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KARACHI: Pakistan’s state natural gas producer OGDCL is preparing to raise output for the first time in recent years as the ongoing conflict in the Middle East choked supply, its managing director said. High electricity tariffs and rapid rooftop solar adoption have reduced demand for natural gas in recent years, forcing Pakistan to renegotiate long-term liquefied natural gas (LNG) import contracts with Qatar and domestic producers to cut output. On Monday, Qatar halted LNG production after Iran targeted the country following the U.S.-Israeli strikes over the weekend. Here are the new developments: OGDCL aims to raise natural gas output by 5% to 865 million cubic feet per day. OGDCL strikes major oil & gas discovery in Kohat The company also plans to boost crude oil production by 14% to 40,000 barrels per day, as the conflict has disrupted shipping through the crucial Strait of Hormuz. OGDCL’s Managing Director, Ahmed Lak, emphasised potential further increases with new discoveries. “This potential can be fully monetised subject to offtake by the buyers,” Lak said. Pakistan is exploring the option of reducing LNG terminal regasification due to undelivered Qatari cargoes, industry sources said. The move could relieve pressure on Pakistan’s foreign exchange reserves, sources added.

ISLAMABAD: Petroleum Minister Ali Pervaiz Malik confirmed that Saudi Arabia has pledged to support Pakistan’s energy needs by supplying oil through the Port of Yanbu on the Red Sea. The assurance comes at a time when global energy markets are grappling with the impact of the ongoing closure of the Strait of Hormuz. In a meeting on Wednesday with Nawaf bin Said Al-Malki, Saudi Arabia’s Ambassador to Pakistan, the two leaders discussed a range of bilateral issues, focusing on strengthening cooperation between the two nations. Malik briefed the ambassador on the current state of global energy markets and the challenges posed by the closure of the Strait of Hormuz, a vital shipping lane that carries a significant portion of Pakistan’s oil imports. He highlighted that Pakistan is closely monitoring the evolving situation, as the closure threatens the stability of its energy supplies. Read More: Country has 28 days of fuel "The support of brotherly nations like Saudi Arabia is crucial to Pakistan, especially during such challenging times," Malik remarked. He reassured that the Pakistani government is taking active measures to ensure a continuous energy supply for the country’s citizens. During the meeting, the Saudi Ambassador reaffirmed the kingdom's commitment to Pakistan, offering assurances that oil supplies through the Port of Yanbu would be secure. Malik informed that one vessel has been assured dispatch from Pakistan to the Port of Yanbu to lift crude oil for Pakistan. He expressed hope that future shipments would be prioritised for Pakistan. Ambassador Al-Malki, acknowledging the growing situation, said, “Saudi Arabia is fully aware of the circumstances and stands firmly with Pakistan to meet any urgent energy needs." He stressed that the strong ties between the two countries would continue to be a source of support, particularly during these difficult times.

Oil and Gas Development Company Limited (OGDCL), one of Pakistan’s largest exploration and production (E&P) companies, has made significant oil and gas discoveries at its Baragzai X-01 (Slant) exploratory well in Kohat, Khyber Pakhtunkhwa. The listed E&P disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Wednesday. “We are pleased to inform that OGDCL, operator of Nashpa Exploration License (65% working interest), together with its joint venture partners - Pakistan Petroleum Limited (PPL) (30%) and Government Holdings (Private) Limited (GHPL) (5% carried interest) - has made an oil and gas discovery over lockhart limestone at its exploratory well Baragzai X-01 (Slant), located in District Kohat, Khyber Pakhtunkhwa,” read the notice. OGDCL shared that during cased-hole Drill Stem Test (DST-05) in Lockhart Limestone, the well flowed at a rate of 3,765 barrels of oil per day (bpd) and 11.2 million standard cubic feet per day (mmscfd) of gas, through a 32/64“ choke at a wellhead flowing pressure of 4,080 psig. “Baragzai X-01 (Slant) well was spud-in on December 30, 2024 as an exploratory well in the Nashpa Exploration License to test the hydrocarbon potential of Lockhart, Hangu, Lumshiwal, Samana Suk, Shinawari, Datta and Kingriali formations. “The well was successfully drilled down to a total depth of 5,170 meters into the Kingriali Formation. Based on the wireline logs evaluation, four cased hole drill stem tests were earlier conducted in Kingriali, Datta, Samana Suk + Shinawari and Hangu + Lumshiwal formations, which also resulted in oil and gas discoveries.” OGDCL shared that the latest oil and gas discovery will contribute toward mitigating the energy supply-demand gap through indigenous resources and will add to the hydrocarbon reserves base of OGDCL, its joint venture partners, and the country.

ISLAMABAD: The government has designated Shahzad Iqbal, Member (Gas), as Vice-Chairman of the Oil and Gas Regulatory Authority (OGRA) with effect from February 23, 2026, in a move seen as significant for the country’s energy regulatory landscape. The appointment was notified by the Cabinet Division under Section 3(13) of the Oil and Gas Regulatory Authority Ordinance, 2002 (No. XVII of 2002). The notification will be published in the next issue of the Gazette of Pakistan. Shahzad Iqbal, who has been serving as Member (Gas) at OGRA, will now assume the additional responsibility of Vice-Chairman at a time when the authority is dealing with key regulatory matters, including gas pricing, supply management and oversight of transmission and distribution companies. As Member (Gas), he has been involved in regulatory oversight of the natural gas sector, including tariff determinations, compliance monitoring and coordination with stakeholders in the upstream and downstream segments. His elevation to Vice-Chairman places him in a key position within the authority’s decision-making structure. The notification further states that, upon the appointment of the Chairman of OGRA, he will cease to hold the office of Vice-Chairman in line with statutory provisions governing the authority’s composition. Copies of the notification have been forwarded to the Prime Minister’s Office, the Establishment Division and the Petroleum Division, among other relevant offices. OGRA, the country’s oil and gas regulator, determines consumer gas tariffs, regulates LNG operations, oversees oil marketing companies and monitors compliance across Pakistan’s petroleum supply chain. The designation of a Vice-Chairman from within the authority is expected to ensure continuity in regulatory decision-making.

ISLAMABAD: Local gas curtailment has surged to 350 million cubic feet (MMcf) as pipeline linepack ballooned to 4.9 billion cubic feet on Friday, following a steep cut in RLNG offtake by the power sector to just 122 million cubic feet per day (MMcfd). “The drop in consumption has upset the system balance, forcing authorities to throttle indigenous gas production to manage pressure,” officials at the Petroleum Division told this scribe. The government plans to divert 35 LNG cargoes to the international market in 2026 — 24 under long-term supply arrangements with QatarEnergy and 11 from Eni. No cargo was diverted in January or February 2026. However, diversions will commence in March, beginning with one ENI cargo. Officials said curtailment had already reached 250MMcfd before being raised to350 MMcfd to contain mounting linepack pressure. Exploration and production (E&P) companies have expressed alarm over repeated shutdowns of local gas fields, cautioning that some reservoirs, once closed, may not regain natural pressure.

ISLAMABAD: By transitioning fertilizer production onto a standalone gas supply infrastructure, the government has addressed critical vulnerabilities that have long plagued the production cycle of the critical agricultural input, said Ibrar Khan, Secretary General of the Pakistan Petroleum Exploration and Production Companies Association (PPEPCA). This strategic policy intervention established a dedicated Mari-based gas supply system, marking a decisive shift toward a long-term sustainability in domestic urea production through cabinet’s ratification of the Economic Coordination Committee’s decision is positive step, he said while talking to Business Recorder. Under the approved arrangement, gas resources from Ghazij/Shawal discoveries will be systematically allocated among three major fertilizer plants. Fauji Fertilizer Company (Port Qasim) has been allocated 104 mmcfd of raw gas, Fatima Fertilizer (Sheikhupura) will receive 68 mmcfd of raw gas, meanwhile, Agritech (Daudhkhel) has been allocated 50 mmcfd of raw gas. The respective fertilizer companies shall invest in installing facilities for gas processing and compression, for injection and transportation of gas in Sui companies’ network to their respective plant sites. This substantial capital commitment underscored the industry’s confidence in the government’s long-term vision, he added. While this arrangement involved the deallocation of gas volumes from Sui Company, he said, the transmission companies remain integral beneficiaries of this policy framework. The fertilizer customers will utilize the existing Sui companies’ extensive pipeline network infrastructure for gas transportation, ensuring that SNGPL and SSGC continue to generate substantial revenue streams through Return on Assets (ROA) and capacity charges under the third-party access regime. This arrangement transforms the Sui companies’ role from direct gas suppliers to essential infrastructure service providers, guaranteeing regulated returns on their transmission assets while reducing their supply obligation risks, thereby securing their financial sustainability under this new paradigm. “The successful formulation and implementation of this policy framework merits special recognition for the tireless efforts of the Petroleum Minister, Ali Pervaiz Malik. Under his stewardship, the ministry has demonstrated exceptional strategic acumen in identifying sustainable solutions to Pakistan’s energy-agriculture nexus. His commitment to balancing competing stakeholder interests, from gas producers and transmission companies to fertilizer manufacturers and ultimately, the farming community, has been instrumental in forging this consensus,” the secretary general said. The minister’s forward-looking approach extends beyond immediate supply considerations. By championing bilateral Gas Sale and Purchase Agreements (GSAs) with Mari Energies and ensuring robust third-party access arrangements with Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) under the TPA Rules 2018 and Pakistan Gas Network Code, he has established a transparent, rules-based framework that will serve as a template for future energy sector interventions, he said. Copyright Business Recorder, 2026

ISLAMABAD: The counsel of Secretary Revenue Division argued that Section 4-C of the Income Tax Ordinance (ITO) falls squarely within Parliament’s exclusive taxing authority under Article 77 read with Entry 47 of the Federal Legislative List. A three-judge bench of the Federal Constitutional Court, headed by Chief Justice Amin-ud-Din Khan on Monday heard the FBR appeals against the judgments of Sindh, Lahore and Islamabad High Courts regarding levy of Section 4C (Super Tax), inserted in the Income Tax Ordinance (ITO), 2001 through Finance Act 2022-23. The FBR counsels – Asma Hamid and Hafiz Ahsaan Ahmed Khokhar – and Additional Attorney General for Pakistan Aamir Rehman have completed their arguments. It is expected that the bench after hearing the arguments of the lawyer of the taxpayers from Karachi may reserve judgment today (27th January). At the conclusion of proceedings, Advocate Saad Hashmi submitted before the bench that Makhdoom Ali Khan also likes to make submissions, and requested the Court to grant him sometime to rebut the contentions of the department’s lawyers. Justice Amin said they have already heard Makhdom, and asked Hashmi to tell Makhdoom to file a written submission. When Hashmi insisted, the bench then agreed to give 15 minutes to Makhdom to make oral submission on Tuesday. Hafiz Ahsaan Ahmad Khokhar, appearing on behalf of the Secretary Revenue Division, Federation of Pakistan, and the Federal Board of Revenue (FBR), presented comprehensive constitutional arguments regarding the imposition of Section 4-C. He submissions in T.C. No. 1031/2025 along with 225 connected matters, including 71 intra-court appeals, all transferred to the Constitutional Bench under Article 186-A of the Constitution, and now being heard following the Twenty-Seventh Constitutional Amendment. Khokhar maintained that Super Tax is a tax on income, not a fee or cess, and therefore fully within legislative competence. He argued that multiple fiscal levies on the same subject are constitutionally permissible where each is enacted under valid statutory authority. He submitted that Super Tax is expressly included within the definition of ‘tax’, making it an additional charge on high-income earners, akin to surcharge or advance tax, and not a parallel or independent impost. Khokhar opposed taxpayers’ objections on the maintainability of the appeals, saying under Article 99 of the Constitution and the Rules of Business, 1973, taxation and fiscal litigation fall within the exclusive domain of the Revenue Division and FBR, and revenue litigation is expressly excluded from mandatory consultation with the Ministry of Law and Justice or the Attorney General’s Office. Acts by Commissioners Inland Revenue, he added, are acts of the Federation itself, enjoying a strong presumption of legality. He further submitted that the federation and the FBR lawfully filed appeals against the Islamabad High Court judgments on Super Tax (4C), raising substantial constitutional and fiscal questions. Justice Syed Hasan Azhar Rizvi questioned whether any power was delegated to Commissioner-Inland Revenue to filed petition before the High Court and the Supreme Court? The lawyer argued that by Article 186-A and the 27th Amendment, the cases were automatically transferred to the Federal Constitutional Court, requiring no fresh authorization. He submitted that under Rule 14-A read with Entry 35 of Schedule II of the Rules of Business, 1973, the Revenue Division and its attached department, the Federal Board of Revenue, hold exclusive responsibility for the administration, enforcement, and protection of federal taxes and revenues, which necessarily includes the power to initiate, prosecute, defend, and pursue litigation arising from fiscal statutes; without such litigation authority, the statutory allocation itself would be rendered ineffective. Criticiwing the High Courts’ judgments, the counsel submitted that they failed to adhere to the settled principles governing the interpretation of the vires of law. The constitutional test for judicial review of legislation, he argued, is limited to examining: (i) whether Parliament possessed legislative competence, and (ii) whether the enactment transgresses any express constitutional prohibition. Khokhar emphasised that judicial review cannot extend to reassessing the wisdom, necessity, or fairness of fiscal measures. He added that the doctrine of “reading down” is meant only to preserve constitutionality, not to rewrite, reconstruct, or substitute the language of Parliament. By overstepping into fiscal policy— an area constitutionally entrusted to the Legislature and Executive— the High Courts, he contended, transgressed the separation of powers and displaced the will of the people as expressed through their elected representatives. He further stressed that financial enactments occupy a distinct constitutional footing, being the primary instrument through which the State mobilises resources and frames economic policy. Fiscal statutes involve complex economic assessments, distributive choices, and revenue exigencies, requiring judicial restraint and deference to legislative wisdom, as courts are institutionally unsuited to evaluate macroeconomic policy. Rejecting the double taxation argument, he submitted that Section 4-C operates as a distinct charging provision “in addition” to normal income tax under Section 4, imposing an additional fiscal burden rather than re-taxing the same income. He clarified that a “Special Tax Year” refers to self-contained or year-specific fiscal regimes, which do not limit Parliament’s authority to levy Super Tax within the ordinary tax year. Addressing reading down, past and closed transactions, and retrospectivity, the counsel emphasised that the levy of Super Tax under the Finance Act, 2022 was prospective; lawfully applicable to Tax Year 2022, as no vested right accrues until the return filing date under Sections 114 and 120 of the Ordinance. Fiscal statutes, unlike criminal laws, may validly operate retrospectively to meet revenue exigencies. Khokhar, concluding his arguments, asserted that the High Courts’ judgments reflect judicial overreach into fiscal and policy domains, contrary to the principles of separation of powers. He prayed that the judgments be set aside, and that Section 4-C of the ITO, 2001 be upheld as intra vires the Constitution, lawful, and consistent with principles of taxation, distributive justice, and constitutional governance. Copyright Business Recorder, 2026

A three-member bench, headed by Chief Justice Aminuddin Khan, heard the case. During the proceedings, senior counsel Makhdoom Ali Khan, representing various companies, completed his rebuttal arguments, formally bringing the hearing phase to an end. While addressing the courtroom, Chief Justice Aminuddin Khan observed that the bench would make an effort to announce a short order on the same day. He added that if it was not possible to do so, a brief verdict would be issued the following day, urging all parties to wait for the official order. The Super Tax case involves key constitutional and financial questions related to taxation authority and its impact on the corporate sector. The court’s upcoming decision is expected to carry significant implications for revenue collection, corporate compliance, and future fiscal measures, particularly at a time when economic stability remains a priority for the government. Super tax cases moved to constitutional bench Legal experts believe the verdict could set an important precedent regarding the balance between state taxation powers and the rights of businesses under constitutional law.