ISLAMABAD: A significant discovery of oil and gas reserves in Pakistan’s territorial water could potentially transform the country’s economic future.
The reserves, reportedly among the largest globally, might replace LNG and imported oil, potentially alleviating Pakistan’s substantial energy import bill.
However, experts caution that exploiting these resources will be a lengthy and costly process. Exploration along demands around $5 billion and could take up to five years, according to former Oil and Gas Regulatory Authority member Muhammad Arif. With Pakistan’s energy import costs soaring to an anticipated $31 billion in seven years, the reserves present a crucial economic opportunity.
Despite the promising news, international interest in Pakistani oil and gas exploration remains tepid. Security concerns in Pakistan highlight the security challenges, making state-owned or state-controlled Chinese firms the most likely investors. Discussions are ongoing with China, as other potential investors remain hesitant.
