The federal government has decided not to increase gas prices for any category of consumers over the next six months, offering relief to households and businesses struggling with persistently high living and operating costs. The decision was confirmed by Petroleum Minister Ali Pervaiz Malik during a briefing to the National Assembly Standing Committee on Petroleum, even as the gas sector’s circular debt continues to mount and has now approached nearly Rs3 trillion.
According to media reports, the minister informed lawmakers that Prime Minister Shehbaz Sharif had directed the freeze in gas tariffs for the remainder of the current fiscal year. The decision is aimed at easing financial pressure during the winter months, when gas consumption typically rises for domestic and commercial users. The policy reflects a balancing act between consumer relief and the growing fiscal challenges facing the energy sector.
While the tariff freeze offers short-term relief, underlying structural issues in the gas sector remain unresolved. During the committee meeting, concerns were raised over the escalating circular debt, which has crossed Rs3 trillion. MNA Asad Alam Niazi questioned whether the government was considering the introduction of a Rs5 per litre levy on petrol and diesel to help manage the debt burden. In response, the petroleum minister said that a comprehensive briefing on the matter would be provided in due course, adding that a detailed report on gas sector debt, prepared in line with IMF requirements, has already been submitted to the cabinet’s energy committee.
The minister also highlighted progress on the supply side, pointing to a recent agreement with Qatar that allows Pakistan to divert excess liquefied natural gas to international markets without breaching existing contractual commitments. The arrangement, he said, not only improves flexibility in LNG management but also strengthens bilateral energy cooperation. Malik praised Qatar for honoring its commitments at times when other global suppliers were unable to deliver, underscoring the importance of long-term partnerships in ensuring energy security.
Efforts to improve efficiency within gas distribution companies were also outlined during the briefing. Malik said that Sui Northern Gas Pipelines Limited has managed to reduce unaccounted-for gas losses from 9 percent to 5 percent, while Sui Southern Gas Company has brought losses down from 17 percent to 10 percent. These reductions mark progress in addressing long-standing issues of leakage, theft, and operational inefficiencies. However, challenges persist, particularly in Balochistan, where SSGC continues to report annual losses of around Rs12 billion. The minister said steps are being taken to address issues such as low gas pressure in Quetta and surrounding areas.
On the supply front, Malik assured lawmakers that domestic gas availability has improved compared to last year. Daily gas supplies during the current winter season are higher, and no local gas fields have been shut down. He added that additional gas has been allocated to power plants to reduce the risk of load shedding, which has previously strained both households and industry during peak demand periods.
The decision to keep gas prices unchanged reflects the government’s broader attempt to provide economic relief while managing commitments under ongoing reform programs. However, analysts note that without deeper structural reforms, including improved recoveries, pricing rationalization, and loss reduction, the financial stress on the gas sector is likely to persist. For now, the tariff freeze provides temporary relief, even as policymakers continue to grapple with the long-term sustainability of Pakistan’s energy system.
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