Pakistan Faces Heavy Economic Strain From Avoidable Energy Imports

Overview

• Sunday coverage of LUMS research and expert commentary highlighted an estimated Rs3.5 trillion a year spent on avoidable energy-sector imports that is worsening Pakistan’s foreign-exchange squeeze.
• Researchers noted installed generation capacity above 36,000 MW while base demand averaged about 8,000 MW from 2015–2023, producing large idle capacity and costly capacity payments to independent power producers.
• Pakistan pays roughly USD 2.7 billion for winter LNG over four months even as some domestic plants sit unused, and official April 2026 data showed commercial stocks near 25 days of diesel and 12 days of crude oil.
• A federal energy-conservation building code approved in 2023 could cut cooling demand by up to 51 percent but remains unadopted in major provinces, and a promised indigenisation plan for transmission equipment has not been implemented.
• Analysts urge practical steps to lower risk: build at least 30 days of strategic fuel reserves, enforce the building code, scale renewables and local manufacturing, and create a permanent cross‑ministerial energy-security planning body to protect industry and households.