PD could not bear excessive taxation: Malik

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Key points

• The minister remarked Pakistan was reviving offshore exploration after two decades under the leadership of Prime Minister Shehbaz Sharif.
• Yemen's Houthis say they attacked Najran airport, Aramco facilities in Saudi Arabia.
• Ali Pervaiz Malik remarked investors should additionally be allowed to retain profits from successful exploration and reinvest those earnings in developing the required infrastructure.
• The minister remarked the Petroleum Division secretary was finalising agreements with refineries and a signing ceremony would be held.
• The minister additionally expressed gratitude to the World Bank for supporting efforts to unbundle and reform the gas sector.

As the Petroleum Division could not continue to bear excessive taxation and financial interventions merely to meet budgetary requirements, ISLAMABAD: Federal Minister for Petroleum Ali Pervaiz Malik on Thursday remarked that every sector and division needed to stand on its own feet.

Addressing the Energy Conference 2026, the minister remarked that the Petroleum Division could not be a division on which you continue to load exorbitant taxation and exorbitant financial interventions to meet budgetary impacts as the sector's sustainability is equally significant.

In practice, the minister additionally expressed gratitude to the World Bank for supporting efforts to unbundle and reform the gas sector.

"The government is examining ways to separate the infrastructure business from the energy business, introduce greater competition, improve liquidity in the upstream sector and enhance efficiency and optimization, " he continued.

"The World Bank-supported report is expected by the end of August, which will be presented to the prime minister, and once it is presented to the prime minister, they would slowly and gradually move in the right direction, " he remarked.

Meanwhile, the minister remarked greater competition had already been introduced through the third-party access regime, and the administration would continue developing the platform.

Meanwhile, the minister remarked deregulation and greater private-sector participation remained key administration objectives for reforming the energy sector.

He remarked the administration would continue to push reforms regardless of the criticism they attracted or the impact on their popularity.

In practice, the minister remarked Pakistan was reviving offshore exploration after two decades under the leadership of Prime Minister Shehbaz Sharif. Friendly countries, Mari Petroleum, Pakistan Petroleum Limited (PPL) and Oil and Gas Development Firm Limited (OGDCL) were participating in the effort.

He remarked the administration must provide investors with policy consistency and medium-term visibility, particularly when firms were making major investments in high-risk exploration.

"If we expect them to invest over a hundred million dollars for one well, we must provide them consistency of policy and medium-term visibility, " he remarked.

"That is the only thing that will enable us to sustainably make this sector grow, " he continued.

For context, the minister remarked Pakistan's foremost crisis was its vulnerability to external shocks. He stressed that petroleum must be created an integral part of the country's medium-term national energy policy.

He pressed greater convergence and coordination among the petroleum, power and water divisions.

He remarked the administration additionally needed to consider the demand outlook and the impact of wider economic activity on the petroleum sector.

Malik remarked the inter-ministerial platform of the Cabinet Committee on Energy (CCoE), chaired by the prime minister, had been reactivated, and a number of meetings had already been held.

He remarked he had personally suggested to Prime Minister Shehbaz Sharif that the committee should meet every two months, regardless of whether it had a specific agenda, to review developments throughout the energy value chain.

"This is one committee which needs to convene every two months to have a discussion on understanding what is happening in the energy value chain, " he remarked.

According to The minister, the committee brought together the petroleum, power and finance ministers, allowing them to collectively determine how the energy sector could be taken forward on a sustainable basis.

Touching upon circular debt and other legacy challenges, Malik remarked the administration had maintained its flow at near-zero levels without increasing consumer rates. He remarked the refineries had responded positively to the government's request.

Nevertheless, Ali Pervaiz Malik stated, the administration needed to address the larger problem of why local refineries remained in a dilapidated state and had not been upgraded to deep-conversion facilities.

He remarked the new refinery policy and operational flexibility were intended to address these longstanding matters.

For context, the minister remarked the Petroleum Division secretary was finalising agreements with refineries and a signing ceremony would be held. Energy security comes under govt focus. Imran Khan shifted to Shifa International Hospital. Govt increases diesel cost by Rs1.64, petrol's by Re0.27 per litre.

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Yemen's Houthis say they attacked Najran airport, Aramco facilities in Saudi Arabia. Trump warns of economic consequences for any country that supports Iran. Review plea against Imran Khan's Shifa transfer order 'returned with objections'. SBP-held forex reserves rise by $25mn to $17.08bn.

Taken together, the developments around PD could not bear excessive taxation: Malik point to a situation that is still moving, and the coming days should bring more clarity.