The government is considering lifting the ban on new gas connections to manage surplus imported LNG, protect pipeline infrastructure, and prevent violations of sovereign LNG supply contracts.
The Ministry of Finance has proposed revisiting the 2022 ban to help absorb excess LNG, which is placing pressure on foreign exchange reserves due to high import costs.
Over 3.5 million gas connection applications are currently pending with SNGPL and SSGCL.
The ban was first imposed in 2009, partially lifted in 2015, and reimposed in 2022 amid worsening supply constraints.
In FY26, 120,000 new gas connections are planned: 86,000 by SSGCL (Sindh and Balochistan) and 35,000 by SNGPL (Punjab and KP), including about 1,000 for commercial and industrial users.
To meet IMF conditions, the government has raised fixed gas charges by 50 percent, increased gas rates by up to 17 percent for industrial, power, and bulk users, and imposed an additional financial burden of Rs. 85 billion for FY26.
This includes Rs. 31 billion in surplus revenue for SSGCL, Rs. 41 billion for SNGPL to offset shortfalls, and Rs. 13 billion in additional GST collection. OGRA’s total determined revenue requirement for FY2026 is Rs. 888.6 billion.
The captive gas levy has sharply reduced demand. SSGCL’s sales to captive power plants fell from 180 mmcfd to 75 mmcfd, and SNGPL’s from 175 mmcfd to 35 mmcfd. The levy does not apply to third-party suppliers.
instead of wasting napotism and coruption use all profits towards digging new oil and gas wells to make country independent in energy and even further exporting it. All those who are obstacles in digging of new wells are working against nations interest while sitting and taking saliries and benifits from public funds.
Such people must be screened out from departments.
Alhamdolilah