Prime Minister Shehbaz Sharif announced that local and international oil and gas exploration and production (E&P) companies plan to invest $5 billion in Pakistan’s petroleum sector. This investment, highlighted during a meeting with PM Shehbaz, is expected to enhance energy reliability and reduce reliance on costly oil imports. Emphasizing the exploration of local and offshore reserves, PM Shehbaz stated that utilizing domestic resources will save valuable foreign exchange and make fuel and gas more affordable.
The plan includes drilling around 240 exploratory wells over the next three years. Currently, Pakistan produces 70,998 barrels of oil and 3,131 MMSCFD of gas per day, a figure that needs substantial growth to achieve self-sufficiency. To support this, the PM formed a high-level committee led by Deputy PM Ishaq Dar to address sector challenges and develop attractive policies for exploration.
The State Bank of Pakistan (SBP) Governor, Jamil Ahmed, assured that profits of E&P companies are being remitted to their respective countries. This assurance, along with the government’s consultation process, was appreciated by the delegates. The meeting included key officials and representatives from both domestic and international companies.
According to the Pakistan Economic Survey 2023-24, the country’s petroleum import bill decreased due to lower consumption caused by reduced economic activity and higher prices. Imports of motor spirit, high-speed diesel, and crude oil declined. However, crude oil production increased slightly by 1.5%, while gas production fell by 2%.
