Government of Pakistan Three Years Progress in Petroleum, Natural Resources and Water & Power Sectors as well as Improving Road Connectivity in the Country June, 2016

Government of Pakistan Three Years Progress in Petroleum, Natural Resources and Water & Power Sectors as well as Improving Road Connectivity in the Country June, 2016

Petroleum and Natural Resources

The current gas supply in the country is less than 4 Billion Cubic Feet Per Day (BCFD), while the demand is over 6 BCFD.

The Government’s target is to have surplus gas in the system for all consumers including power plants, fertilizers, industry, domestic, and the NSG Sector by 2018.

The Iran-Pakistan gas pipeline project could start with 250 Million Cubic Feet Per Day (mmcfd) of gas flows and then gradually go up to 750 mmcfd.

The Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project envisaged 1,325 mmcfd of gas to Pakistan and is scheduled to be completed in January 2020.

Import of liquefied natural gas is the only short to medium-term solution of Pakistan’s energy needs. Currently, 400 mmcfd of LNG is being supplied to the system which will increase to 1200 mmcfd in June 2017. The target is to inject 2,000 mmcfd of LNG in the system by mid-2018.

At present, all power plants and fertilizer are getting the required gas and the industry is getting natural gas 24/7. Gas is also available for the CNG sector.

Rs.850 billion worth of gas pipeline network and four LNG terminals at a cost of Rs.120 billion are in different stages of implementation.

LNG-based power plants producing a total of 4,000MW will become operational by mid-2017.

The Highest Crude Oil Production of 100,000 Barrels Per Day (BPD) was achieved on 7 December 2014. The current domestic production is 90,000 BPD, while 400,000 BPD is being imported. The country’s refining capacity is 11 Million Tonnes Per Annum (MTPA) whereas the consumption is 23 MTPA.

Investments in oil storages, oil pipelines and deep conversion refining capacity are needed. Deep conversion refinery having the capacity of 250,000-400,000 BPD with a petrochemical complex worth US$ 5 billion is the major investment opportunity.

Pakistan will shift gasoline from non-standard 87 RON to 92 RON from 01 October 2016 and diesel will be shifted from non-Standard 3000+ ppm Sulphur Diesel to 500 ppm Sulphur Euro II Diesel from 01 January 2017.

The reliance on fuel oil will be reduced by shifting power generation to high-efficiency LNG based gas.


In 2013, the country faced a power deficit of 5,500 MW. The industrial sector and urban areas had 12 hours load shedding, while the rural areas had 14 hours.

To meet the challenge, the Government adopted a strategy with the following elements: improving cash flows; optimizing generation; having a predictable load management; better customer service; and investment facilitation.

US$ 58 billion worth of investment in the power sector is expected for generation of 30,948 MW by 2022 of which projects worth US$36 billion have been secured and several of them have achieved financial close. Pakistan’s energy mix in 2022 will be: 38% from Hydel, 14% from Renewable, 16% from imported coal, 13% from indigenous coal, 12% from imported LNG and 7% from nuclear.

A peak generation of 17,120 MW was achieved in June 2016. By the end of 2016, the country will be producing 19,917 MW of electricity.

At present, the Industry is facing no load shedding, except during Ramazan. Urban consumers are facing 6 hours of load shedding and the rural 8 hours. The Government is committed to eliminate load shedding by 2018.

Of 10,400 MW portfolio of the China Pakistan Economic Corridor, 8,630 MW is currently under different phases of execution.

Government managed to improve recoveries of electricity bills to 93.40% in 2015 from 88.70% in 2013. It reduced Aggregate Technical and Commercial losses (AT&C) from 27.8% in 2013 to 23.4% and Transmission and Distribution losses (T&D) from 18.6% in 2013 to 18% in 2015.

Work is in progress on upgrading and improving the transmission lines and network.


In 2013, the length of motorway in the country was 580 km. By 2018, it will be extended to 1800 km.

National Highway Authority is currently implementing Rs. 850 billion worth of road projects which will be completed in three years.

The 10 km long Lowari Tunnel will be completed by the first quarter of 2017, which will link Chitral to the rest of the Country.

The Government was using existing motorway/road network for the Eastern alignment of the CPEC while simultaneously working on its Western alignment. Work on 200 km Gwadar-Hoshab section has been completed, while 449 km Surab-Hoshab section will be completed by the end of this year. Other sections of the Western alignment are also at various stages of construction.

NHA will also strengthen East-West Connectivity in the country.

The NHA has targeted to reduce the ratio of traffic accidents by one-third. The points on roads where there was a recurrence of accidents (Black Spots) were being identified and the Authority has allocated Rs. 1 billion for road safety.

June 20, 2016
Washington D.C

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