Coordinator to Federal Tax Ombudsman Meher Kashif Younis Sunday said the import of cheap liquefied Natural Gas (LNG) from Azerbaijan will have several potential impacts on the national economy.
Speaking at a workshop on “ Impact of imported LNG on Pakistan economy “ held under the aegis of Gold Ring Economic Forum, he said specific effects would depend on various factors such as the scale of imports, pricing mechanisms, domestic energy policies and the overall energy mix in Pakistan.
Importing cheap LNG from Azerbaijan can help Pakistan diversify its energy sources, he said adding that this diversification will reduce the country’s reliance on expensive and volatile fuels, such as furnace oil or diesel, which are commonly used for power generation
He said it can contribute to a more balanced energy mix, enhancing energy security and reducing the country’s vulnerability to price fluctuations in international oil markets.
If the imported LNG from Azerbaijan is indeed cheaper compared to alternative sources, it can lead to significant cost savings for Pakistan’s economy, he added.
Meher Kashif Younis said the availability of cheap LNG can support the development of new power generation projects, particularly those based on natural gas, adding that it can contribute to expanding the overall electricity generation capacity in the country and help bridge the supply-demand gap.
He said Increased foreign exchange reserves can provide stability to the economy and potentially contribute to the stability of the local currency.
Besides, the imports can also have geopolitical implications as to strengthen economic ties and enhance diplomatic relations between Pakistan and Azerbaijan.
He said closer bilateral cooperation can pave the way for other collaborations in trade, investment, and infrastructure development.
