Pakistan, July 5 -- The federal government is considering lifting the 2009 ban on new gas connections to manage a growing liquefied natural gas (LNG) surplus. Currently, more than 3.5 million applications from households and industries are pending with Sui gas companies. Officials believe this move will improve gas utilization and ease pressure on unused infrastructure.

Due to high electricity tariffs and economic slowdown, many industries have shut down their captive gas-based power units. As a result, LNG terminals worth over $7 billion are underutilized. This has caused circular debt to shift from the power sector to petroleum, affecting suppliers and the wider economy.

To deal with the surplus, the government has reduced local gas p...