Pakistan Halts New Gas Connections Amid Acute Supply Crisis
Pakistan has suspended the issuance of new domestic and commercial gas connections as the country grapples with a deepening supply crisis, in a decision that reflects the growing structural strain on the national gas distribution network.
The moratorium affects both Sui Northern Gas Pipelines Limited and Sui Southern Gas Company service areas, where demand has consistently outpaced available supply. Officials have cited depleting domestic gas reserves and the high cost of importing liquefied natural gas as the primary drivers of the suspension.
The decision carries significant implications for real estate developers, new housing schemes, and small and medium enterprises that depend on gas connectivity as a baseline utility. Industry bodies are expected to raise concerns over the economic cascading effect of the ban.
The suspension also raises longer-term questions about Pakistan's energy transition strategy, as the government simultaneously seeks to promote gas-dependent industries while failing to secure reliable supply augmentation. Analysts have long warned that unresolved gas sector deficits would eventually require demand-side restrictions of this nature.
Similar Stories
Background and related coverage on this story.
IMF Approves $1.3bn for Pakistan, Warns of Middle East War Risks
The International Monetary Fund's Executive Board has approved $1.3 billion in financing for Pakistan under its ongoing reform programme, providing a critical lifeline to an economy navigating persistent fiscal pressures and an uncertain external environment. The disbursement marks a significant milestone in Pakistan's engagement with the Fund, reflecting continued compliance with agreed benchmarks on fiscal consolidation, monetary tightening, and structural reforms.
IMF Board Approves $1.32 Billion Tranche for Pakistan
The International Monetary Fund's executive board has approved a disbursement of $1.32 billion for Pakistan, providing a critical injection of external financing as the country continues to stabilise its balance of payments position. The tranche approval follows a successful programme review and signals the Fund's continued confidence in Pakistan's economic adjustment trajectory.
Pakistan Opens Six Land Routes for Trade with Iran Amid Hormuz Blockade
Pakistan has formally notified six overland routes for the transportation of goods to Iran as the blockade of the Strait of Hormuz and the disruption of Iranian ports continues to sever Tehran's access to maritime trade. The notification represents a substantive policy decision by Islamabad to activate alternative land corridors in response to one of the region's most serious logistical crises in years.
UN Warns Iran-Israel War Could Push 30 Million Back Into Poverty
The United Nations has issued a stark warning that the ongoing military conflict between Israel, the United States, and Iran risks pushing more than 30 million people back into poverty, with the greatest impacts expected in import-dependent developing nations and conflict-proximate economies across the Middle East and South Asia. The UN's assessment highlights the cascading economic consequences of the war, including the disruption of global oil supplies, soaring energy prices, supply chain fragmentation, and the collapse of trade routes through the Strait of Hormuz.
Second Qatari LNG tanker transits Hormuz to Pakistan amid Iran war
A second Qatari liquefied natural gas tanker is transiting the Strait of Hormuz en route to Pakistan, vessel tracking data shows, as the ongoing Iran war raises concerns over the security of one of the world's most critical energy chokepoints. The development confirms that LNG supply to Pakistan is continuing despite the heightened regional military situation, though market observers are watching the route closely.
PM Extends Austerity Drive to June 13 Amid Middle East War Impact
Prime Minister Shehbaz Sharif has extended the government's austerity drive through June 13, citing the economic spillover effects of the ongoing Middle East conflict. The decision reflects Islamabad's growing concern over external account pressure as the regional war disrupts trade routes, energy supply chains, and investor confidence across vulnerable economies.