ISLAMABAD, Aug 1: Pakistan is preparing to lift its nationwide ban on new gas connections—in place since 2019—by introducing a new supply model based on dollar-linked, unsubsidized liquefied natural gas (RLNG) pricing, a senior government official revealed on Thursday.
A summary has been submitted for Prime Minister’s approval, which would enable both household and commercial consumers to apply for new connections. However, the gas supplied will be imported LNG, with its price pegged to international crude oil and subject to foreign exchange fluctuations. While consumers will continue to pay in rupees, tariffs will vary based on global market trends.
Applicants will be required to pay higher security deposits and sign legal affidavits waiving the right to challenge LNG-based pricing. Previously, domestic demand notices cost around Rs4,000, but could now rise to Rs40,000, the official stated.
The shift follows increased gas availability after cuts to captive power plants and the energy sector. With domestic production declining and system losses reduced, authorities are opting to formally transition to an LNG-based supply model, effectively shifting the burden of price volatility from the state to consumers.
This marks a pivotal policy change as Pakistan formalizes its reliance on expensive imported gas to meet rising demand, amid growing pressure on energy infrastructure.
