Oil and gas exploration and production companies are looking to invest $5 billion in Pakistan’s energy sector in the next three years.

The development was announced by the government of Pakistan after a meeting of E&P companies with Prime Minister Shahbaz Sharif on Saturday.

As per a statement released by the Government of Pakistan, the PM has constituted a committee headed by Deputy Prime Minister Ishaq Dar.

“After consultation with the representatives of the sector, the committee will formulate proposals to formulate an attractive policy for the exploration and development of petroleum and gas reserves in the country,” read the statement.

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Expressing confidence in the Prime Minister’s leadership, the E&Ps announced to invest $5 billion in Pakistan in the next three years, according to the statement.

As per the statement, PM Shehbaz invited E&Ps to explore offshore reserves. “Exploration of domestic oil and gas reserves in Pakistan is our top priority,” he was quoted as saying.

He said that production from local reserves will make fuel and gas economical for the common man.

PM Shehbaz directed the authorities concerned to facilitate the energy sector on a priority basis.

The oil and gas sector is a crucial component of Pakistan’s economy, playing a significant role in energy supply, economic growth, and development.

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Pakistan has significant reserves of natural gas and smaller reserves of crude oil. Major gas fields include Sui, Mari, and Qadirpur, while oil fields are primarily located in the Potohar region and southern Sindh.

However, the sector remains engulfed in the vicious cycle of circular debt, unaccounted for gas (UFG), lines/distribution losses, and capacity payments-related issues.