Global energy supply chains are under pressure after US and Israeli strikes on Iran, sending shockwaves through countries that rely heavily on imported fuel, including Pakistan.
QatarEnergy has halted cargo shipments, with the Strait of Hormuz blocked, a crucial waterway that carries nearly 30% of the world’s seaborne oil. For Pakistan, this is especially concerning, as about two-thirds of the country’s LNG imports pass through this route.
Experts warn that every $10 rise in global oil prices could increase Pakistan’s current account deficit by $1.5-2 billion annually. This makes developing domestic energy resources more urgent than ever.
One potential solution is the Thar Coalfield, which has massive reserves estimated at 175-186 billion tons. Pakistan’s coal production has already risen from 12 million tons two years ago to 19.1 million tons in FY2024–25. By early 2026, Thar coal projects are expected to generate around 3,300 megawatts of electricity, offering a cheaper alternative to expensive LNG and furnace oil.
Currently, electricity from LNG or furnace oil could cost up to Rs. 50 per unit during global crises, while power from Thar coal may cost only Rs. 5–8 per unit, a game-changer for households and businesses.
Analysts say Pakistan’s growing reliance on imported LNG makes the country vulnerable to high prices and uncertain supply. They recommend prioritizing domestic energy sources and reserving limited gas for export-oriented industries to keep the economy stable.
Prolonged Middle East tensions could also push inflation higher and affect tax revenues and industrial output. Energy experts stress that accelerating reforms and expanding domestic resources like Thar coal is critical to avoid long-term energy shortages and rising electricity costs.