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by | Apr 4, 2026

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LNG Shortages Hit Power Generation; Officials Claim Electricity Rates Stable









Government officials have admitted that Liquefied Natural Gas (LNG) supplies for power generation are currently under “force majeure” — meaning they are unavailable due to circumstances beyond anyone’s control, mainly because of the ongoing US-Israel war on Iran and disruptions in the Strait of Hormuz.

This revelation came during a public hearing at NEPRA on Tuesday. Central Power Purchasing Agency (CPPA) CEO Rehan Akhtar told the regulator that LNG-based power plants, which have over 4,500 MW capacity, cannot run right now. However, he assured that coal imports from South Africa and Indonesia are unaffected and power plants using coal are running smoothly.


Qatar, a major global LNG supplier, had stopped operations and declared force majeure earlier in March, worsening the situation.

Officials tried to calm nerves by saying things are “under control” for now and no major electricity shock is expected. They are working on a new pricing package to encourage people and industries to use more cheap electricity during daytime hours, especially when solar power is also available.

CPPA Chief Rehan Akhtar further assured that electricity rates for April will remain unchanged for consumers. He also said supplying power from the national grid to K-Electric is actually helping keep tariffs lower for everyone.

On the positive side, the government reported that circular debt has come down significantly — from Rs2.4 trillion last January to Rs1.7 trillion this January, a reduction of about Rs780 billion.

Industrial consumers, however, pushed for a fixed, long-term industrial tariff (around 8-9 US cents per unit) for at least five years so they can plan better and stay competitive.

Overall, despite global fuel price volatility caused by the Middle East war, the government claims it has managed to pass on some relief to consumers, with industrial tariffs dropping notably from 18 cents to 12 cents per unit in the last two years.