The government is considering the implementation of a price equalisation levy on wellhead gas to alleviate the burden of subsidies on the federal budget. This initiative, part of the Integrated Energy Plan, aims to transform inefficient gas companies into profitable entities, leading to potential privatisation. With energy challenges mounting, Pakistan’s population is projected to reach 250 million by 2050. Currently, 82% of the country’s energy needs are met through fossil fuels, causing a substantial drain on foreign exchange reserves.
In response to these challenges, the government has hired consulting firms for petroleum sector reforms and regulatory reforms. The focus is on creating a wholesale gas sector marketplace, separating pipeline business from distribution companies to attract foreign investment and best practices.
As Pakistan continues to industrialize, the demand for energy is expected to double by 2045. The government is also exploring offshore exploration opportunities, engaging with international firms and finalizing proposals. With the energy sector in transition globally, Pakistan is looking to revamp its energy policies and attract exploration and production firms.
In conclusion, the government’s efforts towards energy sector reform and exploration aim to address the country’s energy needs sustainably and attract foreign investment to enhance energy security. Exciting developments in the petroleum sector signal a significant shift towards a more efficient and profitable energy landscape for Pakistan.
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