The announcement by local and international companies of a $5b investment in oil & gas exploration and production sector of Pakistan over next three years is a welcome development. At present, Pakistan is grappling with the challenge of meeting its energy needs. There was a time when country was self-sufficient in natural gas, producing enough to meet domestic requirements.
However, due to a lack of sustained exploration activities and an inadequate policy framework, the country has now become increasingly reliant on imported oil and gas. This dependency has placed a considerable burden on our foreign exchange reserves, exacerbating economic vulnerabilities. The commitment to excavate around 240 potential reserve sites represents a crucial step towards reversing this trend. With current domestic oil production at 70,998 barrels per day and gas production at 3,131 million standard cubic feet per day (MMSCFD), there is substantial room for growth. Studies have indicated that Pakistan has extensive untapped oil and gas reserves, particularly promising are the seepages of oil and gas found in the provinces of Khyber Pakhtunkhwa (KP), Balochistan and Punjab. These seepages represent low-hanging fruit that, if adequately harnessed, could significantly boost domestic production. The experience of regions like China’s Xinjiang province and Virginia in the United States, where substantial quantities of oil are produced through seepage, underscores the potential of this approach.
The Prime Minister’s initiative to form a committee, chaired by Deputy Prime Minister Ishaq Dar, to develop an attractive policy for exploration and development is a step in the right direction. This policy must be comprehensive and forward-looking, encouraging exploration in all areas —onshore, offshore and particularly in the utilisation of hydrocarbon seepages. Simplifying bureaucratic procedures and ensuring a clear, consistent regulatory framework will attract more local and international investors. Partnering with countries and companies that have a proven track record in the oil and gas sector can bring in expertise and best practices. Accelerating exploration and production activities is not just about reducing dependency on imports, it is about laying the foundation for a self-sufficient and robust energy sector. Achieving self-sufficiency in energy will provide a stable platform for sustainable economic development, reducing strain on our foreign exchange reserves and creating job opportunities. The path forward requires commitment and a strategic approach. With right policies and sustained investment, we can unlock the vast energy potential.
