Islamabad (Commerce Desk) – Rising tensions in the Middle East and a sharp increase in global oil prices have raised concerns about pressure on Pakistan’s economy. However, experts believe that recent changes in the energy sector could help mitigate some of these effects.
In the past, steep oil price hikes in 2008 and 2022 had severely affected Pakistan’s economy, causing inflation, depletion of foreign exchange reserves, and economic instability. Today, due to diversification in energy sources, the situation appears relatively better.
The use of solar energy in Pakistan has increased significantly, now accounting for approximately 20 to 25 percent of total electricity consumption. Experts say this trend has reduced oil and gas imports, saving billions of dollars.
Similarly, electricity generation from furnace oil has dropped from around 35 percent a decade ago to below one percent, while LNG usage has increased, contributing to stability in the energy sector and reducing pressure on the national budget.
