Finance Minister Muhammad Aurangzeb reviews a phased deregulation roadmap aimed at improving efficiency, addressing gas-sector liabilities and protecting consumers.
ISLAMABAD, October 19, 2026: Finance Minister Senator Muhammad Aurangzeb has chaired a high-level meeting to review proposed restructuring and deregulation of Pakistan’s gas sector, with reforms targeting circular debt, operational inefficiencies, financial sustainability and greater private-sector participation.
According to a press release issued by the Ministry of Finance, the proposed roadmap aims to establish a financially sustainable and competitive gas market that supports businesses, encourages investment and safeguards consumer interests.
The meeting examined a phased transition towards greater competition under effective regulation, alongside improvements in operational performance and gas pricing.
Participants discussed major structural challenges, including circular debt, cross-subsidies, unaccounted-for-gas (UFG) losses and imbalances between supply and demand. Resolving legacy liabilities and ensuring the financial viability of restructured gas utilities were identified as essential to the proposed reforms.
The framework also seeks to strengthen energy security, reduce fiscal and sovereign risks, encourage business-to-business gas transactions and improve access to competitively priced gas for exporters. Stronger efficiency benchmarks and performance-based incentives are expected to help reduce system losses.
Aurangzeb stressed the need for a practical reform plan supported by all stakeholders. The proposed framework draws on international experience, including reforms in Türkiye and the United Kingdom, while considering Pakistan’s market conditions, institutional structure and consumer needs.
Participants emphasised that reforms must be carefully sequenced to protect regulated consumers, maintain security of supply and provide predictable conditions for private investment.
The proposed framework will be presented to the Prime Minister before further technical work and stakeholder consultations refine the plan.
The meeting was attended by the Federal Minister for Petroleum, the Adviser to the Prime Minister on Privatisation, the Special Assistant to the Prime Minister on Energy, senior government officials, gas utility representatives and the World Bank team.