ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb on Tuesday said that the country has achieved notable progress in the oil and gas sector over recent years, citing increased foreign interest and policy reforms aimed at revitalising exploration and production activities.
“In the Exploration and Production (E&P) sector, there has been considerable interest from international companies—particularly Turkish Petroleum—in competitive bids,” the Finance Minister said during the budget speech 2025-26.
“This marks a significant foreign investment in the onshore sector after a long period,” he shared.
He told the National Assembly that after more than a decade, the 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 USD 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 added that amendments to the Petroleum Policy 2012 and the Tight Gas Policy, including better pricing and various policy reforms, have enhanced competitiveness in the sector.
Muhammad Aurangzeb explained that in 2023, momentum was observed in the refining and downstream segment through the Pakistan Refining Policy, which facilitated Euro-V upgrades and capacity expansions.
He noted steps toward the deregulation of fuel prices aimed to enhance competition and encourage private investment.
The federal budget for the fiscal year 2025–26, has a total outlay of PKR 17.573 trillion, down 7% as compared to the PKR 18.9 trillion budgeted outlay of FY25.
