The rejected bid arrived significantly above the prevailing international market rate of approximately $23.18. This latest financial hurdle exacerbates a precarious situation for Pakistan, where power generation costs jumped 38% in July compared to the previous year. The country has been forced to rely on volatile spot markets following the loss of long-term supply agreements with QatarEnergy, a disruption linked to the ongoing blockade of the Strait of Hormuz.

Recent supply failures have left the government struggling to keep the lights on. In Karachi, residents are enduring rolling blackouts that stretch up to 24 hours in some neighborhoods, with 12-hour outages reported elsewhere. Pakistan LNG Limited remains under pressure to secure energy at a sustainable price, as previous spot purchases in July—costing $20.70 and $21.88 per MMBtu—already pushed the country’s procurement budget to record levels since 2022. The new tender seeks 140,000 cubic meters of natural gas to fill the widening supply gap.