Federal Petroleum Minister Pervaiz Malik has cautioned that Pakistan risks an RLNG surplus unless power plants honor their purchase commitments. With the government exploring diversion strategies to prevent stockpiling, Malik emphasized urgent improvements in inter-ministerial coordination. He stressed merit-based restructuring of the Cabinet Committee on Energy (CCOE), advocating mandatory representation from Finance, Power, and Petroleum ministries to streamline decision-making.
Malik disclosed startling data showing Balochistan’s legal fuel consumption jumped from 8,500 tonnes monthly to the same volume weekly after the Iran border shutdown—proof of rampant smuggling. A ministerial committee is weighing potential waivers for Iranian oil/gas imports amid tensions, even as the IP pipeline arbitration continues in Paris. On crude imports, Malik signaled openness to US oil, citing WTI’s competitive pricing versus Brent.
The minister acknowledged Qatar’s second LNG contract exacerbated gas sector woes, contributing to domestic production cuts of 300mmcfd. Defending recent fixed charge hikes, Malik cited Rs400 billion in subsidies and IMF-mandated fiscal discipline. He backed a unified Energy Ministry proposal while criticizing refinery policies that threaten $6 billion in upgrades through regulated margins and tax uncertainties.
Pakistan has invited equal-opportunity investments from China, Russia, and the US in mining, rejecting favoritism claims. Malik reiterated the Petroleum Division’s pivotal role in energy governance, linking policy stability to attracting foreign capital and resolving sectoral crises.