Oil and gas sector sees significant progress, says minister

ISLAMABAD: Federal Minister for Finance Senator Muhammad Aurangzeb on Tuesday said that over the past few years they have made significant progress in the oil and gas sector through diversification and strategically targeted reforms.

During the budget speech 2025-26 on Tuesday he said, “In the exploration and production (E&P) sector, there has been considerable interest from international companies -- particularly Turkish petroleum -- in competitive bids.”“This marks a significant foreign investment in the onshore sector after a long period,” he shared.

Aurangzeb informed that after more than a decade, Pakistan Offshore Exploration Bid Round 2024 has been launched, reviving E&P activities in the offshore sector.Meanwhile, multiple oil and gas discoveries have contributed to improved energy security and import substitution.

“E&P companies have expressed their commitment to invest over $5 billion in future oil and gas exploration. Additionally, efforts have been focused on enhancing the capacity of existing fields through the use of modern technologies,” he further shared.

He told that amendments to the Petroleum Policy 2012 and the Tight Gas Policy, including better pricing and various policy reforms, have improved competitiveness in the sector.

In 2023, momentum was observed in the refining and downstream segment through the Pakistan Refining Policy, which facilitated Euro-V upgrades and capacity expansions.Steps towards the deregulation of fuel prices aimed to enhance competition and encourage private investment, Aurangzeb explained.