Balochistan, Centre Agree on Framework to Commercialize Low-BTU Gas for Industrial Development

Staff Report

QUETTA: The Balochistan government and the federal government have agreed to develop a joint framework for the commercial utilization of low-BTU gas reserves, a move aimed at accelerating industrial growth, attracting investment, and strengthening the province’s economy.

The decision was taken during a high-level meeting jointly chaired by Chief Minister Mir Sarfraz Bugti and Federal Minister for Petroleum Ali Pervez Malik, where participants reviewed the potential of low-BTU gas resources and explored ways to transform them into viable economic assets.

The meeting evolved a consensus to make low-BTU gas commercially usable through a coordinated policy approach. To achieve this objective, a joint working group comprising representatives from the Government of Balochistan and the Ministry of Petroleum has been established. The group has been tasked with preparing a comprehensive regulatory and institutional framework, along with recommendations, by the end of July 2026.

They agreed that low-BTU gas reserves in Sui and other parts of the province could be utilized for cost-effective power generation, fertilizer manufacturing, and a range of industrial applications. The initiative is expected to stimulate economic activity, create employment opportunities, and support industrial expansion across Balochistan.

The Ministry of Petroleum assured the provincial government of full support, including facilitation in regulatory approvals, field development matters, and transport licensing through the Oil and Gas Regulatory Authority (OGRA).

Malik also proposed equity participation for Balochistan through a third-party company and reiterated the federal government's commitment to ensuring that local communities benefit from the province’s natural resources. He further directed the immediate activation of the Kulchas Drilling and Zinc Head projects to help accelerate industrial and economic progress.

The meeting also agreed that Corporate Social Responsibility (CSR) funds generated from resource-related projects should be utilized for welfare initiatives, social development schemes, and community-focused projects to ensure direct public benefit.

Speaking on the occasion, Bugti said the effective utilization of low-BTU gas could open new avenues for industrial development, job creation, and private-sector investment in Balochistan.

He emphasized that local communities should be the primary beneficiaries of the province’s natural wealth and noted that both the federal and provincial governments share a collective responsibility in this regard.

The chief minister said that sustainable monetization of natural resources would contribute to greater economic stability, increased revenue generation, and improved living standards for the people of Balochistan. He expressed confidence that close coordination between Islamabad and Quetta would help fast-track development initiatives and unlock the province’s economic potential.

Bugti reaffirmed his government's commitment to supporting projects that promote inclusive growth and contribute to the broader economic development of both Balochistan and Pakistan.

The meeting was attended virtually by Federal Minister Ali Pervez Malik and officials from the Ministry of Petroleum. The chief minister was joined by Parliamentary Secretary for Energy Mir Asghar Rind, Chief Secretary Shakeel Qadir Khan, Vice Chairman of the Balochistan Board of Investment and Trade Bilawal Khan Kakar, Secretary Energy Asfandyar Kakar, Principal Secretary Imran Zarkoon, and other senior government officials.