Pakistan is scaling back its dependence on imported liquefied natural gas (LNG) due to volatile global prices and the strain of a weakened currency on its economy. The government has decided to defer gas deliveries, opting instead for alternatives such as coal, hydropower, and nuclear energy to stabilize energy supply and reduce import costs. This shift marks a significant change in the country’s energy strategy.
As global demand for LNG fluctuates, Pakistan is turning towards cheaper energy sources. The country’s expanding hydro and nuclear capacity, much of which is financed by China, is gradually reshaping its energy mix. The reliance on coal, which has become more affordable, further supports this transition. Industry analysts suggest that this strategy aims to mitigate the financial burdens associated with energy imports.
Despite these efforts, Pakistan continues to grapple with persistent challenges. The country faces significant debt, rigid contracts, and inefficiencies within its electricity grid. These issues contribute to Pakistan having some of the most expensive electricity rates in South Asia. According to data from the government, the average cost of electricity remains a considerable burden for consumers and businesses alike.
The decision to pivot away from LNG aligns with global trends but highlights the unique economic circumstances Pakistan faces. The government’s ongoing efforts to diversify energy sources are intended to enhance energy security while reducing the vulnerability associated with international market fluctuations. However, the transition also requires careful management to ensure reliability and affordability.
As Pakistan moves forward, the focus will be on balancing immediate needs with long-term sustainability. The country’s energy policies will likely continue to evolve in response to both domestic demands and external pressures. By investing in a broader energy mix, Pakistan aims to create a more resilient and cost-effective energy sector, ensuring that it can meet the needs of its population without overreliance on imported fuels.
In the coming months, the effectiveness of this strategy will become clearer, particularly as the government navigates the complexities of energy procurement and infrastructure development. The success of these initiatives will be critical for Pakistan’s economic stability and growth, especially in a region where energy needs are rapidly increasing.
