ISLAMABAD: Federal Finance Minister Senator Muhammad Aurangzeb announced on Tuesday that Pakistan’s oil and gas sector has witnessed substantial progress in recent years, marked by diversification, regulatory reforms, and growing foreign investment.
Delivering the Budget 2025–26 speech, the minister highlighted renewed interest from international firms, particularly Turkish Petroleum, in exploration and production (E\&P) through competitive bidding — a major step forward for the onshore segment after years of stagnation.
He also noted the launch of the Pakistan Offshore Exploration Bid Round 2024 — the first in over a decade — signaling a revival of offshore exploration activities.
Aurangzeb revealed that E\&P companies have pledged over \$5 billion in future investments, with ongoing efforts to boost the output of existing fields through modern technologies. Recent oil and gas discoveries, he said, have strengthened energy security and reduced import dependency.
Policy reforms, including amendments to the Petroleum Policy 2012 and the Tight Gas Policy, have enhanced the sector’s competitiveness with better pricing mechanisms.
The minister also highlighted progress in the refining and downstream sector, citing the Pakistan Refining Policy 2023, which supported Euro-V fuel upgrades and capacity expansion. Moves toward fuel price deregulation were aimed at promoting competition and attracting private sector participation.
