The federal government has reviewed a comprehensive roadmap aimed at transforming Pakistan's gas sector into a more competitive, open and efficient market, with the reform programme developed by the Petroleum Division in collaboration with the World Bank.

The roadmap was reviewed during a high-level meeting chaired by Federal Minister for Petroleum Ali Pervaiz Malik, which was attended by World Bank Country Director for Pakistan Bolormaa Amgaabazar, representatives of Sui Northern Gas Pipelines Limited (SNGPL), Sui Southern Gas Company Limited (SSGCL) and the Oil and Gas Regulatory Authority (OGRA).

During the meeting, the minister emphasized that deregulation must be supported by a strong regulatory framework to ensure transparency, efficiency and long-term sustainability. He said future reforms should promote competition, improve operational efficiency, safeguard consumer interests and maintain the commercial viability of Pakistan's gas sector.

The proposed reform framework also calls for restructuring the existing subsidy system through targeted support, redefining the protected consumer category and gradually moving towards a single market-clearing gas price to reduce market distortions.

Participants endorsed the strategic direction of the reforms, which envision a competitive gas market under effective regulatory oversight. The plan also proposes the restructuring and unbundling of SNGPL and SSGCL by separating their transmission and distribution operations from energy supply businesses, while creating greater opportunities for private sector participation across the gas value chain.

According to the Petroleum Division, the reform package includes a Gas Market Evolution Plan, an investment roadmap, sector-wide financial modelling, legal and regulatory reforms, and a dedicated capacity-building programme aimed at strengthening OGRA's role as an independent regulator.

The government expects the reforms to enhance energy security, reduce the cross-subsidy burden, improve pricing transparency for industrial consumers, strengthen the financial sustainability of gas utilities and attract fresh investment across the exploration, production, gas trading and energy infrastructure sectors.

The petroleum minister directed officials to finalize the roadmap for submission to the Prime Minister by the end of August 2026, after which the reforms will be implemented in phases in consultation with stakeholders to support the development of a modern, competitive and financially sustainable gas market in Pakistan.