ISLAMABAD: Domestic exploration and production (E&P) companies, which were earlier asked to slow down output, are now being urged to increase production as much as possible to help stabilize fuel supply. Ibrar Khan, Secretary General of the Pakistan Petroleum Exploration & Production Companies Association (PPEPCA), said this in an exclusive conversation with Business Recorder . Amid ongoing tensions involving the United States, Israel, and Iran, LNG supply chains have come under pressure. Reports indicate disruptions in LNG supplies from Qatar, one of Pakistan’s key suppliers, and there is no clear timeline for full restoration. “All of a sudden, the focus has shifted,” said Ibrar Khan. Referring to the past policy approach, he said that at a time when the country was struggling with foreign exchange shortages and rising energy demand, local gas producers were not encouraged to increase production. Instead, companies were asked to reduce output. READ ALSO: Regional unrest: Panel identifies fuel supply roadblocks “The reason was simple: the system had to take imported RLNG under long-term contracts, whether it needed the volumes or not. To make room for these imports, indigenous gas output was curtailed,” he maintained. For years, he said, local gas was treated as the balancing factor. “Whenever imported RLNG cargoes arrived under take-or-pay commitments, domestic production was reduced,” he added. “Exploration and production is a high-risk and capital-intensive business. Companies invest billions in searching for and developing gas reserves. They do so with the expectation of stable policies and assured offtake of their production. When producers face uncertainty about whether their gas will be taken, investment slows down and new exploration is delayed,” he said. He noted that the present disruption in LNG supplies is a reminder of the risks associated with imports. Imported gas depends on international politics, shipping routes, and global prices, and also requires precious foreign exchange. Domestic gas, on the other hand, does not face these risks. It is produced within the country, supports local jobs, generates royalties for provinces, and reduces pressure on the balance of payments, he added. “The current situation clearly shows that when external supplies become uncertain, the country turns to its domestic producers for stability,” he said. “The lesson from the current crisis is straightforward. Pakistan cannot afford to ignore its domestic E&P industry in normal times and then depend on it only during emergencies. Such inconsistency harms investor confidence and weakens long-term resilience,” he maintained. Copyright Business Recorder, 2026