KARACHI: Domestic oil and gas production has been on a steady decline over the past several years, a trend driven by policy inconsistencies and security challenges in hydrocarbon-rich regions.
Data reviewed by The News shows that oil and gas output has dropped consistently over the last five to six years. Industry experts and energy analysts say this downturn has increased Pakistan’s dependence on costly energy imports, putting additional pressure on foreign exchange reserves.
According to figures released by the Pakistan Petroleum Information Services, local oil production stood at 76,734 barrels of oil per day (bopd) in FY20. This declined to 75,497 bopd in FY21, 73,815 bopd in FY22, and further to 69,514 bopd in FY23. Although there was a marginal recovery to 70,524 bopd in FY24, output plunged to 62,395 bopd in FY25.
Gas production followed a similar pattern. Output was recorded at 3,598 million cubic feet per day (mmcfd) in FY20, falling to 3,505 mmcfd in FY2021, 3,390 mmcfd in FY22, and 3,259 mmcfd in FY23. It dropped further to 3,116 mmcfd in FY24 and 2,885 mmcfd in FY25.
The decline was observed across major producing fields including Qadirpur, Sui, Uch and Mari, all of which registered reduced output during this period. Industry insiders noted that several foreign firms have exited Pakistan’s upstream energy sector in recent years, citing inconsistent policy frameworks and weak enforcement. “Security concerns have hampered exploration in parts of Balochistan and Khyber Pakhtunkhwa (KP), but the more pressing issues are policy-related,” said one official. These include inadequate tax incentives, difficulties in repatriating profits, and technical barriers in block allocation, all of which have deterred foreign investment.
The ongoing circular debt crisis has also affected payments to companies operating in the sector, further dampening investor confidence. Energy analyst Muhammad Iqbal Jawaid said the fall in production is linked to natural depletion of reserves. “In some cases, oil production has ceased following the depletion of gas reservoirs within the same fields,” he explained.
