BMP calls for urgent measures to reduce LNG dependence

Islamabad
The Businessmen Panel (BMP) of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has called for urgent measures to reduce Pakistan’s dependence on imported liquefied natural gas (LNG) and strengthen the country’s energy security, as disruptions in international LNG supplies expose the vulnerability of the domestic power and industrial sectors.
BMP Chairman and former FPCCI President Mian Anjum Nisar said Pakistan needed a comprehensive and long-term energy strategy that could protect industry and the wider economy from international fuel-price volatility, shipping disruptions and geopolitical developments.
“Pakistan must reduce its dependence on imported fuels and accelerate the development of indigenous energy resources to strengthen energy security and protect the economy from external shocks,” said Mian Anjum Nisar.
His remarks come in the wake of growing concerns over LNG supplies following disruptions around the Strait of Hormuz, a key international energy route.
Pakistan is particularly exposed because Qatar and the United Arab Emirates together provide about 99 per cent of the country’s LNG supplies, while LNG accounts for roughly 30 per cent of total gas supply, according to the Gastech report, ‘The Outlook for Gas and LNG Markets in Asia’.
The report said the disruption had prompted Asian countries to reconsider the resilience of their domestic energy and power systems and examine ways to reduce their exposure to sudden interruptions in fuel supplies.
For Pakistan, the issue is particularly important because LNG is used across several critical sectors, including power generation, fertiliser production and industry.
Any prolonged disruption or sharp increase in LNG prices can therefore have consequences beyond the energy sector, affecting electricity costs, industrial production, fertiliser availability and the overall cost of doing business.
Mian Anjum Nisar said Pakistan should accelerate investment in domestic and renewable energy resources while improving the efficiency and reliability of the existing energy system. He stressed that affordable and reliable energy was essential for industrial growth, export competitiveness and investment.
The BMP chairman has repeatedly highlighted the impact of high energy and operating costs on Pakistan’s businesses. Earlier, he called for policies that could lower the cost of doing business and improve the competitiveness of Pakistani exporters. The business community, he maintained, could not expand production and exports without predictable and reasonably priced energy supplies.
The latest LNG disruption has also renewed the debate over diversification of Pakistan’s energy mix. The Gastech report pointed towards greater reliance on renewable energy, including utility-scale solar, wind power and commercial rooftop solar, together with energy-storage systems.
It also highlighted the importance of investment in gas-storage infrastructure, more flexible power-generation systems and strategic fuel reserves. Such measures could provide additional protection against unexpected interruptions in international energy supplies.
Mian Anjum Nisar said Pakistan should view energy security as a central component of its economic and industrial policy rather than treating fuel shortages only as a short-term supply problem.
He said greater development of hydropower, solar, wind and other indigenous resources could gradually reduce pressure on the import bill while providing industries with more predictable energy supplies.
The BMP chairman also stressed the importance of improving the transmission and distribution system so that additional domestic generation could be efficiently delivered to consumers. Investment in infrastructure, he said, should accompany efforts to diversify the generation mix.
The Gastech report noted that recent developments in the Middle East had demonstrated how quickly geopolitical tensions could affect global gas and LNG markets. The resulting uncertainty over shipping routes and international fuel prices has increased the importance of strategic planning for countries heavily dependent on imported energy.
Pakistan’s energy sector has remained under pressure from high generation costs, circular debt and expensive imported fuels. The BMP has previously raised concerns over the growing financial burden of the energy sector and called for structural reforms to improve its sustainability.
Mian Anjum Nisar said policymakers should therefore pursue a coordinated strategy involving government agencies, energy companies, industrial organisations and other stakeholders. Such coordination could help identify supply risks earlier and develop practical alternatives before disruptions begin affecting productive sectors.
He said the country also needed to encourage private-sector investment in energy infrastructure, particularly projects that could improve storage capacity, domestic generation and supply reliability.
The Gastech assessment has further suggested that countries affected by energy disruptions may need to maintain larger operating reserves and strategic fuel stocks, while also exploring cross-border electricity trade to manage temporary shortages.