Just as Pakistan grapples with severe economic challenges, including political instability and rising debt, the government has announced the discovery of a massive oil and gas reserve.
Three-Year Geological Study
Speculated to be among the largest in the world, this find could be a game changer for the struggling economy.
According to local reports and El Economista, the discovery was made in Pakistan’s territorial waters after years of exploration and collaboration with friendly nations.
Analysts believe this reserve has the potential to drastically improve Pakistan’s economic fortunes. However, caution is warranted; previous oil discoveries have sometimes failed to deliver due to the difficulties in extracting resources competitively.
The discovery was confirmed following a comprehensive three-year geological study.
The Blue Economy
Officials describe this as the beginning of an initiative to tap into what they call the "blue economy," encompassing not just oil and gas but also other valuable marine minerals. Although initial findings are promising, the exact volume of hydrocarbons remains uncertain.
Pakistan currently produces only 60,000 barrels of oil per day but imports over 700,000 to meet its domestic needs.
Energy crises in recent years have stifled growth, with the Asian Development Bank estimating that energy shortages reduced GDP by 2 to 3% in 2013 alone. The country's public debt has soared to over 90% of GDP, compounded by persistent inflation and reliance on foreign aid, which is often unpredictable.
The newfound reserves present an opportunity for Pakistan to pivot away from its historical reliance on agriculture, particularly cotton, towards a more lucrative oil and gas sector.
As the country seeks to stabilize its economy, experts emphasize the need for caution, as past oil wealth has sometimes led to increased corruption and conflict in developing nations
