Islamabad: Local and international companies are scheduled to invest in Pakistan oil and gas exploration and production sector (E&P) more than $ 5 billion in the energy sector in the country over the next three years.
This attention follows the recent amendments to the oil policy and the introduction of a narrow gas policy, providing better incentives and a more suitable organizational framework.
These reforms are expected to increase local energy production and attract local and foreign investment. Official documents show that the adjustments to gas prices last year have improved the financial health of entities such as sui nortern Gas Pipeines Limited (SNGPL) and Sui Southern Gas (SSGC), ensuring reliable gas supplies for industrial and local users.
The insertion of the RLNG (liquefied natural gas) reducing the definition teams, which improved the financial affairs of the energy sector. Gas customization of newly discovered reserves also helped manage the effect of the natural depletion and meet the demand during the winter months.
A great development came with the signing of the Union Agreement for the Machike-Thalian-Taru Jabba Oil draft on September 4, 2024, indicating the government’s commitment to self-sufficiency.
The Petroleum Department focused on improving the investment climate through policies aimed at increasing exploration and production. Reforms include allowing E&P companies to sell up to 35 % of their production to third parties, thus liberalizing the market and enhancing cash flow.
Encourages the creation of a high -risk exploration area, area 1 (f), and narrow gas policy 2024 gas exploration.
International consulting companies such as DeGoleer, MacNageton and Wood Mackeenzie help integrate geological and geophysical data (G & G) and develop display tours abroad. The Petroleum Department worked with the World Bank to develop the monetary flow monitoring system and the circular debt management board.
The Petroleum Department has given priority for gas allocation reforms to ensure stable supplies for industries and local users. The regulations also imposed to reduce illegal import and sell dangerous petroleum products.
In the mineral sector, consultants are aligned with laws with international standards, with the expectation of the completion of mid-2015. The resolution of the Reko Diq conflict has caused attention from Saudi investors, while projects in coal mutation and exploring gemstones create economic opportunities, especially in Gilgit-Baltistan and Balochistan.
The Pakistan Projects (GSP) has set 51200 square kilometers and conducted six geophysical surveys, providing important data for metal exploration. These projects have created jobs and support for social and economic development in remote areas.
From January 2024 to December 2025, Pakistan collected rupees. 54.7 billion in oil royalties, rupees. 1.46 billion in gas royalties, rupees. 2.07 billion in production rewards. The government has also devoted rupees. 1.16 billion to expand the scope of boost within 5 km of productive and RS fields. 10 billion to cover the RLNG supply teams for local consumers.
SSGCL and SNGPL have expanded their networks with projects such as the Shahid Fahd Ashqaq project 230 km and added more than 20,000 new gas contacts, which improving the infrastructure and reaching the country level.
With these reforms, Pakistan’s energy sector is placed for growth, which contributes to energy security and economic development.
