Addressing Pakistan’s gas shortages

Pakistan has been grappling with persistent challenges in meeting the demand for natural gas, resulting from increasing energy needs, infrastructure limitations, and supply-demand gaps. Last year, domestic natural gas production in Pakistan experienced a decrease of approximately five per cent. Around 25pc of the country’s natural gas consumption is being met through imported LNG. The government’s provision of subsidised gas to the fertiliser sector has strained resources and raised concerns about energy efficiency and environmental impact. Despite these challenges, the government has continued its provision of subsidised gas to the fertiliser sector. In the previous year alone, the government paid a subsidy of approximately Rs150 billion specifically to the fertiliser sector. Additionally, industries such as textiles, ceramics, glass, and steel have suffered production setbacks due to the non-availability of gas. The fertiliser industry, which consumes approximately 20pc of the country’s natural gas, faces significant energy inefficiency due to outdated technology and equipment. This inefficiency leads to higher energy costs, environmental concerns, and challenges in meeting the growing demand for natural gas.