Pakistan Proposes Overhaul of Natural Gas Laws, Expanding Infrastructure Development Cess Use
The federal government in Pakistan has introduced two bills in the National Assembly to amend existing laws related to natural gas and infrastructure development. The Natural Gas (Development Surcharge) (Amendment) Bill, 2026, seeks to modify the mechanism for calculating and adjusting the development surcharge on natural gas.
Under the proposed legislation, the development surcharge would be linked to the differential margin between the prescribed price and the sale price of natural gas. The Oil and Gas Regulatory Authority (Ogra) would determine and notify the prescribed price and related revenue requirements.
The bill also introduces a definition of 'negative differential margin', which arises when the prescribed price exceeds the sale price. If a negative differential margin emerges, the development surcharge would not become payable immediately, but the liability would be recalculated after incorporation of the final tariff adjustment determined by Ogra.