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he Petroleum Division, with technical support from the World Bank, has prepared a roadmap to reform Pakistan's downstream gas sector by introducing a competitive market structure. The proposed reforms include the unbundling of Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) into separate transmission, distribution, and gas trading businesses. The roadmap also envisages strengthening the regulatory framework, promoting private sector participation, rationalizing gas pricing mechanisms, and improving the financial sustainability of the gas sector. The reform package is expected to be submitted to the Prime Minister for consideration as part of the government's broader energy sector reform agenda.

Mari Energies Limited has successfully completed Pakistan's first competitive third-party natural gas sale under the Framework for Sale of Gas to Third Parties. The company awarded up to 17.5 MMSCFD of gas from the Spinwam discovery in the Waziristan Block to Universal Gas Distribution Company (UGDC) through a competitive bidding process. The transaction marks the first practical implementation of the government's third-party gas sale framework, allowing eligible exploration and production companies to market a portion of gas from qualifying discoveries directly to private buyers. The initiative is expected to encourage upstream investment, improve gas commercialization, and contribute to the development of a more competitive domestic gas market.

Date: 5 August 2026 OGDCL has signed a Memorandum of Understanding (MoU) with the Pakistan Institute of Nuclear Science and Technology (PINSTECH) to jointly develop technologies for commercial lithium extraction from geothermal brines. The initiative follows OGDCL's recent discovery of high-grade lithium concentrations in geothermal brines at the Wahid Bakhsh Well in Khairpur, Sindh. The collaboration aims to assess the commercial viability of lithium extraction and support Pakistan's entry into the critical minerals sector. OGDCL also plans to evaluate additional geothermal wells to determine the country's broader lithium resource potential, contributing to future energy transition and mineral development initiatives.

Oil & Gas Development Company Limited (OGDCL) has entered into a strategic agreement with Canadian firm Synergetic Oil Tools Inc. to deploy advanced Passive Energy Tool (PET) technology at selected heavy oil wells in Pakistan. The technology is designed to enhance heavy oil production by improving reservoir performance, reducing chemical consumption, minimizing well interventions, and lowering operating costs. The collaboration forms part of OGDCL's broader strategy to enhance domestic hydrocarbon production through the adoption of innovative technologies. Increased heavy oil recovery is expected to strengthen Pakistan's energy security by reducing reliance on imported petroleum products while improving the efficiency of existing producing fields.

The Government of Pakistan has approved a set of amendments to the Pakistan Oil Refining Policy 2023, a decision that marks one of the most consequential interventions in the country’s downstream petroleum sector in recent years. The amendments are designed to unlock investment in refinery modernisation, enable the production of cleaner fuels and reduce the country’s long-standing dependence on imported refined petroleum products. The reform effort has been led by the Federal Minister for Petroleum, Ali Pervaiz Malik, who has consistently maintained that Pakistan cannot secure its energy future without a refining sector that is modern, efficient and commercially viable. The approved amendments translate that position into concrete policy. Pakistan’s refineries have, for years, operated under configurations designed for an earlier era. The result has been a structural imbalance: the country produces more of certain fuel grades than the market requires, while importing large volumes of the refined products it consumes most. Every barrel of refined fuel purchased abroad places pressure on foreign exchange reserves and exposes the economy to the volatility of international markets. "Refinery upgradation projects are capital intensive and long in gestation, and no investor commits to them without a stable and predictable policy environment. By addressing this directly, the Government has removed a critical barrier." Upgrading refinery capacity addresses that imbalance at its source. When domestic refineries are able to process crude into higher-value, cleaner products, the country imports less, retains more value within the national economy and gains a measure of insulation from external price shocks. This is not simply an industrial question. It is a question of economic sovereignty. The environmental dimension is equally significant. The shift towards Euro-V specification fuels, with their substantially lower sulphur content, will improve air quality in urban centres where vehicular emissions remain a persistent public health concern. Cleaner fuel also supports the performance and longevity of modern engines, an increasingly relevant consideration as Pakistan’s vehicle fleet is upgraded. The objectives of the amended policy are clear enough. It encourages refineries to invest in the upgradation and modernisation of existing facilities, it enables and supports the production of cleaner Euro-V specification fuels, it works to reduce reliance on imported refined petroleum products, and it strengthens Pakistan’s long-term energy security alongside domestic refining capacity. Taken together, these measures move the sector from a defensive posture to a developmental one. Rather than managing decline, the policy framework now creates the conditions under which refineries can plan, invest and compete. For the industry, the amendments provide the regulatory clarity and commercial confidence that large-scale capital investment requires. Refinery upgradation projects are capital intensive and long in gestation, and no investor commits to them without a stable and predictable policy environment. By addressing this directly, the Government has removed a critical barrier. The practical effect for refiners is an environment in which modernisation becomes bankable, cleaner fuel production becomes achievable at scale, and the competitiveness of Pakistan’s refining sector improves both at home and across the region. For the country at large, the benefits are broader and longer in horizon. Reduced dependence on imported refined products will ease pressure on the import bill. Better fuel quality will improve environmental performance in ways that can be measured rather than merely asserted. A deeper domestic refining base will leave Pakistan less exposed to the decisions of others. There is also an employment and skills dimension that deserves mention, because refinery upgradation projects generate sustained demand for engineers, technicians, project managers and a wide range of allied services, and the industrial activity associated with them tends to concentrate around refinery sites, spreading economic benefit well beyond the plants themselves. The Federal Minister for Petroleum has repeatedly reiterated that the Government remains committed to advancing policy reforms that encourage investment, strengthen domestic refining capacity and support Pakistan’s long-term energy security. These amendments give practical effect to that commitment. What distinguishes this intervention is its emphasis on consultation. The framework has been shaped through engagement with the industry rather than imposed upon it, an approach that improves both the quality of the policy and the likelihood of its successful implementation. It reflects a wider shift in the Government’s method of working with the productive sectors of the economy: identify the constraint, consult those affected, and legislate a solution that is workable in practice. The decision has been welcomed by the industry. Chairman of the Pakistan Petroleum Exploration and Production Companies Association (PPEPCA), Masood Nabi, and Secretary General Ibrar Khan thanked the Minister for Petroleum for his efforts, noting that the amendments are expected to support refinery modernisation, encourage fresh investment and strengthen Pakistan’s downstream petroleum sector as a whole. PPEPCA looks forward to working closely with the Government and with industry stakeholders to help realise the full potential of these reforms. That expression of partnership is itself a positive indicator, because policy succeeds when those responsible for implementing it on the ground are invested in its outcome. The approval of these amendments lays the foundation for a modern, efficient and sustainable refining sector in Pakistan. The task now moves to execution: converting an enabling framework into operational upgradation projects, cleaner fuel at the pump and a measurably smaller import bill. The direction, however, is settled. Pakistan is moving towards a refining sector that serves the needs of its economy, its environment and its people. For a sector long constrained by uncertainty, that is a substantial step forward. The writer is Secretary General (Pakistan Petroleum Exploration & Production Companies Association) (PPEPCA)

ISLAMABAD – Zubair Kasuri: Pakistan Petroleum Exploration and Production Companies Association (PPEPCA) Chairman Masood Nabi and Secretary General Ibrar Khan have welcomed the government’s approval of amendments to the Pakistan Oil Refining Policy 2023, describing the decision as a major step towards modernising Pakistan’s refining industry and attracting fresh investment. Talking to The News, Masood Nabi lauded the efforts of Federal Minister for Petroleum Ali Pervaiz Malik, saying the minister had demonstrated strong leadership and remained fully committed to addressing the long-standing challenges facing Pakistan’s refining sector. He said the approval of the amendments reflected the government’s resolve to strengthen the downstream petroleum industry and create a more investment-friendly environment. Secretary General Ibrar Khan said the policy amendments would encourage refinery upgradation, facilitate the production of cleaner Euro-V specification fuels and enhance the competitiveness of Pakistan’s refining sector. He appreciated the efforts of Federal Minister Ali Pervaiz Malik, saying the minister had worked tirelessly to resolve key issues faced by the refining industry. “His leadership and commitment have helped remove major policy bottlenecks, paving the way for these important reforms,” he said. Ibrar Khan added that the amendments would reduce Pakistan’s dependence on imported refined petroleum products, improve fuel quality, enhance domestic refining capacity and contribute to the country’s long-term energy security. Both Masood Nabi and Ibrar Khan said PPEPCA looked forward to working closely with the Ministry of Petroleum, the government and industry stakeholders to ensure the effective implementation of the reforms and to help realise the full potential of Pakistan’s refining sector.

An appreciation on behalf of Pakistan Petroleum Exploration and Production Companies Association Some reforms are announced. Others are negotiated. A rare few are simply delivered — quietly, decisively, and against odds that most policymakers prefer not to engage. The downward revision of Pakistan's captive gas levy belongs firmly to that third category. And the credit for it belongs, unambiguously, to one man: Petroleum Minister Ali Pervaiz Malik. Until this month, the Captive Power Plant levy stood at Rs1,303 per mmBtu, anchored to the peak B3 industrial electricity tariff under a methodology that had ceased to function as a price signal. In practice, it had become a structural penalty on industrial gas consumption — pricing efficient plants out of operation, hollowing out gas demand, and pushing Sui company losses past Rs104 billion in the first half of the fiscal year alone. Following Malik's formal proposal during the IMF's third review, the methodology has been recalibrated to a weighted average of peak and off-peak B3 rates. The revised levy now stands at approximately Rs522 per mmBtu — a near 60 per cent reduction in a single move, with relief expected to hold across cycles in the 30 to 60 per cent range. This was not a minor concession. It was the dismantling of a policy instrument that had outlived its original logic. What it means for gas production companies and gas utility companies? For Pakistan's gas exploration and production sector, the previous levy was actively lengthening the circular debt cycle. Industrial demand was being driven off the gas network, indigenous production was losing its paying offtaker, RLNG was being diverted to subsidised consumption, and Sui losses were aging into receivables on E&P balance sheets. Aged receivables become deferred development. Deferred development becomes lost reserves and lost national output. Circular debt, in our industry, is the line between drilling next year's well and walking away from it. For the gas utility companies, the same distortion was equally corrosive: by suppressing high-load industrial offtake, it reduced throughput and system utilisation, worsened revenue recovery, and accelerated the accumulation of unpaid receivables and payables across the chain. It also incentivised inefficient allocation decisions, including RLNG diversion to subsidised segments, thereby heightening the financing gap that ultimately surfaces as circular debt. The recalibrated levy begins to repair that architecture by re-anchoring demand on the network, improving the utilities' cash-flow dynamics, and restoring a more sustainable basis for procurement, dispatch, and settlement. What it means for industrial consumers? For more than two years, captive consumers — particularly in textiles, the country's largest export sector — had been operating at gas prices that priced them out of regional markets. Indian, Bangladeshi, and Chinese competitors were accessing gas at $6–9 per mmBtu, while Pakistani exporters faced effective costs well above that. Captive offtake fell sharply, RLNG surpluses grew, and an $18 billion textile export base came under sustained pressure. It is therefore unsurprising — and entirely deserved — that the All Pakistan Textile Mills Association (APTMA) has publicly issued a thank-you note acknowledging the Petroleum Ministry's efforts, and that the Pakistan Textile Council has expressed its appreciation. When industry bodies that have spent a year writing critical letters shift, in unison, to acknowledgement, the reform has earned that response on its merits. Leadership measured in outcomes The petroleum minister could have lobbied for headlines. He chose technical engagement. He raised the proposal at the third review with documented evidence; the IMF deferred. He returned with sharper data, pressed the case, and converted a deferral into approval — while accepting candidly the conditions attached. That intellectual honesty is what gave the proposal its credibility at the negotiating table. In appreciation On behalf of PEPPCA, Pakistan's gas exploration and production companies, we extend our genuine and considered appreciation to the Honourable Petroleum Minister Ali Pervaiz Malik. His advocacy was patient where it needed to be patient, decisive where decisiveness was required, and unfailingly grounded in evidence. Reform of this scale is never a solo achievement, and the professional teams at the Petroleum Division, the Finance Division, and the regulators deserve recognition for the technical groundwork that supported the case. But it does require an anchor — someone willing to absorb the difficulty and hold the line. Malik has been that anchor. The gas production industry and industrial consumers have duly taken note of this decision. The decision represents a balanced, win–win outcome for all stakeholders by enabling E&P companies to optimise gas production through the restoration and expansion of demand from a segment with the demonstrated capacity and willingness to afford the supply. This, in turn, supports improved cash-flow discipline across the value chain, contributes to the containment of circular debt, and reduces the fiscal and tariff distortions associated with cross-subsidisation. By strengthening the sustainability of the gas market, the decision is expected to support broader industrial activity, protect employment, and generate the consequential economy-wide benefits that follow. PEPPCA records its appreciation and stands ready to support the work that follows. The author is Secretary General of the Pakistan Petroleum Exploration and Production Companies Association (PPEPCA).

In pursuance of the relevant provisions of the Pakistan Petroleum Exploration & Production Companies Association (PPEPCA) Articles of Association (AoA), the Trade Organizations Act, 2013 and the Trade Organizations Rules, 2013, notice is hereby given for the election of Ten (10) Members of the Executive Committee for the term 2026-2028. The tenure of the present Executive Committee, including the Chairman, Senior Vice Chairman and Vice Chairman, shall expire on September 30, 2026. Accordingly, the election process has been initiated to elect the new Executive Committee in accordance with the applicable provisions of the AoA and the Trade Organizations Rules, 2013. The election of the Executive Committee Members shall be held during the 33rd Annual General Meeting (AGM) scheduled for Wednesday, September 23, 2026. In the event that the number of valid nominations exceeds the number of seats available, the election shall be conducted by Secret Ballot during the AGM. The detailed Election Schedule is enclosed as Annex "A", while the List of Eligible Voters is enclosed as Annex "B". Members are requested to carefully follow the timelines specified in Annex "A", as all statutory actions shall be undertaken strictly in accordance with the prescribed schedule. Eligibility to Contest The Managing Director, Chief Executive Officer or Principal Officer of a member company is eligible to contest the election for membership of the Executive Committee, subject to the provisions of the PPEPCA Articles of Association and the applicable provisions of the Trade Organizations Act, 2013 and the Trade Organizations Rules, 2013. Submission of Nomination Papers Nomination papers shall be submitted on the prescribed form attached as Annex "C". Each nomination shall: • be duly proposed and seconded by registered voters of member companies; • be signed by the candidate in token of acceptance; • contain all mandatory information required in the prescribed form; and • reach the PPEPCA Secretariat not later than the close of business on Tuesday, August 25, 2026. Incomplete nomination papers or nominations received after the prescribed deadline shall not be entertained. Election of Office Bearers In accordance with Rule 21(11) of the Trade Organizations Rules, 2013, the Chairman, Senior Vice Chairman and Vice Chairman of PPEPCA shall be elected by and from amongst the newly elected Ten (10) Members of the Executive Committee at the first meeting of the Executive Committee convened after completion of the election process. Authority to Vote Where the Chief Executive Officer of a member company is unable to attend the Annual General Meeting personally, he may authorize another person, in writing, to cast the vote on his behalf. The prescribed Authority Letter is attached as Annex "D" and must reach the PPEPCA Secretariat not later than the close of business on Tuesday, September 8, 2026. National Tax Number (NTN) and Sales Tax Registration Number (STRN) As required by the Directorate General of Trade Organizations, the List of Eligible Voters shall contain the National Tax Number (NTN) and Sales Tax Registration Number (STRN), wherever applicable. Accordingly, member companies that have not already provided these particulars are requested to furnish the same to the PPEPCA Secretariat on or before Friday, July 24, 2026. Eligibility to Vote Only those member companies whose annual membership subscription has been fully paid up to June 30, 2026, and whose names appear in the Final List of Eligible Voters, shall be entitled to participate in the election process. Members are requested to carefully review all enclosed annexures and ensure timely compliance with the prescribed requirements and deadlines to facilitate the orderly conduct of the election process. Should any clarification be required regarding the election process or the enclosed documents, members may contact the PPEPCA Secretariat during office hours.