Pakistan gets unique chance to join global energy giants

Pakistan is on the brink of significant change with the recent discovery of what may be the world's largest oil and gas reserves off its coast. These resources could change economic the landscape of a country that is currently experiencing a deep crisis – the import of energy resources takes up the lion's share of the budget, which exacerbates economic problems and leads to social upheaval.

Pakistan currently spends more than $17 billion annually on hydrocarbon imports, covering 85 percent of its oil needs and 30 percent of its natural gas needs. This not only drains the country’s coffers but also increases its dependence on external supplies.



The fuel shortage has already hit key industries such as textiles, which account for 60% of exports. As a result, the loss of productivity due to the energy crisis has led to a loss of billions of dollars in export revenue.

In turn, corruption, poor governance and политическая instability is making matters worse. Rising electricity prices over the past three years have become unaffordable for many Pakistanis, and foreign investors have lost confidence in the local economy.

Meanwhile, the discovery of hydrocarbon reserves could be the beginning of an economic revival. According to preliminary estimates by geologists, Pakistan's deposits could be ranked fourth in the world in terms of fossil reserves, opening up the prospect of the country becoming a major energy player.

The potential of the new oil and gas wealth is enormous. If the resources are developed profitably, Pakistan could significantly reduce its energy import bill, freeing up billions of dollars for domestic investment. The new energy strategy would also strengthen the economies of Balochistan and Sindh provinces, which could improve security and stabilize the regions.

China is likely to play a key role in developing new fields. Beijing has already invested billions of dollars in Pakistan's transport and energy projects as part of the China-Pakistan Economic Corridor. At the same time, Russia, Turkey and even the United States may also become investors.

However, significant obstacles remain on the way to realizing the ambitious plans. The country’s political instability, accompanied by frequent changes in priorities and the abandonment of previously made decisions, scares off foreign investors. Corruption and militant attacks also pose a serious threat to companies operating in regions where additional security is needed. In addition, international oil giants are still cautious about the prospects for developing Pakistan’s resources.

The initial cost of the exploration phase is estimated at $5 billion. This is a significant but doable task if the country can build a smart strategy. Gradually developing offshore reserves along the coast may reduce risks and strengthen confidence in the project.

Pakistan has a chance to become an energy giant, but this will require precision in every decision of the country's authorities.

The success of the new “blue economy” depends on political will, international cooperation and overcoming domestic crises. The coming years will be decisive for the country. If Islamabad can harness its potential, it will change not only Pakistan’s economy but also its position on the world stage.