Policy consistency, local resource mobilization key to energy security: experts

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 20th May, 2026) Parliamentarians and experts, at a great debate on Wednesday, have warned that geopolitical tensions, particularly the middle East conflict and disruptions around the Strait of Hormuz, have exposed Pakistan’s vulnerability to external energy shocks. There is an urgent need to effect structural reforms in the energy sector.

‘The Great Energy Debate: Way Forward for Fiscal Discipline’ was organized by Sustainable Development Policy Institute here on Wednesday, said a press release.

The speakers also called for targeted subsidies, integrated energy planning, transparent policymaking and accelerated investment in local and renewable energy resources to steer Pakistan through mounting fiscal and energy challenges.

Federal Minister for Petroleum Ali Pervaiz Malik said Pakistan has successfully maintained seamless fuel supplies despite unprecedented global pressures and volatility in crude oil prices. He further said the government has managed the crisis without adding “a single rupee” to circular debt in the oil supply chain. Resilient energy value chains could not be built on a single pillar, he said and suggested that practical and economically sustainable energy transition is needed to balance conventional fuels with renewable energy.

The minister revealed that Turkish Petroleum is partnering with local firms for the exploration of new oil fields in Pakistan. The country requires $200 billion to $300 billion in investment to build the infrastructure necessary for renewable energy expansion, he said, adding that financial interventions are needed to strengthen energy infrastructure and strategic reserves.

Minister of State for Finance Bilal Azhar Kayani said the diversification and indigenization of energy supply chain through hydel and solar is the priority of the government. He said refinery upgrades are underway to achieve cleaner Euro-5 compliant fuel production. He added that electric vehicles represent the future and market-driven adoption would increase if EVs became economically viable for consumers.

SDPI Executive Director Dr Abid Qaiyum Suleri said the dialogue is being held at a critical time when the Federal budget was under preparation amid an IMF programme and escalating regional tensions.

He said the government had managed fuel supplies efficiently despite global uncertainty, noting that unlike some regional countries, there had been no fuel rationing in Pakistan. He stressed the need to replace blanket subsidies with targeted support, like the Benazir Income Support Programme (BISP). Dr Suleri urged policymakers to rethink Pakistan’s solar energy rollout, grid connectivity and long-term energy mix, arguing that the ongoing Middle East crisis would accelerate the global shift towards nuclear, solar and renewable energy sources.

Later, during a panel discussion, he warned that energy supply shocks could worsen as inventories dry up and stressed the need for transparency in government policy and revenue decisions to rebuild public trust. He said the social protection net should be expanded to support vulnerable middle-income groups, who were increasingly excluded from relief mechanisms.

MNA Dr. Nafeesa Shah warned that Pakistan remained highly vulnerable to disruptions in Gulf oil supplies, with nearly 70 per cent of its oil imports routed through the Strait of Hormuz.

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She criticized poor governance, irrational agreements and rising circular debt, and highlighted that Pakistan lacked strategic oil and gas reserves. She called for a new energy paradigm based on sovereignty, local resources, renewable energy and equitable energy federalism. Dr Shah urged policymakers to promote electric vehicles, address energy deprivation issues in small districts and include provinces in energy planning.

Senior Journalist Fahad Hussain said the purpose of the forum is to create informed public discourse and widen democratic space on complex national and global issues. He said Pakistan faced circular debt, policy inconsistency, imported fuel dependence and rising energy insecurity, thus requiring a broader national dialogue instead of political polarization.

Chairing the concluding session, Chairman of the National Assembly Standing Committee on Finance Syed Naveed Qamar said Pakistan did not lack solutions but lacked fiscal space to absorb energy shocks. He stressed the need for governance reforms, indigenous fuel resource development and a clear roadmap for local energy mobilization in the upcoming budget.

During the first technical session, CEO Attock Refinery Adil Khattak called for accelerated refinery modernization and billions of Dollars in investment to upgrade local refining capacity. He also proposed integrating the energy ministry under unified leadership.

PRIME Executive Director Dr. Ali Salman advocated deregulation and consumer-friendly pricing mechanisms, while senior economist Dr. Khaqan Hassan Najeeb called for integrated energy planning, a single coordinated regulator and greater use of railways instead of fuel-intensive road freight.

Senior economist Afia Malik said energy affordability and access should be central to energy security policy. She highlighted the absence of battery and energy storage systems in Pakistan and stressed the need for policy consistency and tax reforms.

SDPI Deputy Executive Director (Research) Dr Sajid Amin Javed said panic-driven fuel price decisions and delayed transmission of global price changes have worsened inflationary pressures and market uncertainty.

Former federal minister Khurram Dastagir Khan called for strengthening the power ministry with professional expertise, promoting competition and aligning energy governance with employment generation and industrial growth.

Former chairman of board of Investment Haroon Sharif called for technology-driven governance reforms, diversification of supply chains and a shift from road-based freight to rail transport. He also suggested renegotiating the Pakistan-Iran gas pipeline for geopolitical and economic gains.

Senior journalist Shahbaz Rana said fiscal stability is the need of hour, as poor and vulnerable segments of society are bearing the brunt of economic pressures. He said that political wisdom is needed for a revived governance system.

Senior journalist Asma Shirazi criticized elite capture and policy inconsistency in the energy sector. She argued that policies lacked public consultation, which is why they failed to address people’s problems.

Journalist Khurram Husain observed that Pakistan had accumulated one of the region’s largest circular debts after decades of unsustainable power sector policies and IPP arrangements.