap prepared for transforming Pakistan's gas sector, aimed at moving the country towards a more competitive, open and efficient gas market, drawing on international best practices and developed by the Petroleum Division with technical support from the World Bank.

Federal Minister for Petroleum Ali Pervaiz Malik chaired a high-level meeting with World Bank Country Director for Pakistan Bolormaa Amgaabazar and her delegation at the Petroleum Division to review the roadmap.

Representatives of Sui Northern Gas Pipelines Limited (SNGPL), Sui Southern Gas Company Limited (SSGCL) and the Oil and Gas Regulatory Authority (OGRA) also attended the meeting, according to a press release issued.

Welcoming the World Bank delegation, the Minister acknowledged the institution's continued partnership and technical assistance in supporting the government's energy sector reform agenda, particularly deregulation efforts across various fuel segments, and credited the Sui companies for their contribution to developing the reform framework.

The Minister maintained that deregulation must be paired with a strong post-deregulation architecture to ensure transparency, efficiency and long-term sustainability, adding that the future regulatory framework should incentivize efficiency, encourage competition and protect consumers while keeping the gas market commercially viable.

He further held that the existing subsidy structure requires an overhaul to ensure targeted support, a redefined protected customer category, and reduced market distortions, with the eventual goal of moving to a single market clearing price.

Participants of the meeting endorsed the strategic direction of the reform programme, which envisions a competitive gas market underpinned by effective regulation and market monitoring, with OGRA assuming a strengthened role in ensuring fair competition and oversight.

The framework also proposes restructuring and unbundling the Sui companies by separating their transmission/distribution and energy businesses, while opening up greater room for private sector participation across the gas value chain.

The meeting was also briefed on the expected outcomes of the reform programme, including enhanced energy security, a reduced cross-subsidy burden, fair and transparent pricing for industrial consumers, stronger private sector participation, a financially sustainable outlook for the Sui companies, and fresh investment and employment opportunities across exploration and production, oil marketing, gas trading and intermediary segments.

Participants were informed that the reform package comprises a comprehensive Gas Market Evolution Plan, an investment roadmap, a sector financial model, detailed legal and regulatory analyses, and a dedicated capacity-building programme for OGRA to strengthen its institutional capacity as an independent regulator overseeing a competitive gas market.

The Minister directed that the finalized roadmap be readied for the Prime Minister's approval by the end of August 2026, after which the Petroleum Division will begin phased implementation of the reform programme in consultation with all stakeholders to ensure a smooth and sustainable transition to a modern, competitive and financially viable gas sector.

He reaffirmed the government's commitment to carrying out these reforms to strengthen Pakistan's energy security, improve governance, attract investment and support long-term economic growth.

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