ISLAMABAD: Pakistan and Turkmenistan agreed on Wednesday to fast-track a major pipeline project that will allow the Central Asian state to supply natural gas to Pakistan and India via Afghanistan, thereby enhancing economic activity across the region and benefiting all involved countries.
The understanding between the two states was reached during a meeting between Federal Minister for Petroleum Dr. Musadik Malik and Turkmenistan’s Foreign Affairs Rasit Meredow who arrived on a two-day visit to Islamabad on Tuesday.
The Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline will originate from Galkynysh, the world’s second-biggest gas field, and end at the Indian city of Fazilka near the Pakistan border.
If the project is implemented, it will help Turkmenistan supply about 33 billion cubic meters (bcm) of natural gas each year along a route covering a distance of over 1,800 kilometers.
According to an official statement released by the Ministry of Energy’s Petroleum Division, Pakistan and Turkmenistan are working to “expedite” the pipeline project.
“TAPI pipeline project will lower energy costs, which can boost industrial growth, create jobs and foster economic development,” it quoted Pakistan’s petroleum minister as saying during the meeting. “Reliable and affordable energy supplies are vital for industrial sectors and overall economic stability.”
“This project, aimed at fostering economic integration and energy security, has witnessed substantial progress through collaborative efforts,” he continued, stressing the importance of continued engagement between the two countries.
Malik added Pakistan was fully committed to the project which was vital for regional energy cooperation and infrastructure development.
The visiting dignitary expressed appreciation for the warm welcome extended to his delegation by the Pakistani authorities.
“Together we will chalk out a roadmap for cooperation between both countries,” he added.
The meeting was also attended by the CEO of TAPI Pipeline Company Limited.
Other participants of the meeting emphasized the project’s strategic importance in enhancing regional connectivity, promoting economic growth and meeting the energy demands of participating nations.
The TAPI project was envisaged in the early 1990s and officially agreed upon in December 2010.
It has primarily been delayed due to security concerns, geopolitical tensions, funding challenges and bureaucratic hurdles.
Pakistan and Turkmenistan agree to fast-track gas pipeline project involving Afghanistan and India
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Pakistan and Turkmenistan agree to fast-track gas pipeline project involving Afghanistan and India
- TAPI pipeline project was envisaged in the early 1990s and officially agreed upon in December 2010
- It has been primarily delayed due to security concerns, funding challenges and bureaucratic hurdles
Pakistan PM orders accelerated privatization of power sector to tackle losses
- Tenders to be issued for privatization of three major electricity distribution firms, PMO says
- Sharif says Pakistan to develop battery energy storage through public-private partnerships
ISLAMABAD: Pakistan’s prime minister on Monday directed the government to speed up privatization of state-owned power companies and improve electricity infrastructure nationwide, as authorities try to address deep-rooted losses and inefficiencies in the energy sector that have weighed on the economy and public finances.
Pakistan’s electricity system has long struggled with financial distress caused by a combination of factors including theft of power, inefficient collection of bills, high costs of generating electricity and a large burden of unpaid obligations known as “circular debt.” In the first quarter of the current financial year, government-owned distribution companies recorded losses of about Rs171 billion ($611 million) due to poor bill recovery and operational inefficiencies, official documents show. Circular debt in the broader power sector stood at around Rs1.66 trillion ($5.9 billion) in mid-2025, a sharp decline from past peaks but still a major fiscal drain.
Efforts to contain these losses have been a focus of Pakistan’s economic reform program with the International Monetary Fund, which has urged structural changes in the energy sector as part of financing conditions. Previous government initiatives have included signing a $4.5 billion financing facility with local banks to ease power sector debt and reducing retail electricity tariffs to support economic recovery.
“Electricity sector privatization and market-based competition is the sustainable solution to the country’s energy problems,” Prime Minister Shehbaz Sharif said at a meeting reviewing the roadmap for power sector reforms, according to a statement from the prime minister’s office.
The meeting reviewed progress on privatization and infrastructure projects. Officials said tenders for modernizing one of Pakistan’s oldest operational hubs, Rohri Railway Station, will be issued soon and that the Ghazi Barotha to Faisalabad transmission line, designed to improve long-distance transmission of electricity, is in the initial approval stages. While not all power-sector decisions were detailed publicly, the government emphasized expanding private sector participation and completing priority projects to strengthen the electricity grid.
In another key development, the prime minister endorsed plans to begin work on a battery energy storage system with participation from private investors to help manage fluctuations in supply and demand, particularly as renewable energy sources such as solar and wind take a growing role in generation. Officials said the concept clearance for the storage system has been approved and feasibility studies are underway.
Government briefing documents also outlined steps toward shifting some electricity plants from imported coal to locally mined Thar coal, where a railway line expansion is underway to support transport of fuel, potentially lowering costs and import dependence in the long term.
State authorities also pledged to address safety by converting unmanned railway crossings to staffed ones and to strengthen food safety inspections at stations, underscoring broader infrastructure and service improvements connected to energy and transport priorities.
