Hilly & remote areas: KP govt seeks PD’s permission to establish LPG company
ISLAMABAD: The Khyber Pakhtunkhwa government asked the Petroleum Division to allow the provincial government to establish an LPG company to cater to the energy needs of people living in hilly and remote areas, utilizing the 10 percent LPG quota provided under the LPG Policy for such areas.
The matter came under discussion during a meeting between Federal Minister for Petroleum Ali Pervaiz Malik and Khyber Pakhtunkhwa Minister for Energy and Power Nazir Ahmed Abbasi, here on Thursday. Both sides discussed strategic energy issues, oil and gas supply, security of exploration and production activities, and the energy challenges faced by the province. Secretary for Energy and Power, KP Government, was also present at the meeting.
Both sides agreed that enhanced exploration and production activities in KP would not only strengthen Pakistan’s domestic energy security but also increase royalty revenues for the province. Both sides also agreed that enhanced coordination among the Federal Government, security forces and the provincial government would be important for creating a secure environment for E&P activities.
KP Minister Nazir Ahmed Abbasi acknowledged that the security issue needs to be addressed to facilitate E&P operations and assured full support and cooperation from the provincial government in this regard. He also highlighted that the success ratio of wells in the province is higher than the global average, underscoring the significant potential for further exploration and investment.
KP Minister Nazir Ahmed Abbasi agreed with the approach, stating that the attitude of both governments should be to sit together, identify problems, and find practical solutions to improve conditions for the people of KP.
Earlier, Federal Minister Ali Pervaiz Malik briefed the KP Minister on the prevailing oil supply situation and volatility in international petroleum markets. He highlighted the pressures being faced by the domestic energy sector due to developments in international markets and reiterated the Federal Government’s commitment to ensuring stable and uninterrupted energy supplies.
The Federal Minister highlighted that the Federal Government, in coordination with the security forces, is working on a comprehensive plan to ensure the security of Exploration and Production (E&P) activities in KP. He emphasized that a secure operating environment is essential for sustaining and expanding exploration activities in the province.
Discussing the gas challenges faced by KP, the Federal Minister explained that the ongoing war and resulting disruptions in international energy markets were placing pressure on gas supplies. He stated that once the situation improves, the supply and distribution arrangements could be reassessed in light of the prevailing circumstances.
Officials from the Petroleum Division briefed the meeting on the LPG being allocated to hilly and forest areas and assured that specific details regarding the allocation and supply would also be shared with the KP Government.
Federal Minister Ali Pervaiz Malik directed the relevant officials of the Petroleum Division to closely coordinate with the KP Energy Department and facilitate the provincial government in addressing its energy-related issues in every possible manner.
Copyright Business Recorder, 2026