ISLAMABAD, July 4 (Alliance News): Federal Minister for Petroleum Pervaiz Malik has warned that Pakistan could face a surplus of imported Re-Gasified Liquefied Natural Gas (RLNG) if the power sector fails to lift its committed volumes, potentially straining the country’s energy infrastructure and fiscal management.
Speaking to media, Malik said, “There will be no surplus RLNG if the power sector takes its committed volume,” underscoring the need for better coordination between energy sector stakeholders to avoid supply glut and stockpiling issues.
He urged the formation of the Cabinet Committee on Energy (CCOE) based on merit, recommending the inclusion of key ministries like Finance, Power, and Petroleum. “Nominations to the CCOE should be based on merit instead of personal like or dislike,” he remarked.
On oil imports, Malik said Pakistan was open to exploring US crude purchases, pointing to the cost advantage of West Texas Intermediate (WTI) over Brent crude. “We will look to the import of American crude with an open mind,” he said.
Commenting on the Iran border closure, Malik revealed a sharp spike in legal fuel sales in Balochistan — a reflection of previously rampant fuel smuggling. “In June 2024, oil supply in Balochistan was 8,500 tonnes for the month.
After the border closure in June 2025, the same volume was consumed in just one week,” he noted. He said OGRA had been tasked with providing data on Iranian fuel smuggling.
The minister also disclosed that Pakistan is reviewing options for waivers on oil and gas imports from Iran amid regional tensions. Simultaneously, Islamabad and Tehran remain engaged in arbitration proceedings in Paris over the stalled Iran-Pakistan (IP) gas pipeline.
Addressing complications in the gas sector, Malik said the second LNG deal with Qatar had exacerbated Pakistan’s challenges. “If there had not been such an LNG contract, we might not be facing the current situation of default in the gas sector,” he stated, adding that the government was compelled to suspend 300mmcfd of local gas production due to structural issues.
Justifying the recent hike in fixed gas charges, Malik pointed to the burden of subsidies and diverted RLNG usage. “Rs150 billion subsidy to protected gas consumers and Rs250 billion RLNG diversion from power to domestic consumers compelled the government to increase fixed charges,” he said. “We are in an IMF program which wants zero deficit.”
Malik also advocated for the creation of a unified Energy Ministry, calling for greater authority for the Petroleum Division in national energy decisions.
On the international front, he revealed that Pakistan has invited China, Russia, and the United States to invest in the mining sector. “We are offering equal opportunities,” he said, rejecting claims of geopolitical favoritism.
Criticising current policies affecting local refineries, Malik warned that the imposition of regulated margins and zero-rating tax frameworks risked derailing $6 billion in planned investments. “Undue burden should not be put on refineries if the government wants them to invest $5-$6 billion,” he cautioned.
