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Reading: Gas Sector Reforms Target Sui Companies’ Unbundling
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Natural gas pipelines, industrial infrastructure, and a gas burner representing Pakistan's gas sector and energy industry.
PhotoNews Pakistan > Pakistan > Gas Sector Reforms Target Sui Companies’ Unbundling
Pakistan

Gas Sector Reforms Target Sui Companies’ Unbundling

Web Desk
By Web Desk Published August 5, 2026 2 Min Read
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A natural gas processing facility and pipeline infrastructure represent Pakistan's gas sector and energy distribution network.
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ISLAMABAD: Pakistan has finalised a gas sector reforms roadmap that would unbundle the Sui utilities, redesign subsidies and introduce market-based pricing, according to the supplied report.

The plan was reviewed at a meeting chaired by Federal Minister for Petroleum Ali Pervaiz Malik and attended by the World Bank’s country director. The report said the World Bank provided technical assistance and international examples for the proposed changes.

The Petroleum Division said in December 2025 that it was working with the World Bank Country Director for Pakistan, Bolormaa Amgaabazar, on a comprehensive reform roadmap. That work included options to improve efficiency and unbundle the Sui companies.

Under the latest proposal, Sui Northern Gas Pipelines Limited (PSX: SNGP) and Sui Southern Gas Company Limited (PSX: SSGC) would separate their transmission, distribution and energy operations. Both companies currently handle gas transmission and distribution within their respective service regions.

Read: Gas Circular Debt Talks With IMF End Without Deal in Pakistan

The roadmap would also replace broad consumer support with targeted subsidies for eligible households. Pakistan would gradually shift toward a market-clearing mechanism for natural gas prices, although the report did not disclose the proposed formula or transition period.

Officials agreed to strengthen the Oil and Gas Regulatory Authority’s oversight as private companies enter the market. OGRA already works on gas tariffs, third-party access, efficiency benchmarks and the Sui company unbundling agenda

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