Petroleum Minister Ali Pervaiz Malik announced a shift in Pakistan’s energy strategy on Sunday. The country will begin selling excess Liquefied Natural Gas (LNG) on the international market starting January 1, 2026, to address a costly surplus and reduce mounting circular debt.
The minister explained that Pakistan imports LNG from Qatar and the Italian firm Eni. However, reduced use in power generation in recent months created an unexpected surplus. The government then diverted this expensive imported gas to the domestic sector, worsening financial losses.
Minister Malik stated this diversion has driven up circular debt in the gas sector. He reported total losses of approximately Rs1,000 billion since 2018-19.
“From January 1, we will sell this excess fuel in international markets and reduce our burden while limiting the loss caused by it,” the minister declared. This move represents a pragmatic step to monetise stranded assets and improve fiscal management.
Read: Pakistan Urges Qatar to Divert 24 LNG Cargoes in 2026 Amid Oversupply Crisis
Alongside the LNG export plan, Malik outlined several domestic measures. He confirmed that substandard gas cylinders would be replaced in response to public demand. The government is also providing 250,000 to 300,000 new gas connections to offer public relief during winter.
On the investment front, Malik noted a Turkish petroleum company will soon open an office in Islamabad, creating local jobs. He also announced an upcoming visit by an Azerbaijani delegation to discuss reducing reliance on imported oil and gas.
The minister highlighted ongoing infrastructure work, including a new pipeline from Maachike to Thallian. He stated Pakistan is closely observing the global energy transition from oil to electricity.
A major focus remains on mineral exploration. Work on copper exploration is accelerating, with an expected $3.5 billion in investment. International institutions are also preparing major investments in Balochistan.
Malik gave a key update on the flagship Reko Diq project. Its inauguration ceremony will be held at the Prime Minister’s Office within two months. Pakistan will soon begin exporting 400,000 tons of copper, with several related projects underway.
