ISLAMABAD: Inter State Gas Systems Pvt. Ltd. (ISGS), Pakistan’s flagship entity mandated to implement major cross-border energy projects, has been pushed into virtual paralysis due to what officials describe as “gross interference” by its own board of directors, stalling multibillion-dollar strategic gas initiatives despite years of public spending and effort.
According to senior officials familiar with internal assessments, ISGS has failed to make progress on key national projects assigned to it by the Petroleum Division. Once responsible for advancing the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline and the Iran-Pakistan (IP) pipeline, the company is now struggling to execute even routine operational tasks.
The TAPI pipeline—long viewed as a potential gateway to Central Asian energy and regional cooperation—has stalled to such an extent that the TAPI Company’s Islamabad office has reportedly shut down, a development officials privately describe as a serious diplomatic setback. Meanwhile, the IP pipeline remains entangled in litigation, further limiting Pakistan’s energy options.
Another major setback has been the abandonment of underground gas storage initiatives. Despite a memorandum of understanding signed with Oil and Gas Development Company Limited (OGDCL) in March 2024, the ISGS board allegedly scrapped the project after extensive preparatory work. The lack of strategic gas storage forced Pakistan last winter to divert more than two dozen LNG cargoes and curtail domestic gas production—an issue policymakers had hoped ISGS would address.
Records filed with the Securities and Exchange Commission of Pakistan (SECP) show that since July 2024, the ISGS chairman has convened 35 meetings, including board, audit, human resource, procurement, risk management, strategy and nomination committee sessions—26 in FY25 alone and nine more since July 2025. Despite the frequency of meetings, officials say little tangible progress has been achieved.
Controversy has also emerged around a rationalisation drive launched by the ISGS chairman near the end of his tenure, a move insiders suggest may have been aimed at justifying an extension after more than five years in office without earlier reforms.
When contacted, ISGS Chairman Ibne Hassan declined to comment, stating, “I am not liable to reply to answer these questions,” before ending the call. He later did not respond to written queries. Efforts to obtain the Petroleum Division’s stance also proved unsuccessful, as spokesperson Zafar Abbas declined to comment or respond to follow-up questions.
A senior Petroleum Division official, speaking on condition of anonymity, said the TAPI project was unlikely to “see the light of day,” noting that both India and Afghanistan—key partners in the project—are now considered strategic rivals, further complicating prospects for regional energy cooperation.
Story by Israr Khan
