Federal Minister for Petroleum Ali Pervez Malik has disclosed that Pakistan suffered a massive financial loss after Liquefied Natural Gas was imported at high prices and sold at subsidized rates, causing an estimated Rs 1,000 billion burden on the national exchequer. He said the costly LNG was sold below market value over the past four years, leading to a cumulative loss of nearly Rs 1 trillion and putting severe pressure on public finances.
The minister emphasized that the government’s current priority is to promote and rely more on indigenous fuel resources to reduce future losses. He also confirmed that the Iran-Pakistan gas pipeline dispute is presently under consideration by an international arbitration court. Malik noted that inefficiencies in the energy sector worsened the situation, particularly as the power sector failed to lift the LNG volumes it had initially committed to purchase.
Highlighting supply and demand mismatches, he explained that while the Power Division reports a daily LNG demand of 800 million cubic feet, actual consumption remains around 400 million cubic feet, contributing to surplus gas and financial strain. He further announced that under the direction of the prime minister, the government has decided not to increase gas prices for the next six months in order to provide relief to consumers.
The federal government has already decided against any further increase in gas prices from January 1. Ali Pervez Malik shared these details while briefing the National Assembly Standing Committee on Petroleum, outlining the challenges facing the energy sector and the government’s plans to stabilize it.
