Pakistan’s energy landscape is poised for a transformative $5 billion investment surge over the next three years, driven by robust interest from local and international oil and gas exploration firms. The influx follows landmark reforms, including the revamped Petroleum Policy 2024 and the newly introduced Tight Gas Policy, which offer lucrative incentives and a streamlined regulatory framework to attract global capital.
Government officials confirmed that recent amendments, such as revised gas pricing and the inclusion of RLNG (Re-gasified Liquefied Natural Gas) in revenue calculations, have stabilized the financial outlook of major utilities like Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC). These measures have curbed circular debt, ensured uninterrupted gas supplies, and mitigated depletion risks in aging fields.
A pivotal moment came with the September 4 signing of the Machike-Thalian-Taru Jabba White Oil Pipeline Consortium Agreement, a flagship project underscoring Pakistan’s push for energy self-sufficiency. The Petroleum Division’s reforms also permit E&P firms to sell up to 35% of production to third parties, liberalizing markets and boosting cash flows. High-risk exploration zones now feature enhanced pricing incentives, while partnerships with global consultancies like DeGolyer and MacNaughton aim to modernize offshore exploration.
Collaboration with the World Bank has yielded advanced cash flow monitoring systems, and gas allocation reforms now prioritize industrial needs alongside domestic demand, averting urea import crises. Simultaneously, crackdowns on illegal petroleum imports and mineral sector upgrades—including resolution of the Reko Diq dispute—are drawing Saudi investment and unlocking coal gasification projects.
Revenue streams surged, with Rs 54.7 billion collected in oil royalties and Rs 10 billion allocated for RLNG subsidies, while infrastructure expansions like the 230-km Shaheed Fahad Ashfaq Pipeline have extended gas access to 20,000 new households.
With geological surveys mapping 51,200 sq. km and mineral laws aligning with global standards, Pakistan’s energy and mineral sectors are charting a course toward sustainable growth, energy security, and socio-economic uplift. “These reforms mark a renaissance for Pakistan’s energy future,” stated a Petroleum Division spokesperson, signaling confidence in the nation’s emerging role as a regional energy hub.
