Pakistan’s Energy Sector: Flowing from the Mountains to the Sea


INSIGHT


  • PAKISTAN PLAYS A KEY ROLE IN SOUTH ASIA. THE NATION IS CRITICAL TO THE DEVELOPMENT OF ENERGY INFRASTRUCTURE IN THE REGION. PAKISTAN IS ALSO AN IMPORTANT TRANSIT STATE FOR THE FLOW OF ENERGY FROM THE INDIAN OCEAN TO CENTRAL ASIA AND, PERHAPS MORE IMPORTANTLY, TO WESTERN CHINA. 

  • CHINA HAS AN INTEREST IN DEVELOPING THE LOCAL ENERGY INFRASTRUCTURE IN PAKISTAN. MOST TRADE IS DONE THROUGH TRUCK DELIVERIES. WE WILL SEE MORE TRADE TAKING PLACE THROUGH PIPELINE NETWORKS. PIPELINES HAVE THE ADVANTAGE THAT THEY CAN REDUCE COSTS.

  • THE MOST IMPORTANT FACTOR DRIVING GROWTH IN ENERGY TRADE IS LIKELY TO BE THE STEADILY DEVELOPING CHINESE ECONOMY. THE HUNGER FOR ENERGY IS AN IMPORTANT FACTOR. THIS MAY JUSTIFY INCREASED INVESTMENT IN PAKISTAN’S ENERGY SECTOR.

  • PAKISTAN’S STRATEGIC POSITION CAN BE LEVERAGED. IT IS CLOSE TO THE GULF STATES AND THE REGIONS OF SOUTHEAST ASIA. PAKISTAN HAS ACCESS TO THE INDIAN OCEAN. THUS, PAKISTAN IS INVOLVED IN THE ENERGY TRADE OF THE INDIAN OCEAN.


 

1. Pakistan can maintain relations with a variety of nations in its vicinity.


Pakistan can engage with a wide range of actors. These actors include the Gulf States, Iran, Central Asia, China, and South and Southeast Asian nations. Many of these nations are rich in resources. With abundant energy and mineral resources west of Pakistan, these nations can contribute significantly to Pakistan’s economic development.

Pakistan could work more closely with RCEP. The RCEP has now become an important economic bloc on the Asian continent. Trade between the East and Southeast Asian economies is likely to increase. This could provide an export destination for Pakistani goods. With the construction of Gwadar Port, Pakistani manufacturers will be able to export more manufactured goods from Pakistan to Southeast Asia. The region’s energy wealth and Pakistan’s easy access to these resources would play an important role in all this.


2. Pipelines have a bright future in the Pakistani energy system.


Pakistan’s geography lends itself to the use of pipeline networks. This is especially true for pipelines that run in a north-south direction. This has partly to do with the country’s high altitude (in the north) and the long distances between locations. This also has to do with the fact that Pakistan is connected to the Indian Ocean, but most of its energy consumption takes place further north and in western China.


3. Pakistan may be the most critical component of a Eurasian power grid.


Pakistan could make a significant contribution to a new Eurasian power grid. The success of such a project depends on the littoral states along the coasts joining the new Silk Road. They could help integrate energy networks across the Eurasian continent. Due to its geographical location, Pakistan plays a central role in this.


4. Conclusion


  • Pakistan can benefit enormously from regional integration. China plays an important role in Pakistan’s economic development.

  • Infrastructure projects are particularly important for Pakistan’s economic development. Civil engineering projects form the basis for Pakistan’s trade. Trade relies on access to the regions, and trade networks reduce logistical costs. Special emphasis can be placed on regional integration with Central Asia and Western China. 

  • More and more economic activity is likely to take place near the port of Gwadar. This provides a significant opportunity for Pakistan to expand trade with countries throughout the Indian Ocean. 


5. References


Deffeyes, K S 2006, Beyond Oil: The view from Hubbert’s Peak, Hill and Wang, ISBN 0-8090-2957-X, United States.


 

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