Federal Minister for Petroleum, Musadik Masood Malik has said the government is committed to enhance the indigenous production of petroleum products, including gas and crude oil.
While addressing an energy symposium here on Wednesday, he said that the government has put blocks for bidding and is actively trying to attract global players in exploration activities. Musadiq Malik said that Pakistan was open for business and committed to completely digitizing the regulatory process to increase transparency.
Highlighting the importance of the TAPI gas pipeline project, he said that it would provide cheaper gas. Reaffirming the government’s commitment to ensuring an uninterrupted and affordable energy supply, recognizing it as a top priority, he said that Pakistan currently spends over $18 billion annually on energy imports.
The minister reassured attendees that the government is expediting oil and gas exploration within the country and welcomes foreign companies to invest in this sector. Investment processes and information regarding oil and gas exploration have been digitized and simplified to facilitate this, he added. Musadik Malik said that to reduce electricity tariffs, the government was working on various proposals. By supplying local gas to efficient power plants, the cost of electricity could be reduced to Rs 12 per unit, compared to Rs 24 per unit when using LNG, he observed.
He acknowledged the high theft and losses in the gas sector, particularly in Balochistan, where gas losses have increased in Sui-Southern. To combat urban gas theft, modern systems, including comprehensive monitoring of the gas network using technology, were being implemented.
The minister advocated for increased utilization of Pakistan’s abundant renewable energy resources, especially as the country’s solar energy costs have significantly decreased. He said that multiple policies have been formulated to boost local production after a long period.
Regarding the TAPI framework, Musadik Malik said that project financing would be jointly provided by Pakistan and Turkmenistan.
