Hydrocarbon reserves discovered in Khairpur
Oil & Gas Development Company Limited (OGDCL) announced a significant oil and gas discovery at the Faakir-1 well within the Bitrisim Exploration License in Khairpur, Sindh. As per a statement, OGDCL operates the well with a 95% working interest.
The exploratory well was spudded on December 31, 2024, and drilled to a depth of 4,185 metres in the Sembar Formation. Post-drilling analysis included two Drill Stem Tests (DSTs) in the Lower Goru Formation, targeting the Massive and Basal Sand intervals. These tests showed a cumulative production of 6.4 million standard cubic feet of gas per day (mmscfd) and 55 barrels of condensate per day.
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4 days ago
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RLNG: Supply glut or policy failure?—II
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The RLNG surplus has also triggered curtailment of ~270 MMCFD of indigenous gas production, resulting in losses of ~ USD 378 million to upstream E&P companies, according to OGDCL. This is particularly concerning given the country's rapidly depleting indigenous gas reserves and the urgent need to incentivize new E&P investments. Addressing the RLNG surplus and reviving local industrial demand for gas/RLNG are essential to restart the oil and gas exploration and development cycle. Meanwhile, despite the transition of CPPs to the grid—as reflected by the ~90 percent decline in captive gas consumption—the situation in the power sector has shown no improvement. Following a 21 percent YoY increase in generation in April, generation for May and June was only 1-1.5 percent higher in FY25 compared to FY24, and 3 percent below the reference generation level in June 2025. Overall, generation in the fourth quarter of FY25 showed no improvement. Effectively, the gains from the CPP transition to the grid have been wiped out by consumers shifting to on- and off-the-grid solar solutions, meaning that the industry's competitiveness has been scapegoated to extend a short lifeline to an otherwise unsustainable grid stuck in a utility death spiral. In response to the severe financial crisis created by the deliberate destruction of captive power demand and the resulting RLNG surplus, the government is now resorting to issuing massive RLNG price adjustment bills, spanning a decade from 2015 to 2022, and demanding payment within an unreasonably short timeframe of 2 working days. Bills amounting to hundreds of millions of rupees were delivered without any warning, transparent calculations, or proper reconciliation, especially given that RLNG rates were capped at significantly lower levels during much of this period. Reopening settled accounts from years past is tantamount to unleashing a Pandora's box, creating an untenable situation for manufacturers who have already fulfilled their contractual obligations and sold their output, largely for export markets. The industry finds itself bewildered as to how it could possibly mobilize such large sums with no warning. It is utterly baffling, and frankly reckless, that the government expects fresh investment to flow into Pakistan when it is busy slapping existing investors with unexpected, decade-old RLNG price adjustment bills, turning their financially stable businesses into a nightmare from the past. The ongoing crisis in Pakistan's gas sector is fundamentally rooted in mismanagement and deliberate suppression of RLNG demand from industrial captive users. Contrary to narratives of a supply glut, there is ample demand within the industrial sector for RLNG at full market prices — without any government subsidy. Yet, distortionary policies continue to obstruct the natural supply-demand equilibrium. To move forward, it is imperative to first confront the truth: the core issue lies in excessive government regulation. The same regulatory chokehold historically pushed industries into captive power generation, led to bloated surplus generation capacity on the grid, and now forces industries to consume this surplus grid power, simultaneously fostering an RLNG surplus in the gas market. Undoubtedly, the high share of stranded capacity on the grid must be addressed, but it is untenable and entirely short-sighted to impose those costs on the industrial sector, the backbone of any economy. This sector provides jobs, generates tax revenue, earns foreign exchange, and drives a high economic multiplier effect. As the government continues down the path of destroying industry through punitive energy policies, it jeopardises the very economic foundation on which the country's economic future depends. The real solution requires dismantling these regulatory constraints and empowering competitive, market-based energy systems. The government must relinquish its heavy-handed control and allow industries the freedom to select their energy sources—free from both subsidies and policy distortions. Pakistan's latent energy demand is vast but remains constrained by restrictive policies. By restoring market dynamics and abandoning one-size-fits-all mandates, Pakistan's energy sector can regain stability and efficiency, paving the way for broader economic recovery and sustainable growth. (Concluded) ==================================================================================== CPPA-G Power Generation (as per FPA petitions) ==================================================================================== FY25 Actual FY24 Actual FY25 Change FY25 Reference FY25 Change ('000 GWh) ('000 GWh) over FY24 ('000 GWh) over Reference ------------------------------------------------------------------------------------ April 10.4 8.6 20.93 percent 10.2 1.96 percent May 12.8 12.6 1.23 percent 12.6 1.23 percent June 13.7 13.5 1.48 percent 14.1 -2.84 percent Q4 36.9 34.7 6.21 percent 36.9 -0.12 percent ==================================================================================== Copyright Business Recorder, 2025
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05-08-2025
- Business Recorder
Minister links 5G spectrum auction with resolution of two key issues
ISLAMABAD: Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja has linked the much-anticipated 5G spectrum auction with the resolution of two key issues including the acquisition of Telenor by the PTCL and ongoing spectrum litigation cases. 'The government plans to auction 5G spectrum by the end of this year, subject to the resolution of pending matters,' said the minister while addressing at an event where Ministry of Information Technology and Telecommunication (MoITT) and the Ministry of Federal Education and Professional Training, in partnership with, TikTok, announced the official launch of Science, Technology, Engineering, and Mathematics (STEM) feed in Pakistan, reinforcing its commitment to make high-quality educational content more accessible and engaging for all. Pakistan is currently operating on 274 MHz of spectrum, while the upcoming auction is expected to offer double that capacity. Fatima also highlighted ongoing efforts to improve digital infrastructure, including fibre optic expansion, satellite internet, and smartphone affordability. A new policy is being drafted to allow smartphones on easy installments. 'We are working on a comprehensive digital identity system under the Digital Pakistan Act,' she said, adding that internet access in the country has increased by 25 percent. She also stated that inflation and policy rates have declined due to better integration of digital systems. The minister revealed that Pakistan's IT exports rose by $1 billion over the past two years, with 96 percent of freelancers contributing over $700 million. Additionally, 1.2 million laptops were distributed on merit, with another 100,000 to be provided soon. She announced that one million children will be trained under the country's Artificial Intelligence (AI) policy, while 100,000 individuals have already received training via DigiSkills in the last year. She said that seven submarine cables are already connected to Pakistan; with three more expected this year. The world's largest submarine cable will also link with Pakistan by the end of 2025. 'In today's era, technology is becoming a part of our lives. We want to see how we can learn something new using technology,' said the minister, adding that technology should be used in an ethical and positive way. She said that technology played a crucial role in the India-Pakistan war. The new STEM feed on TikTok is a dedicated in-app experience where users can explore a curated stream of high-quality content focused on science, technology, engineering, and mathematics. It is designed to spark curiosity, promote critical thinking, and expand digital learning opportunities, especially for students, educators, and young professionals across Pakistan. TikTok is also partnering with leading academic institutions across the country to launch a training programme for teachers, educators and instructors. These trainings are focused on empowering them with the tools, techniques, and best practices, needed to create compelling, informative, and engaging STEM content tailored for short-form video. In addition, TikTok is actively nurturing Pakistan's local STEM creator community, providing training and guidance to increase the volume and quality of STEM content across the platform in English, Urdu and regional languages as well. This effort is aimed at building a self-sustaining educational ecosystem where both formal educators and independent creators contribute to a shared mission: making STEM education fun, inclusive, and discoverable. TikTok has also launched a dedicated hashtag #StemTok, as well as a landing page, where it will feature content created by partners, creators and publishers, providing easy access to local language STEM content in Pakistan. The minister said that this initiative is aligned with our broader vision to use digital platforms to enhance education and skill development in Pakistan. TikTok's STEM feed is an excellent example of how technology can democratize access to knowledge and empower our youth, including aspiring female students, to explore new career pathways in science and technology. 'We are proud to support this collaboration with TikTok and look forward to seeing its long-term impact.' Wajiha Qamar, Minister of State for Federal Education and Professional Training, stated, 'We welcome the launch of TikTok's dedicated STEM Feed in Pakistan as a step towards making science and technology more accessible and relatable to our youth. Digital platforms, when used responsibly, can become powerful tools for education, creativity, and empowerment.' Fahad Muhammad Khan Niazi, Head of Public Policy and Government Relations, Pakistan at TikTok said: 'The launch of the TikTok STEM feed in Pakistan marks an exciting milestone in our mission to inspire and educate through creativity.' Copyright Business Recorder, 2025
