ISLAMABAD: Energy sector experts and industry leaders on Thursday called on policymakers to remove structural bottlenecks in the power and energy sectors, including over-regulation, slow decision-making and limited fiscal incentives, to stimulate local and foreign investment.
The recommendations were made during the Pakistan Energy Conference (PEC), organised by the Petroleum Institute of Pakistan (PIP) under the theme “Transforming Pakistan’s Energy Sector.”
The conference opened with a welcome address by PIP Chairman Syed Muhammad Taha, who is also Managing Director of Pakistan State Oil (PSO). A recorded video message from Federal Minister for Energy (Petroleum Division) Ali Pervaiz Malik followed, in which he reiterated the government’s commitment to energy sector reforms, sustainability, investment facilitation and long-term energy security.
Although the federal minister did not attend in person, the conference was attended by Managing Director Oil and Gas Development Company Limited (OGDCL) Ahmed Hayat Lak, Chairman Oil and Gas Regulatory Authority (OGRA) Masroor Khan, along with chief executives and senior officials from across the energy value chain. Chief Executive Officer of PIP, Shehryar Omar, also addressed the gathering.
While acknowledging the government’s reform efforts, experts and private sector executives highlighted persistent challenges deterring investment, particularly excessive regulation, lack of reliable and easily accessible data for investors, and delays in decision-making and implementation.
Participants stressed the need for faster approvals, policy consistency and targeted fiscal incentives to attract both domestic and international investors, especially in the oil and gas sector. They also urged easing regulatory constraints related to tight gas and offshore exploration and development.
Experts noted that national energy consumption has declined by nearly 50 per cent over the past three years, observing that energy demand is generally more sensitive to income levels than prices, with the residential sector being a notable exception. Currently, around 80 per cent of Pakistan’s energy supply is derived from oil, coal and gas, though this share is expected to decline over time.
According to sector specialists, demand for hydropower, liquefied petroleum gas (LPG) and renewable energy is likely to increase, while the role of oil and gas in the energy mix may gradually diminish. Energy demand from the residential sector is projected to grow faster than other segments.
The experts warned that Pakistan’s energy import bill is expected to rise both in absolute terms and as a share of GDP unless meaningful reforms are implemented. They agreed that a reform-driven pathway offers the most viable option for sustainable growth.
To enhance per capita primary energy supply and demand, participants emphasised improving energy efficiency and recommended replacing imported coal with domestic coal, which could potentially reduce the import bill by up to $8 billion by 2050.
They also called for more efficient use of gas to curb imports and suggested that imported natural gas used for power generation could gradually be replaced with renewable energy over the next decade. Similarly, imported coal used by the power and industrial sectors could be substituted with domestic coal during the same period.
Participants noted that electricity imports would continue under existing plans, with no further additions envisaged, while non-power uses of oil and gas may be difficult to substitute. However, they strongly recommended expanding renewable energy-based power generation in the coming years.
The conference also underscored the importance of deploying modern technologies to enhance energy efficiency and establishing an updated energy database portal to provide accurate and real-time information to stakeholders.
“Pakistan needs a comprehensive 20- to 25-year vision for exploration, refining and petrochemicals. Local production of biofuels and biodiesel should be promoted to reduce reliance on imported fuels,” experts said.
OGDCL served as the Lead Partner of the Pakistan Energy Conference, while Pak Arab Refinery Limited (PARCO), Pakistan Petroleum Limited (PPL), Pakistan State Oil (PSO) and United Energy Pakistan Limited (UEPL) participated as Gold Partners. Universal Gas Distribution Company (UGDC) joined as the Silver Partner, reflecting strong industry support for the event.
A key highlight of the conference was the presentation of the Pakistan Energy Outlook 2025, offering strategic insights into future energy demand, supply dynamics and the need for integrated planning in view of economic and environmental challenges.
Story by Mushtaq Ghumman
