National Assembly Introduces Gas Infrastructure Development Cess (Amendment) Act 2026

Pakistan’s National Assembly has introduced the Gas Infrastructure Development Cess (Amendment) Act, 2026 to broaden the scope of utilization of the Gas Infrastructure Development Cess (GIDC) and provide greater flexibility for gas infrastructure development and other strategic gas infrastructure projects.

The amendment seeks to update the Gas Infrastructure Development Cess Act, 2015 in view of Pakistan’s evolving energy landscape and infrastructure development requirements.

What Changed Under the New Law?

Gas Infrastructure Development Cess Act, 2015 Amended

The amendment modifies Section 4 of the Gas Infrastructure Development Cess Act, 2015.

Under the amended provision, notwithstanding anything contained in any other law for the time being in force, the cess may be utilized by the Federal Government for or in connection with gas infrastructure development or any other strategic gas infrastructure projects.

Scope of Cess Utilization Expanded

The amendment broadens the scope of how the Gas Infrastructure Development Cess can be utilized.

The revised provision allows the Federal Government to use the cess for:

• Gas infrastructure development
• Other strategic gas infrastructure projects
• Projects connected with the country’s evolving energy requirements

The change is intended to provide greater flexibility in the utilization of the cess.

What Was the Previous Provision?

The Statement of Objects and Reasons states that Section 4(1) of the Gas Infrastructure Development Cess Act, 2015 provided for utilization of the cess for specified gas infrastructure projects.

These included:

• Turkmenistan-Afghanistan-Pakistan-India (TAPI) Pipeline Project
• Iran-Pakistan Pipeline Project
• LNG or other ancillary projects

The amendment seeks to broaden this scope beyond the specified projects.

Why Was the Law Introduced?

According to the Statement of Objects and Reasons, Pakistan’s energy sector requires infrastructure development consistent with the country’s evolving energy landscape.

The government considers it necessary to broaden the scope of utilization of the cess to provide greater flexibility for gas infrastructure development and other strategic gas infrastructure projects.

What Does the Amendment Aim to Achieve?

The legislation seeks to:

• Amend the Gas Infrastructure Development Cess Act, 2015
• Broaden the scope of GIDC utilization
• Provide greater flexibility for gas infrastructure development
• Allow utilization for other strategic gas infrastructure projects
• Support infrastructure development requirements of the energy sector
• Align the law with Pakistan’s evolving energy landscape

The government considers the amendment necessary to address the changing infrastructure requirements of Pakistan’s energy sector.

Key Provisions of the Amendment

• The Gas Infrastructure Development Cess (Amendment) Act, 2026 is introduced
• Section 4 of the Gas Infrastructure Development Cess Act, 2015 is amended
• The scope of GIDC utilization is broadened
• The Federal Government may utilize the cess for gas infrastructure development
• The cess may also be used for other strategic gas infrastructure projects
• The amendment provides greater flexibility in gas infrastructure development
• The Act comes into force immediately

Pakistan’s National Assembly has introduced the Gas Infrastructure Development Cess (Amendment) Act, 2026 to expand the utilization scope of the GIDC, provide greater flexibility for gas infrastructure development, and support other strategic gas infrastructure projects in line with the country’s evolving energy requirements.