Federal Minister for Petroleum, Ali Pervaiz Malik, participated at the Pakistan Governance Forum organized by the Ministry of Planning, Development and Special Initiatives, where he highlighted the Government’s reform agenda and strategic direction for the energy sector.
The Federal Minister appreciated the Planning Minister Prof Ahsan Iqbal for organizing successful forum, bringing together policymakers and stakeholders to deliberate on governance reforms.
In his remarks, the Minister underscored the critical importance of an efficient, functional, and sustainable energy sector. He stated that the energy sector holds the same importance for any economy as oxygen does for the human body.
Sharing key initiatives undertaken by the Petroleum Division under the leadership of Prime Minister Shehbaz Sharif, the Minister outlined a comprehensive reform roadmap.
He noted that greater convergence in energy sector planning is being pursued. Recent steps include the revival of the Cabinet Committee on Energy, chaired by the Prime Minister, and a holistic planning exercise conducted with renowned international consultants Wood Mackenzie, integrating all energy supplies and sources with the Power Division’s IGCEP framework.He informed participants that, together with the Power Minister he had a meeting today to work out a blueprint to make the Integrated Energy Secretariat functional and permanent, ensuring better coordination and long-term planning.
Highlighting governance improvements, the Minister stated that the hemorrhaging in the form of increasing gas sector circular debt has been halted without any budgetary backstop. He shared that the principal amount, which had risen to approximately PKR 1,831 billion by June 2025, declined to PKR 1,816 billion by September 2025. He said that discourse around gas circular debt has to be an educated one. The reported increase in circular debt figures primarily reflects accumulated interest and LPS. A comprehensive liquidation plan is being worked out and presented to the Prime Minister.
The Minister also informed the forum that an independent UFG study has been commissioned to further tighten UFG allowance criteria through OGRA. Petroleum policies have been updated and a new Tight Gas Policy has been announced to enhance energy security. A shale pilot project is currently underway in Hyderabad, while the DGPC office is being restructured and revitalized under the guidance of the World Bank.
Concluding his remarks, the Federal Minister acknowledged that much more remains to be done, but emphasized that the most critical first steps have been taken by the Government. He highlighted growing foreign investor interest in Pakistan’s energy sector, noting that Turkish Petroleum is opening its office in Islamabad, a delegation from SOCAR recently visited Pakistan, and Kuwait Foreign Petroleum Exploration Company (KUFPEC) is expected to visit in the coming months.
The Minister reaffirmed the Government’s commitment to greater deregulation in the gas sector to unleash market forces, improve operational efficiency, and encourage increased private sector investment in Pakistan’s energy markets.
