Pakistan mulls removing ban on new gas connections for domestic consumers

In what could be welcome news for millions of households across Pakistan, the government is reportedly moving toward lifting the longstanding ban on new domestic gas connections.

According to informed sources, the Petroleum Division has submitted a formal summary recommending the removal of the ban and the resumption of new connections nationwide.

Imported gas to power new connections

The proposed plan involves supplying new domestic consumers with imported liquefied natural gas (LNG), rather than the country’s depleting natural gas reserves. Sources indicate that the decision has been made in light of growing demand and continued shortages in the domestic supply network.

However, the relief comes at a cost. The fee for a new LNG connection is expected to be significantly higher than traditional natural gas connections.

Sources say the cost of a new imported gas connection may go as high as PKR 41,000 — several times more than the current fee for conventional gas hookups.

Moreover, the price of imported gas itself is also expected to be considerably higher than the rate charged for natural gas.

New domestic gas connections have been largely suspended in Pakistan since 2021 due to a severe shortage in supply, particularly during peak winter months. The ban was initially introduced as a temporary measure to prioritize existing consumers and stabilize national gas distribution.

Over time, growing demand and insufficient investment in domestic exploration made the ban more permanent, frustrating millions of pending applicants and prompting calls for reform.

The Petroleum Division's summary has been forwarded to the federal cabinet for final approval. Once cleared, the issuance of new gas connections is expected to begin across the country.

Experts say while the resumption of connections is a positive step, the reliance on imported gas will place additional financial burden on consumers. Nonetheless, it marks a shift toward accommodating unmet residential demand.

“The move shows the government’s willingness to address public needs, even if it comes at a higher cost,” said energy policy analyst Rizwan Memon. “It also highlights the urgent need for long-term energy diversification.”