What happened
Petroleum Minister Ali Pervaiz Malik said on 9 August 2026 that Turkish Petroleum would soon begin offshore drilling operations in Pakistan’s territorial waters, a step he said could open the way for significant foreign investment in the energy sector, according to The Express Tribune.
Addressing a press conference, the minister said the government was committed to strengthening energy security, attracting investment and ensuring transparency in the petroleum sector. He also announced that tenders for liquefied petroleum gas would open on Monday and that arrangements had been made to issue new gas connections for consumers.
Why it matters
Mr Malik set out the scale of Pakistan’s energy challenge, saying the country imports about 90 per cent of its energy needs while domestic oil production stands at roughly 70,000 barrels per day against demand of about 500,000 barrels per day. He stressed the need to accelerate indigenous oil and gas exploration to reduce reliance on imports.
The minister said Prime Minister Shehbaz Sharif and Chief of Defence Forces Field Marshal Asim Munir had tasked a leading international company with preparing a comprehensive roadmap for the energy sector, which would be presented to the national leadership in the coming months. He added that the federal cabinet had approved a refinery policy and that the government was working to resolve long-standing financial problems in the petroleum sector, saying the flow of circular debt had been halted and that efforts were under way to clear liabilities inherited from previous administrations.
The wider context
Mr Malik attributed recent financial pressures and rising petroleum prices to tensions in the Middle East, saying the Iran-United States conflict had caused unprecedented increases in crude oil and petroleum product prices on global markets. He said the government had still ensured uninterrupted fuel supplies and had tried to shield consumers from the full impact of international prices.
He said the prime minister had introduced a transparent petroleum pricing mechanism, with pricing calculations published on the Oil and Gas Regulatory Authority website. Malik said in July that Ogra would fix petrol and diesel prices daily, and in June that Pakistan was weighing cheaper oil and gas imports from Iran. The minister also congratulated the nation ahead of the country’s 79th Independence Day on 14 August, saying Pakistan’s next goal after recent diplomatic and strategic successes was sustainable economic progress, and repeated his government’s assessment that the recently signed Makkah defence agreement was a matter of national pride.
