Pakistan, struggling under heavy debt and financial crisis, is facing severe inflation and economic difficulties. The country has had to increase taxes and reduce government spending. Recently, Pakistan also raised petrol and diesel prices. However, things might soon improve for Pakistan’s economy.
Discovery of Oil and Gas Reserves
According to Pakistani media, with the help of a friendly nation, Pakistan began a survey to locate oil and gas reserves. This survey has found large reserves of oil and gas deep under the sea within Pakistan’s maritime borders. These reserves could potentially turn around Pakistan’s economic situation.
Need for Investment
A former member of Pakistan’s oil and gas regulator stated that while there is hope, it’s not guaranteed that the reserves will be as large as expected. If the reserves include gas, it could reduce the need for LNG imports, and if oil is found, it could reduce the need for imported crude oil. Exploring these reserves will require an investment of $5 billion and could take up to five years.
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Rising Energy Import Costs
In 2023, Pakistan spent $17.5 billion on importing oil and gas, and this cost could double to $31 billion over the next seven years. Recently, Pakistan’s Energy Minister appealed to foreign investors to invest $25 to $30 billion in the country’s oil and gas sector to help reduce the cost of energy imports.
