Project Brief:
Pakistan has relied on natural gas for many decades, with gas accounting for nearly half of the country’s primary energy supplies. Historically, natural gas consumption has matched production levels within the country. However, this changed in 2015 when the government began importing LNG (liquefied natural gas) to meet rising demand. Although these imports temporarily alleviated gas shortages, they have also led to a significant sectoral debt exceeding Rs 5 trillion in recent years. The proposed study aims to identify and address critical policy bottlenecks that hinder investment in Pakistan’s upstream gas sector. Given the highly regulated environment, a sound policy framework is essential for incentivizing investment. The study will involve both qualitative and quantitative analyses of the gas sector, including an examination of stakeholder dynamics to highlight the conflicting interests of public and private sector stakeholders at both federal and provincial levels.
Public Policy Relevance:
Pakistan’s petroleum policy is crucial for establishing a pathway to energy security and enhancing the country’s overall energy landscape. As Pakistan seeks to boost domestic natural gas production, it faces several challenges, including regulatory frameworks, inter-provincial distribution issues, technological advancements, regional political dynamics, and climate change. Addressing these challenges is vital to ensuring a stable and reliable energy supply, particularly given the country’s dependence on natural gas for about half of its energy needs. By encouraging private sector investments, deregulation, and technological innovation, Pakistan has the potential to navigate the complexities of the global energy markets. This study aims to analyze these policies in detail, providing valuable insights for policymakers and stakeholders alike.
Team Details:
Principal Investigator
Faisal Jamil
Professor
NUST, Islamabad
Research Associate
Muhammad Saad Moeen
PhD Scholar
United Nations University, Tokyo
Research Associate
Bilal Aftab
PhD Scholar
NUST, Islamabad