Pakistan’s Energy Sector: Challenges and Prospects

Former Pakistan Petroleum Minister Usman Aminuddin suggested that a single federal energy ministry should be established, merging together the ministries of petroleum and natural resources and water and power

Former Pakistan Petroleum Minister Usman Aminuddin suggested that a single federal energy ministry should be established, merging together the ministries of petroleum and natural resources and water and power, for better policy coordination and taking the sector out of lingering crisis. Similarly, Alternative Energy Development Board should also be governed by the energy ministry, Mr. Aminuddin Proposed.

He was addressing as a keynote speaker in a seminar titled ‘Pakistan’s Energy Sector: Challenges and Prospects’, on January 20, 2011, which was moderated by renowned economist Masood Daher.

Talking about the energy demand and supply in the world, Aminuddin noted “the daily demand worldwide is about 86.5 million barrels per day with overall supply of 91 million barrels” and there was a strong probability of an imbalance of oil in the world economy. He also projected that oil prices would touch the USD200 a barrel marks in near future. To meet this imminent challenge, “there is a need to identify and exploit the alternative energy sources,” Mr. Aminuddin advised.

While emphasizing the utilization of country’s enormous coal reserves, he deplored that “we have not even started scratching the surface [of coal reserves].”

Aminuddin, however, raised apprehensions about the technical and f financial feasibility of Turkmenistan-Afghanistan-Pakistan- India (TAPI) gas pipeline, citing that gas reserves of the Daulatabad gas field (Turkmenistan) had not been properly assessed. He was of the view that Iran-Pakistan gas pipeline was the most feasible option.
Chairing the session, Prof. Khurshid Ahmad, Chairman IPS, argued that the failure of leadership primarily caused the current economic crises. “Pakistan is not a poor country and has a plenty of resources which could be exploited for bringing out the country from the morass we are mired in at present,” he concluded.