Pakistan’s growing population and economy are pushing up energy demand—but the country’s energy mix is heavily dependent on imported fossil fuels, driving up energy prices and posing a substantial challenge to the competitiveness of Pakistani products in the global market. The current energy mix stands at 58.8% thermal, 25.8% hydel, and 8.6% nuclear (Economic Survey of Pakistan 2022–23).
This heavy reliance on imported oil, coal, and LNG leaves the country vulnerable to price shocks, supply interruptions, and geopolitical risks. Energy prices in Pakistan surpass those of regional competitors like China, making export-oriented industries less competitive internationally. A policy ceiling on gas and electricity tariffs for the export sector is essential to stabilize business costs. Pakistan has the resources to achieve energy security, but requires political will, renewable diversification, and improved governance of the power sector to realize this potential.
Read the full article on Business Recorder (Published 22 July 2023).