PM forms committee to draft oil, gas exploration policy for energy-deficient Pakistan

A delegation of Petroleum and Gas Exploration & Production companies meets with Prime Minister Shehbaz Sharif in Islamabad on July 6, 2024. (PMO)

• Pakistan, embroiled in an economic crisis, lacks adequate resources to run its oil- and gas-powered plants and imports most of its energy needs
• Planned power cuts, also known as loadshedding, plague the South Asian country of 241 million every summer due to fuel shortages and high demand

ISLAMABAD: Prime Minister Shehbaz Sharif has formed a committee, led by Deputy PM Ishaq Dar, to formulate proposals for an oil and gas exploration policy in Pakistan after consultations with stakeholders, Sharif’s office said on Saturday.
The development came after the prime minister’s meeting with a delegation of petroleum and gas exploration and production companies in Islamabad, wherein he said exploring domestic oil and gas reserves was his government’s priority.
He invited petroleum and gas exploration firms to search for offshore reserves, saying that production from local reserves would save the country’s valuable foreign exchange and result in availability of cheaper oil and gas to the masses.
“After consultation with the representatives of the sector, the committee will formulate proposals for creating an attractive policy for exploration and development of petroleum and gas reserves in the country,” Sharif’s office said in a statement.
On the occasion, petroleum and gas exploration and production companies announced that they would invest $5 billion in Pakistan over the next three years. During this period, 240 sites will be drilled in search of petroleum and gas, according to the statement. The prime minister directed authorities to address the problems facing the sector on a priority basis.
Pakistan, which has been struggling with a balance of payments crisis, record inflation and steep currency devaluation, lacks adequate resources to run its oil- and gas-powered plants and imports most of its energy needs.
Consequently, planned power cuts, also known as loadshedding, plague the South Asian country of 241 million every summer due to fuel shortages and high demand, varying in length in different areas.
In April, Sharif had asked authorities to speed up efforts for foreign investment in solar energy projects as well as to accelerate the process of privatization of power generation companies and auction of inefficient power houses.