The proposed policy shift aims to alleviate the mounting fiscal pressure caused by the ongoing closure of the Strait of Hormuz. Since Iranian strikes damaged the Ras Laffan export hub, Pakistan has been forced to pay record premiums for emergency shipments, pushing national power generation costs to unsustainable levels. By opening auctions to private players, the Ministry of Energy hopes to utilize idle capacity at the nation’s two LNG import terminals while decentralizing procurement risks.

This urgency follows Qatar’s decision to extend its force majeure through the end of November. With transit through the Hormuz chokepoint stalled by the U.S.-Iran conflict, Pakistan’s reliance on spot-market volatility has become a critical vulnerability. Allowing direct procurement represents a desperate attempt to secure consistent fuel supplies as the country grapples with an energy crisis that has left the state-owned Pakistan LNG Ltd. unable to meet domestic demand alone.