Pakistan Introduces Bills to Amend Gas Development Surcharge and GIDC Utilization
The Pakistani government has introduced two bills in the National Assembly to amend the mechanisms for collecting and adjusting the gas development surcharge and utilizing Gas Infrastructure Development Cess (GIDC) funds. The Natural Gas (Development Surcharge) (Amendment) Bill, 2026 seeks to link the development surcharge to the differential margin between the prescribed price and sale price of natural gas.
The bill proposes to introduce a definition of 'negative differential margin', which would arise when the prescribed price exceeds the sale price. If a negative differential margin emerges, the development surcharge would not become payable immediately. The liability would be recalculated after incorporation of the final tariff adjustment determined by the Oil and Gas Regulatory Authority (Ogra).
The proposed legislation also seeks to broaden the scope of utilisation of the GIDC for gas infrastructure development and other strategic gas infrastructure projects. Under the new law, the federal government can use GIDC funds beyond the specifically listed projects under the existing law.