ISLAMABAD: Pakistan’s energy sector is facing a fragile transition, marked by declining domestic production, rising import dependence, and uneven supply growth, according to the Pakistan Energy Yearbook 2024–25 released by the Petroleum Division and Hydrocarbon Development Institute of Pakistan.
Indigenous energy production fell from 53 MTOE to 50 MTOE, while imports increased from 33 MTOE to 34 MTOE, highlighting growing reliance on external sources. Total primary energy supply rose only slightly by 1.58% to 82 MTOE, mainly due to imports of LPG, oil, coal, and electricity. LPG (+28.56%), imported electricity (+20.11%), oil (+14.51%), coal (+6.32%), and hydropower (+1.21%) increased, while natural gas, LNG (–4.1%), nuclear, and renewables declined, signalling tightening domestic availability.
Final energy consumption grew 8.32%, led by commercial (+23.38%), industrial (+16.78%), transport (+9.44%), and government (+14.79%) sectors, reflecting economic recovery, though agricultural use fell 30.97% and domestic use declined slightly, raising rural access concerns.
Crude oil production dropped 11.44% and gas output declined 7.52% due to ageing fields and limited drilling—only 28 exploratory and 30 development wells were completed. Despite 21 new gas and gas-condensate fields and a 26% increase in gas reserves to 23.31 TCF, production did not rise, highlighting extraction limitations. Proven oil reserves declined 1.39% to 240 million barrels.
To offset shortages, petroleum imports rose—refined products +16.61%, crude oil +19.44%—supporting refinery activity. Gas imports of 8.74 MTOE filled gaps, yet overall gas consumption fell 5.77%, with industrial consumption rising 62.5% while other sectors declined, indicating prioritisation of high-value use. Coal imports surged 27.86%, compensating for a 2.66% drop in domestic output, with over half used for power generation.
Power sector progress remained gradual: installed capacity increased slightly to 45,380 MW with 884 MW of new hydropower, but renewables stagnated. Electricity generation rose 3.04% to 140,420 GWh, mainly from thermal sources, with imports up 20.1%. Consumption increased in domestic (+4.6%), commercial (+5.7%), and industrial (+4.9%) sectors, while agriculture fell 31.4%, highlighting uneven distribution.
Overall, Pakistan’s energy system faces rising demand amid declining domestic supply, increasing reliance on imports, stagnating renewables, and a widening gap between growing gas reserves and extraction capacity, posing risks to long-term sustainability.
