ISLAMABAD: The Petroleum Division has prepared a comprehensive roadmap for deregulating and reforming the gas sector with support from the World Bank, with the plan expected to be submitted to the prime minister for approval later this month.
Once approved, the reforms will be implemented in phases, according to an official statement issued after a high-level meeting chaired by Petroleum Minister Ali Pervaiz Malik. Representatives of the World Bank, SNGPL, SSGCL and OGRA attended the meeting.
Under the proposed reforms, the two Sui gas companies will be reorganised and unbundled, with transmission, distribution and energy-related businesses separated to improve efficiency, transparency and accountability across the sector.
The government also plans to overhaul the existing gas subsidy system, shifting towards targeted relief for consumers who genuinely need assistance. It will also gradually move the gas market towards a market-clearing pricing mechanism.
The World Bank has provided technical assistance and international expertise to support the reform process.
Petroleum Minister Ali Pervaiz Malik said the government was committed to creating a competitive, transparent and efficient gas market. He stressed that deregulation would be accompanied by a stronger regulatory framework, with OGRA’s role strengthened to effectively oversee competition in the sector.
According to the minister, the reforms could attract new private-sector investment, strengthen energy security and improve price transparency. They are also expected to help put the Sui companies on a more sustainable financial footing and create new employment opportunities.
