News & MediaGoverning Gas (A brief on Pakistan’s gas crises and need of reforms-based decisions and governance for a sustainable gas market.)
Governing Gas (A brief on Pakistan’s gas crises and need of reforms-based decisions and governance for a sustainable gas market.)
Article by Ghiyas A Paracha (Energy Gas Specialist)
Published in The News International – 29 July 2026
Pakistan's gas crisis is not simply the result of declining reserves but of years of policy failures that have weakened investment, distorted pricing, and prevented the development of a competitive gas market. Despite having pipelines, LNG terminals, private-sector expertise, and strong industrial demand, the country continues to struggle because of structural governance issues.
The article highlights how delayed payments to producers, regulatory uncertainty, and excessive government intervention have discouraged exploration and production, leading to declining domestic output and increasing dependence on imported LNG. At the same time, billions invested in LNG infrastructure have not delivered their full value because competition has remained restricted.
It argues that Pakistan should separate pipeline transportation from gas supply, allow third-party access to pipeline networks, introduce market-based pricing, and enable LNG terminals to sell directly to customers. These reforms would create a transparent and competitive market capable of attracting long-term private investment.
A stable, predictable regulatory framework is presented as the foundation for restoring investor confidence, increasing domestic gas production, strengthening industrial competitiveness, reducing import dependence, and improving Pakistan's long-term energy security.
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