The petroluem policy of Pakistan allows the companies engaged in petroluem production to sell 90 percent of the gas produced by them to the entities designated by the Federal Government. These companies can directly sell the remaining 10 percent of gas to private parties through bilateral contracts.

The Federal Government has lately been considering  to increase the share of unallocated gas to 35 percent for direct sale to private parties. Reportedly, a high-powered committee of the Federal Government led by the Deputy Prime Minister has recently finalised the proposal to increase the share of unallocated gas volumes to third-party buyers with a cap that would be progressively revised. The proposal will be submitted to a constitutional committee on economic policies for approval.

The gas sector has long been waiting for this policy change which is expected to allow more depth in the market adding new players, and improve cash flows for the gas producing companies and reduce financial burden on the Federal Government.