Pakistan to Receive $5 Billion Investment for Oil and Gas Exploration
News Mania Desk/ Agnibeena Ghosh/7th July 2024
Pakistan is set to attract an investment of USD 5 billion over the next three years from both local and international firms aimed at exploring and developing petroleum and gas reserves. This initiative, announced during a meeting chaired by Prime Minister Shehbaz Sharif, aims to bolster the country’s energy independence and ease the burden of high fuel prices on its economy.
According to reports from the state-run Associated Press of Pakistan, the meeting highlighted plans to excavate approximately 240 sites across Pakistan with the USD 5 billion investment. Currently, Pakistan’s domestic production stands at 70,998 barrels of oil per day and 3,131 million standard cubic feet of gas per day.
Prime Minister Sharif emphasized the importance of prioritizing local exploration efforts to reduce Pakistan’s dependence on imported oil and gas, which costs billions annually. He underscored that boosting domestic production will help conserve valuable foreign exchange reserves and make fuel more affordable for ordinary citizens.
In addition to onshore exploration, Prime Minister Sharif urged companies to also explore offshore reserves to maximize Pakistan’s energy potential. He directed authorities to swiftly address sector challenges and develop policies conducive to enhancing petroleum and gas exploration in the country.
Currently, Pakistan faces significant fuel price challenges, with petrol priced at Rs. 265.61 per liter, high-speed diesel at Rs. 277.45 per liter, and light-speed diesel at Rs. 166.86 per liter. These prices have placed strain on the common man and the economy at large.
To facilitate effective policy formulation, Prime Minister Sharif formed a committee chaired by Deputy Prime Minister Ishaq Dar. This committee will collaborate with industry experts, secretaries, and relevant authorities to propose policies aimed at incentivizing the exploration and development of petroleum and gas reserves in Pakistan.
The delegation of oil and gas companies expressed gratitude to Prime Minister Sharif for including their sector in the consultation process and addressing their concerns seriously. They acknowledged the government’s commitment to resolving sectoral issues and looked forward to collaborative efforts in achieving Pakistan’s energy objectives.
In conclusion, Pakistan’s ambitious plan to attract USD 5 billion in investments for oil and gas exploration underscores its commitment to energy security and economic stability. With concerted efforts and strategic policies, the country aims to harness its natural resources effectively, benefiting both its economy and its citizens.
