Foster investment inflow: Policymakers urged to remove power sector hurdles
ISLAMABAD: Energy sector experts and industry executives on Thursday urged policymakers to remove bottlenecks, including over-regulation, extend fiscal incentives and ensure faster decision-making and implementation to attract both local and international investment.
These views were expressed during discussions and presentations at the Pakistan Energy Conference, hosted by the Petroleum Institute of Pakistan (PIP) under the theme “Transforming Pakistan’s Energy Sector.”
The conference opened with a welcome address by the Chairman PIP, Mr. Syed Muhammad Taha, MD Pakistan State Oil, followed by a video message from the Federal Minister for Energy (Petroleum Division), Ali Pervaiz Malik, who underscored the government’s commitment to energy sector reforms, sustainability, investment facilitation, and long-term energy security.
READ MORE: OICCI proposes reforms in power sector
Federal Minister for Petroleum Ali Pervaiz Malik did not attend the conference in person but conveyed his message through a recorded video.
However, Managing Director Oil and Gas Development Company Limited (OGDCL) Ahmed Hayat Lak, Chairman Oil and Gas Regulatory Authority (OGRA) Masroor Khan, along with chief executives and senior officials from the energy sector, participated in the event. Chief Executive Officer of the Petroleum Institute of Pakistan, Shehryar Omar, also addressed the conference.
Experts and private sector executives acknowledged the government’s efforts to develop the energy sector but pointed out several persistent challenges hindering investment, including excessive regulation and lack of access to reliable data for investors.
They stressed the need for swift decision-making and execution, along with fiscal incentives for both local and foreign investors in the oil and gas sector. The participants also called for easing regulations related to tight gas and offshore exploration and development.
According to experts, energy consumption has declined by nearly 50 percent over the past three years, as energy demand is more sensitive to income levels than prices, with the residential sector being an exception. Currently, almost 80 percent of energy supply is derived from oil, coal, and gas, though this share is expected to decline over time.
Sector experts further noted that demand for hydropower, LPG, and renewable energy is likely to increase, while the share of oil and gas in the energy mix may decrease. Energy demand from the residential sector is expected to grow more rapidly compared to other sectors.
Experts warned that the energy import bill is likely to rise both in absolute terms and as a proportion of GDP, adding that a reform-oriented scenario appears to be the most viable option for the country.
To increase per capita primary energy supply and demand, participants emphasized the need for measures to improve energy efficiency. They suggested substituting imported coal with domestic coal, which could help reduce the import bill by up to $8 billion by 2050.
It was also recommended that gas be utilized more effectively to minimize imports, while imported natural gas used for electricity generation could gradually be replaced with renewable energy resources over the next 10 years. Similarly, imported coal used by the industrial and power sectors could be gradually substituted with domestic coal during the same period.
Participants noted that imported electricity would continue as per existing plans, with no further additions proposed, while non-power use of oil and gas may not be easily substituted with other energy forms. They further recommended expansion of renewable energy-based power generation in the coming years.
The experts also called for the use of modern technology to improve energy efficiency and the development of an updated energy database portal to provide instant and accurate information on the energy sector.
“Pakistan needs a comprehensive vision for exploration, refining, and petrochemicals for the next 20 to 25 years. Local production of biofuels and biodiesel should be encouraged to reduce reliance on imported fuels,” the experts said.
Oil and Gas Development Company Limited (OGDCL) served as the Lead Partner of PEC, while Pak Arab Refinery Ltd (PARCO), Pakistan Petroleum Limited (PPL), Pakistan State Oil (PSO), and United Energy Pakistan Ltd (UEPL) joined as Gold Partners. Universal Gas Distribution Company (UGDC) participated as the Silver Partner, reflecting strong industry support for the conference and its objectives.
A key highlight of the event was the presentation on the Pakistan Energy Outlook 2025, which provided strategic insights into energy demand, supply dynamics, and the need for integrated planning in light of economic and environmental considerations.
Copyright Business Recorder, 2026