Pakistan is currently hemorrhaging over half a million dollars daily—totaling nearly $15 million each month—in fees for liquefied natural gas (LNG) terminals that are effectively sitting idle. Despite a production halt by QatarEnergy that began in early March, the country remains legally bound to pay massive utilization and capacity charges. Federal Petroleum Minister Ali Pervaiz Malik has condemned these contractual arrangements as fundamentally “faulty,” arguing that they place an unfair financial burden on the state during periods of supply disruption.

The financial strain comes at a precarious time for Pakistan’s external accounts. Historically, the nation has spent $35 billion on LNG imports, with a staggering $3 billion of that sum going solely toward capacity payments. Following QatarEnergy’s declaration of force majeure on March 4, major domestic energy players—including Pakistan State Oil and Pakistan LNG Limited—followed suit by invoking similar legal protections. However, these declarations have not exempted the government from its dollar-denominated payment obligations.

Sources within the Petroleum Division noted that while various state-run entities have attempted to suspend their obligations under force majeure, the specific contracts governing the Engro Elengy and Pakistan GasPort terminals demand continuous payment. These clauses ensure that terminal operators receive their fees in U.S. dollars regardless of whether any gas is actually processed or delivered to the national grid.

This situation has highlighted a significant structural weakness in Pakistan’s long-term energy strategy. Official sentiment suggests that the current framework leaves the government vulnerable, forcing the treasury to settle high-cost bills for empty infrastructure even when international suppliers cannot fulfill their delivery commitments.