ISLAMABAD: Federal Minister for Petroleum Ali Pervaiz Malik has announced that the government has successfully halted the accumulation of circular debt in Pakistan’s gas sector, citing key reforms aimed at building a more efficient and sustainable energy system.
He made these remarks at the Pakistan Governance Forum, organised by the Ministry of Planning, Development and Special Initiatives.
Key initiatives include the revival of Cabinet Committee on Energy, chaired by the prime minister, and completion of a holistic planning exercise in collaboration with international consultants Wood Mackenzie. This exercise integrates all energy sources with the Power Division’s Integrated Generation Capacity Expansion Plan (IGCEP).
Malik also noted ongoing efforts to institutionalise the Integrated Energy Secretariat to ensure sustained coordination and long-term strategic planning.
Regarding circular debt, the minister reported that the gas sector’s principal debt decreased from approximately Rs1,831 billion in June 2025 to Rs1,816 billion by September 2025 — achieved without additional budgetary support. He clarified that reported increases in the debt stock primarily reflect accumulated interest and late payment surcharges and confirmed that a comprehensive liquidation plan was being submitted to the prime minister.
Further governance and policy enhancements include an independent study on Unaccounted-for Gas to tighten allowance criteria, updates to petroleum policies and the announcement of a new Tight Gas Policy to bolster energy security. A shale gas pilot project is underway in Hyderabad, and the Directorate General of Petroleum Concessions is being restructured with guidance from the World Bank.
