Pakistan’s energy sector is spiraling into deeper dysfunction as key ministries clash instead of cooperating—exposing a leadership void and reckless policymaking. At the heart of the latest fiasco is the power minister’s unilateral push to renegotiate RLNG contracts with Qatar, an ill-timed gamble aimed at replicating previous IPP settlements—despite lacking diplomatic or strategic groundwork.
Read More: Enter 2025: Pakistan’s Power Sector Sacrificed at the Altar of IMF Compliance
In a rare public rebuke, the petroleum minister flatly rejected the move, accusing the Power Division of shirking responsibility for RLNG supply failures. He further reminded that the Qatar LNG deal isn’t even up for revision until 2026, branding the initiative premature, misinformed, and diplomatically dangerous.
This infighting adds another layer of crisis to an already collapsing energy system. RLNG sits unused, grid demand continues to fall, and pipeline pressure mounts—yet the Power Division remains clueless. Even after urging captive power users to shift to the national grid, RLNG offtake has stagnated, wasting costly imported gas.
The power minister clings to the economic merit order (EMO) to justify his stance, but observers say this is selective logic. Just months ago, his division enforced peak-hour surcharges beyond IMF thresholds—policies that contradict his current position and expose a chronic lack of coherence.
Meanwhile, public outrage grows as Discos under his ministry are accused of fleecing consumers by nearly Rs240 billion in overbilling—a scandal met with calculated silence. The ministry’s refusal to acknowledge or rectify the abuse reflects blatant disregard for accountability.
Adding to the recklessness is the idea of pressuring Qatar, a sovereign and long-term LNG partner. Energy analysts warn this could backfire catastrophically, damaging Pakistan’s credibility in global energy markets. Similar strong-arm tactics failed with Chinese IPPs, who stood their ground and refused any waivers on late payment penalties.
In short, Pakistan’s energy governance has become a battlefield of egos, bad math, and dangerous brinkmanship—threatening not just the economy, but its global standing.