Pakistan issues new gas connections for domestic consumers after years-long ban

Pakistan Prime Minister Shehbaz Sharif speaks during an event in Islamabad on October 24, 2025. (Handout/PMO/File)
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Updated 26 October 2025
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Pakistan issues new gas connections for domestic consumers after years-long ban

  • Pakistan banned new connections for domestic consumers in 2021 citing depleting gas reserves
  • Ban forced users to switch from piped gas to more expensive and alternative sources of fuel

ISLAMABAD: Prime Minister Shehbaz Sharif formally launched the process to supply Regasified Liquefied Natural Gas (RLNG) connections for domestic consumers across Pakistan on Sunday, saying Islamabad had fulfilled a years-long demand of the people by doing so.

Pakistan’s government banned new gas connections in 2021, citing rapidly depleting gas reserves in the country. This forced users to switch from piped gas to other alternative sources of fuel for cooking and heating purposes, such as Liquefied Petroleum Gas, (LPG), which is more expensive.

Petroleum Minister Ali Pervaiz Malik announced in September that the government had decided to issue new gas connections at the “strong insistence” of the masses.

“Today, that day has finally arrived, Alhamdulillah, that we are now issuing gas, which is very high-quality fuel, for household consumers across Pakistan,” Sharif said at a ceremony held to mark the event in Islamabad.

“There are hundreds of thousands of applications already, so I believe this is a day of great joy.”

Malik had said last month that the government was mindful of the fact that RLNG, which is imported gas, is more expensive than local gas. However, the petroleum minister said it was still 30-35 percent cheaper than LPG.

The development takes place after the Pakistan Petroleum Limited (PPL), one of the country’s leading oil and gas exploration and production companies, announced it had discovered “significant” oil and gas reserves in the eastern Attock district last month.

Earlier in February, Mari Energies, a Pakistani hydrocarbon exploration firm, discovered new oil and gas reserves in the northwestern Khyber Pakhtunkhwa (KP) province, with initial tests suggesting a flow of 12.96 million standard cubic feet per day (MMSCFD) of gas and around 20 barrel per day (bbl/d) of condensate.


Pakistan plans broader privatization push, eyes power utilities this year

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Pakistan plans broader privatization push, eyes power utilities this year

  • Considerably high losses, inefficiencies and mounting subsidies in power sector have dented Pakistan’s public finances
  • Finance Minister Muhammad Aurangzeb says 26 state-owned entities have been handed over to Privatization Commission

ISLAMABAD: Pakistan is widening a sweeping privatization program following the sale of its national airline last year, with power distributors next in line and more state companies to be handed to the Privatization Commission, the finance minister said on Monday.

Pakistan’s government successfully divested a 75 percent stake in the Pakistan International Airlines (PIA) in December last year. The move was part of Islamabad’s broader privatization program, which aims to reduce fiscal losses inflicted by loss-making state-owned enterprises (SOEs) by either privatizing or restructuring them.

Pakistani officials have said the Privatization Commission plans to divest the country’s electricity distribution companies in two batches. The first phase will include the Islamabad Electric Supply Company, Gujranwala Electric Power Company and Faisalabad Electric Supply Company, followed by Hyderabad Electric Supply Company and Sukkur Electric Power Company in the second batch. Considerably high losses, inefficiencies and mounting subsidies in the power sector have dented Pakistan’s public finances over the years, making it a central focus of Islamabad’s reform agenda.

Speaking at a news conference about Pakistan’s privatization program, Finance Minister Muhammad Aurangzeb said there are five power distribution companies to be privatized this year, out of which the sell-side advisers for three are Alvarez & Marsel. He said the Turkish Investment Bank has been entrusted with the task of being the sell-side advisers for the other two companies. 

“Overall, 26 SOEs have been handed over to the Privatization Commission,” Aurangzeb told reporters. “This decision is first made in the Cabinet Committee on SOEs, it then goes to the Cabinet Committee on Privatization, and then its overall approval is given by the prime minister and the cabinet.”

Aurangzeb vowed the government will take the privatization process forward with the same level of transparency as it had exhibited during the PIA sale last year. 

“And this will be taken forward with a lot of speed because we will not stop at 26 SOEs,” the finance minister said. “We will also gradually hand over other state institutions to the Privatization Commission,” he added. 

Speaking further about SOEs and their performances over the years, the minister said losses from the state entities decreased by about Rs74 billion [$264.6 million] over the last three years.

He said SOEs had reported losses of Rs905 billion [$3.24 billion] in 2023, Rs851 billion [$3.04 billion] in 2024 and Rs832 billion [$2.98 billion] in 2025.

Pakistan’s privatization push comes at the back of its efforts to ensure sustainable economic progress after a prolonged macroeconomic crisis that drained its foreign exchange reserves and triggered a balance of payments crisis.