Pakistan’s Energy Crisis Deepens: Gas Curtailments and Controversial Leadership in the Petroleum Sector Causing Huge Loss to National Exchequer

Special Report:
Pakistan’s energy sector is spiraling into chaos as local and international investors express mounting frustration over significant gas curtailments and mismanagement under the leadership of the Ministry of Energy (Petroleum Division).
At the heart of the controversy is the current Director General of Petroleum Concessions (DGPC), Mr. Riaz Ali, a junior Grade 19 officer, whose appointment on an ad hoc basis has raised eyebrows across the board. Critics, including members of Pakistan’s Parliament, have questioned his competency and the motives behind his appointment. The situation, coupled with persistent gas curtailments, has brought Pakistan’s already struggling energy sector to a breaking point.
The Curtailment Crisis: Local Gas Production Under Siege Pakistan’s indigenous gas production is facing drastic reductions. Critical fields, which form the backbone of the country’s energy needs, are being curtailed at an alarming rate.
The data paints a bleak picture:
• Sui (SML): Reduced by 50 MMCFD • Qadirpur: Reduced by 25 MMCFD • Mari (Ghazij + HRL): Reduced by 70 MMCFD • Mari-GTH: Reduced by 30 MMCFD • Nashpa: Reduced by 45 MMCFD • Togh: Reduced by 15 MMCFD • Dhok Hussain: Reduced by 10 MMCFD • Tolanj: Reduced by 4 MMCFD • MOL: Reduced by 80 MMCFD

Curtailments to Favor LNG Imports?
The most troubling aspect of this gas curtailment crisis is the alleged motive behind it. Industry insiders allege that the curtailments are being deliberately imposed to make room for expensive LNG imports, particularly from Azerbaijan’s SOCAR. This strategy is seen as a direct affront to local and international investors in Pakistan’s upstream energy sector, who have consistently voiced their discontent. The forced reduction of indigenous gas is not just an economic blunder; it is a strategic misstep. Pakistan’s reliance on LNG imports comes with a heavy price tag, both financially and geopolitically, as the country becomes increasingly dependent on foreign suppliers.
Leadership Under Fire:
Parliamentary Backlash The controversial leadership of DGPC Riaz Ali has further inflamed the situation. Under his watch, the energy sector has faced its worst challenges in decades. During a Parliamentary Committee meeting last Thursday, Quratul Ain Marri, the appointment of Riaz Ali was called out as unjustified. Marri’s strong condemnation of the Ministry’s ad hoc arrangements underscored the widespread dissatisfaction: “We will not support ad hoc arrangements of the ministry for appointing a 19-grade officer as acting DG (PC), and he should be replaced with a senior one,” she said. The Chairman of the Committee issued a ruling, recommending that the Petroleum Division appoint a Grade 20 officer as DGPC before the next meeting, signaling a growing consensus that Riaz Ali’s tenure must end.
Investor Confidence in Jeopardy
Leading energy companies, including MOL Group, OGDCL, and Pakistan Petroleum Limited (PPL), have all reported substantial losses due to forced gas curtailments: • MOL Group: Facing production curtailments of 110 MMCFD in the Tal Block, MOL has reported risks of permanent reservoir damage and severe productivity deterioration due to liquid loading. • OGDCL: Over the past eight weeks alone, OGDCL has suffered a revenue loss of approximately $8 million, with curtailed production of 1,461 MMCFD of gas, 26,394 barrels of oil, and 1,391 MT of LPG. • PPL: The company has highlighted the adverse impact of curtailed production on field development plans and operational longevity. The persistent curtailments, combined with the lack of a clear resolution, have created a toxic environment for investment, with stakeholders losing faith in the sector’s governance.
Pakistan’s energy crisis is not just a technical issue; it is a reflection of systemic mismanagement and misplaced priorities. Without swift and decisive action, the consequences will be dire—not just for the energy sector, but for the country’s economy and its people.