Islamabad, Pakistan – Web Desk: Pakistan’s evolving energy mix is helping cushion the impact of rising global oil prices, as experts say recent structural changes in the power sector are reducing reliance on imported fuels.
Amid escalating tensions in the Middle East and a sharp surge in global crude prices, concerns have emerged over potential economic pressure on Pakistan. However, analysts argue that diversification in energy sources has improved the country’s resilience compared to previous crises.
Historically, oil price shocks in 2008 and 2022 triggered inflation, weakened foreign exchange reserves, and contributed to economic instability. In contrast, recent developments in renewable and domestic energy production are expected to mitigate similar risks.
Solar energy usage has expanded significantly in recent years and now accounts for approximately 20–25% of total electricity consumption, according to industry estimates. This growth has reduced dependence on costly oil and gas imports, saving billions of dollars in foreign exchange.
In parallel, Pakistan has accelerated development in domestic energy sources such as coal from the Thar Desert and hydropower projects, further strengthening energy security.
The share of furnace oil in electricity generation has dropped dramatically—from around 35% a decade ago to below 1%—reflecting a major shift toward cleaner and more cost-effective alternatives. Meanwhile, the use of liquefied natural gas (LNG) has increased to support power generation.
Experts note that while global price volatility still poses risks, Pakistan’s diversified energy portfolio provides a buffer against external shocks and supports long-term economic stability.
The transition toward renewable energy and local resources is seen as a critical step in reducing vulnerability to global market fluctuations and ensuring sustainable growth in the energy sector.
