Pakistani Petroleum Minister Ali Pervaiz Malik announced Wednesday that the government plans to shift the country’s oil supply from truck-based distribution to a pipeline network to reduce transportation costs and lower prices for consumers.

Speaking at a media briefing on the petroleum sector’s performance, Malik noted that the current infrastructure relies heavily on road transport. Currently, 100 percent of diesel and 60 percent of petrol are moved via tankers.

According to the Petroleum Ministry, the first phase of the transition will involve laying a pipeline from Faisalabad to Thal. Additionally, the government has also introduced a tracker system designed to curb illegal oil supply chains to improve security and oversight.

Malik highlighted that recent reforms have already stabilized gas prices and reduced the gas sector's circular debt to zero. However, he emphasized the necessity of timely payments for fuel consumption by both the public and the government. 

A high-powered committee has been established to resolve payment issues involving three state-owned companies.

The ministry is also taking steps to attract new investment by addressing bottlenecks in the supply chain. 

Malik confirmed that officials have held multiple meetings with the Finance Ministry to resolve outstanding payment disputes between oil marketing companies and the Federal Board of Revenue, with the progress on these initiatives expected within the next 10 days.

Additional reforms include a forthcoming policy for the liquefied petroleum gas (LPG) industry to address the discrepancy between the deregulated sector and its regulated pricing.

Malik concluded by calling for a long-term strategy for the mining sector, specifically questioning the historical investment timeline of the Reko Diq copper and gold project.