The Pakistani government has intervened in the domestic energy market by mandating a fixed supply price of Rs2,000 per million British thermal units (MMBtu) for local gas delivered to regasized liquefied natural gas (RLNG) power plants.
This directive replaces the previous import-linked rate of Rs3,500 per MMBtu, effectively imposing a significant subsidy on power generators facing acute fuel shortages.
The policy shift comes as the country grapples with a severe LNG shortage triggered by escalating geopolitical tensions between the United States and Iran.
Disruptions in global shipping routes and heightened risk premiums have constrained LNG availability, forcing Pakistan to rely more heavily on its domestic gas reserves to keep power plants operational.
By capping the input cost for these facilities, Islamabad aims to prevent a cascade of generation outages that could destabilize the national grid.
However, the move introduces new fiscal pressures.