Pakistan’s liquefied natural gas (LNG) supplies for power generation are currently unavailable under force majeure conditions, officials told the National Electric Power Regulatory Authority during a public hearing, raising fresh concerns over the country’s energy security.
Authorities said LNG deliveries could not be utilized for electricity generation due to circumstances beyond the control of contracting parties. However, they reassured regulators that imported coal supplies, mainly from South Africa and Indonesia, remain stable despite the disruption.
LNG-based power plants contribute over 4,500 megawatts to Pakistan’s electricity grid and are considered among the most efficient thermal generation sources. Their unavailability is therefore expected to put additional pressure on the power system.
The disruption is linked to escalating tensions in the Middle East involving the United States, Israel, and Iran, which have unsettled global energy markets. Shipping disruptions through the Strait of Hormuz, a key route for global energy trade, have further intensified supply uncertainties. At the same time, production stoppages in Qatar, a major LNG exporter, have tightened global availability following a force majeure declaration affecting a significant share of supply.
Despite the LNG shortage, officials said alternative fuels are being used to maintain power generation. Central Power Purchasing Agency CEO Rehan Akhtar informed the regulator that coal-fired plants continue to receive imported fuel, although some logistical issues persist at plants such as Sahiwal and Jamshoro.
On electricity pricing, authorities indicated that fuel cost adjustments for April are expected to remain largely stable. A Rs. 1.64 per unit adjustment for February consumption will replace the earlier Rs. 1.63 per unit charge, resulting in minimal impact on consumers.
Separately, policymakers are preparing a new tariff package to promote higher daytime electricity consumption, particularly during peak solar generation hours. Power Planning and Monitoring Company CFO Naveed Qaiser said the move is aimed at improving demand management.
Industrial stakeholders have urged regulators to introduce a fixed, all-inclusive electricity tariff capped at nine US cents per kilowatt-hour for at least five years to support export competitiveness and reduce cost uncertainty.
Officials also noted that electricity supplied from the national grid to K-Electric helped prevent a potential Rs. 4.08 per unit increase in fuel cost adjustments for February. Additional quarterly tariff revisions are expected to provide further relief.
Meanwhile, the power sector’s circular debt is projected to remain below Rs. 1.69 trillion by the end of the current fiscal year, down from approximately Rs. 2.4 trillion a year earlier, reflecting improvements driven by subsidies and tariff reforms.
