World Bank backs Pakistan plan to break up Sui gas monopolies

The government is preparing a World Bank-backed roadmap to restructure Pakistan's natural gas sector by breaking up Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) into separate transmission, distribution, and energy businesses, paving the way for private sector competition.

 

Petroleum Minister Ali Pervaiz Malik said the plan, developed with World Bank technical assistance, will be submitted to Prime Minister Shehbaz Sharif for approval by the end of August, with implementation to follow in phases.

 

The reforms would establish a competitive gas market under an expanded regulatory role for Ogra, while also overhauling the subsidy framework, improving pricing transparency, and working toward a market-based gas pricing mechanism.

 

The government expects the overhaul to strengthen energy security, improve the financial sustainability of the Sui companies, reduce cross-subsidies, and attract private investment across the gas sector.