Pakistan Energy

From 1947 to the early 1990s, the economy made considerable progress in the transformation from a wood-burning base to modern energy sources. The process remains incomplete. Bagasse (the woody residue left over from crushed sugarcane), dung, and firewood furnished about 32 percent of all energy in FY 1988. Some localities had been denuded of firewood, forcing the local population to use commercial energy sources, such as kerosene or charcoal. Domestic sources of commercial energy accounted for 77 percent of all commercial energy in FY 1990. The major domestic energy resources are natural gas, oil, and hydroelectric power. The remainder of energy requirements are met by imports of oil and oil products.
Crude oil production increased sharply in the 1980s, from almost 4.0 million barrels in FY 1982 to 22.4 million barrels in FY 1992. This increase was the result of the discovery and development of new oil fields. Despite this expanded production, however, about 28 million barrels of crude oil were imported annually in the early 1990s. The production from domestic oil refineries also rose in the 1980s, reaching 42 million barrels annually in the early 1990s. However, oil products imports accounted for about 30 percent of the value of all oil imports.
Pakistan vigorously pursued oil exploration in the 1980s and early 1990s and made a number of new discoveries. In the early 1990s, the most productive oil field was at Dhurnal in Punjab, accounting for 21 percent of total output in FY 1993. The Badin area in southern Sindh was the site of a number of discoveries in the 1980s, and its proportion of total output has continued to increase over the years. In the early 1990s, more favorable terms on pricing and repatriation of profits stimulated the interest of foreign oil companies. About twenty foreign companies are engaged in oil exploration, but poor security for workers and property in remote areas of Balochistan and Sindh remains a significant constraint on foreign investment.
Some development of renewable energy sources has been undertaken, primarily for rural areas so isolated they would not otherwise have electricity in the foreseeable future. The aim is to upgrade village life while lowering urban migration.