Pakistan’s energy shift deepens as imports rise, domestic output falls

ISLAMABAD: Pakistan’s energy sector is experiencing a notable shift in FY 2024–25, driven by a decline in domestic output and a rising reliance on imported fuels. Indigenous energy production has fallen from 53 million tonnes of oil equivalent (MTOE) to 50 MTOE, signaling growing challenges to energy self-sufficiency. In contrast, energy imports have edged up from 33 MTOE to 34 MTOE, further increasing the country’s dependence on foreign energy sources. This trend underscores the need to accelerate domestic resource development, enhance system efficiency, and diversify the energy mix to mitigate supply risks and strengthen long-term energy security.
According to the Year Book 2024-25, during the Pakistan’s primary commercial energy supply recorded a modest rise, increasing by 1.58% from 81 MTOE to 82 MTOE. This growth was driven by higher supplies of LPG, imported electricity, oil, coal, and hydel power, which expanded by 28.56%, 20.11%, 14.51%, 6.32%, and 1.21% respectively. These trends highlight the increasing contribution of these fuels—particularly LPG and oil—to meeting the country’s growing energy needs. In contrast, supplies of natural gas, LNG imports, nuclear, and renewable energy declined, with LNG falling by 4.1%, indicating tightening domestic gas availability and shifting consumption patterns. Despite mixed performance across energy sources, the overall increase in primary energy supply was supported largely by higher imports and greater reliance on non-gas fuels.
In 2024–25, Pakistan’s final energy consumption recorded a notable year-on-year increase of 8.32%,
reflecting heightened activity across several key sectors. The commercial, industrial, other government, and transport sectors registered significant growth in energy use—rising by 23.38%, 16.78%, 14.79%, and 9.44% respectively—indicating stronger economic and operational momentum. Conversely, consumption in the agriculture sector declined sharply by 30.97%, while the domestic sector posted a modest reduction of 2.01%, suggesting reduced demand in these segments. Overall, the shift in consumption patterns highlights an expanding energy requirement in productive and service-oriented sectors, shaping the evolving dynamics of Pakistan’s energy demand.
In 2024–25, Pakistan’s upstream sector experienced a mixed performance, marked by declining production but stronger exploration outcomes. Average daily crude oil output fell by 11.44%, decreasing from 70,524 barrels per day to 62,459 barrels per day, while natural gas production dropped by 7.52%, from 3,116 MMCFD to 2,890 MMCFD. Drilling activity remained limited, with only 28 exploratory wells and 30 development/appraisal wells completed during the year. Despite this reduced activity, the sector reported 21 new discoveries—exceeding last year’s count—most of which were gas and gas condensate, underscoring the continued potential of Pakistan’s sedimentary basins and the growing prominence of gas in the country during this year.
In 2024–25, Pakistan’s hydrocarbon reserve profile showed mixed trends. Proven oil reserves declined by
1.39%, decreasing from 243 million barrels in June 2024 to 240 million barrels by June 2025, reflecting continued depletion in mature fields. In contrast, proven gas reserves registered a significant increase of 26%, rising from 18.47 trillion cubic feet to 23.31 trillion cubic feet over the same period. The notable enhancement in gas reserves is primarily attributed to new gas and gas-condensate discoveries and successful appraisal activities across key exploration blocks.
In 2024–25, Pakistan recorded higher inflows of crude oil and petroleum products, reflecting improved
refinery utilization and stronger demand across key sectors. Imports of petroleum products increased by 16.61% over the previous year, while crude oil imports by refineries rose by 19.44%, ensuring sufficient feedstock availability for domestic processing. As a result, the oil import bill grew marginally from US$ 11.2 billion to US$ 11.4 billion despite the higher import volumes. This moderate rise in the import bill, relative to the substantial increase in supplies, indicates enhanced energy availability to support economic activity.
In 2024–25, Pakistan’s petroleum product consumption rose by 6.43%, from 15.3 million tonnes to 16.2 million tonnes, reflecting growing energy demand across key sectors. High Octane Blending Component (HOBC) surged by 171.18%, while High Speed Diesel (HSD), Motor Spirit (MS), and Kerosene increased by 10.28%, 6.73%, and 15.85% respectively. Furnace oil and Light Diesel Oil (LDO) declined by 28.23% and 18.50%, highlighting a shift toward cleaner and more efficient fuels. The overall trend indicates stronger sectoral activity and improved fuel utilization in the energy mix.
In 2024–25, Pakistan imported 8.74 MTOE of LNG to support domestic gas demand, demonstrating strategic management of energy supplies amid constrained domestic production. Overall natural gas consumption decreased by 5.77%, from 1,207,822 MMCft to 1,138,079 MMCft, reflecting tighter supply conditions and evolving energy-use patterns. Consumption trends varied across sectors: the industrial sector recorded a robust increase of 62.5%, while the agriculture sector grew modestly by 6.31%, indicating targeted growth and efficiency gains. Conversely, the commercial sector declined by 25.69%, and the power, transport, and domestic sectors experienced reductions of 13.7%, 12.69%, and 9.93%, respectively. These shifts highlight a more optimized allocation of limited gas resources, prioritizing high-value sectors and supporting sustainable energy utilization.
In 2024–25, Pakistan’s domestic coal production declined by 2.66% to 18.75 million tonnes; however, production of coal increased to 16.5% over the past six years. To ensure adequate supply for key industries, coal imports increased by 27.86%, supporting stable operations across power generation and industrial sectors.
Overall coal consumption rose by 4.08% year-on-year, indicating continued demand from the power and industry sectors. Of the imported coal, 51% was utilized by the power sector, while the remaining 49% supported the cement and other industrial sectors.
As of June 30, 2025, Pakistan’s total installed electricity capacity increased from 45,292 MW to 45,380 MW. The overall rise in capacity was supported by the addition of an 884 MW hydropower plant to the national grid, strengthening the share of clean and reliable generation. During the year, several non-operational hydel and thermal units were retired. Renewable energy capacity saw a minor reduction of 32 MW in Biomass/Bagasse; however, the system continued to maintain a diversified energy mix.
In 2024–25, Pakistan’s total electricity generation increased from 136,278 GWh to 140,420 GWh (+3.04%). Hydel generation rose from 39,920 GWh to 40,404 GWh (+1.21%), while thermal output increased to 70,110 GWh (+6.77%). Electricity imports also grew from 378 GWh to 454 GWh (+20.1%), strengthening overall supply. Although nuclear generation dipped from 24,998 GWh to 24,208 GWh (–3.2%) and renewable sources increased slightly, the net impact remained positive. The rise in total generation reflects improved system reliability and enhanced support for national economic activity.
In 2024–25, total electricity consumption increased to 113,139 GWh, reflecting a modest annual growth of 1.83%. Domestic consumption rose to 57,455 GWh (+4.6%), maintaining its position as the largest consumer category. Commercial use also increased significantly to 9,721 GWh (+5.7%), driven by expanding urban and retail activity. Industrial consumption showed a steady rise to 29,181 GWh (+4.9%), indicating improving manufacturing operations. In contrast, agriculture demand declined sharply to 5,882 GWh (–31.4%), Street-lighting consumption fell to 497 GWh (–24%), while bulk supply dropped to 3,573 GWh (–39%). Other government and General services sectors showed strong growth, rising by 76.1% and 8.2% respectively. Overall, the consumption pattern reflects increasing energy use in urban, commercial, and industrial sectors, while agriculture and bulk supply continued to contract.
The 2024–25 fiscal year underscores Pakistan’s ongoing transition toward a more diverse, resilient, and efficient energy system. Improvements in gas reserves, hydropower additions, and stable electricity generation strengthen energy security. However, dependence on imported fuels, declining oil reserves, and variability in renewable output remain key challenges.
The Energy Yearbook 2024–25 provides comprehensive insights to support policy planning, investment decisions, and long-term sectoral reforms critical for ensuring affordable, reliable, and sustainable energy for Pakistan’s future.