The closure of the Strait of Hormuz amid rising tensions between the US and Iran has started creating serious problems for Pakistan. The country, already struggling with economic challenges, is now facing a major gas shortage after Qatar’s LNG supply was disrupted.
Pakistan has been forced to buy emergency gas from the international spot market at a record price of $20.70 per mmBtu, almost double the price it was paying earlier through long-term supplies, according to reports.
Why did Qatar stop LNG supply to Pakistan?
Before tensions escalated in West Asia, Pakistan was receiving more than its required LNG supply from Qatar at fixed prices of around $10-11 per mmBtu. This helped Islamabad maintain enough gas availability without relying on expensive spot market purchases.
However, after the US-Iran war intensified and shipping movement through the Strait of Hormuz was affected, Qatar’s gas suppliers declared a “force majeure” situation. The companies informed Pakistan that they were unable to send low-cost LNG cargoes due to the disruption of the key shipping route.
The Strait of Hormuz is Qatar’s only major maritime export route for LNG, making the crisis a major challenge for countries dependent on Qatari gas supplies.
How is Pakistan’s economy being affected?
The halt in LNG supplies has created pressure on Pakistan’s energy sector. Gas shortages have affected electricity generation, leading to power cuts of 12 to 16 hours in several areas.
Industries are also facing difficulties due to limited energy availability, raising concerns about further damage to Pakistan’s already fragile economy.
To manage the crisis, Pakistan is now purchasing LNG from the international spot market at nearly double the previous cost. The higher import bill could put additional pressure on the country’s foreign exchange reserves.
What is Pakistan doing to tackle the gas shortage?
According to media reports, state-run company Pakistan LNG Limited has awarded a tender to PetroChina International for the delivery of a 140,000 cubic metre LNG cargo on July 21-22.
The price for the cargo has been fixed at $20.6999 per mmBtu. Pakistan offered a higher bid than BP Singapore, which had quoted $21.3737 per mmBtu.
First published on: Jul 17, 2026 12:12 PM IST
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About the Author
Shivam Verma
Shivam Verma is a Chief-Sub-Editor at News24. A postgraduate diploma holder in Integrated Journalism from the Asian College of Journalism, Chennai, Shivam focuses on international affairs, diplomacy, defence, and politics. Beyond the newsroom, he is passionate about football, both playing and watching, and enjoys travelling to explore new places and cuisines.
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