Wajeeha Bilal
Over the years, the tools of warfare may have changed but the trade remains the
same. Swords, guns, gauntlets, and grenades have increasingly been replaced by
economics. The tip of the economic spear has lately been oil and the influence
over its pricing. The drastic rise and fall of global prices because of fast
paced changes in supply and demand often result ina shift in the balance of
power among the cartels. Whether it is the natural series of events or man
created that lead to the sky-rocketing prices, the political oil controllers
depend on the public market and consumers who can do much to change the outcome
but are not able to do much in this case. To counter the blow of energy
politics, a robust and inclusive energy policy consistent with the needs of
today is required at a global scale.
The strategic importance of power and fossil fuelsmakes energy the leading
factor in geopolitics and international diplomacy. Although there have been
significant developments in countering that component with alternative and
renewable energy supplies, the influence of oil has still managed to withstand
the test of time. Albeit focusing on alternative and renewable energy helps
countries move past the geopolitical component of the fossil fuel industry, the
technology’s reach has still not met its grasp and the overwhelming majority of
global energy systems are still linked or dependent on fossil fuels.South Asia
is one such example of a market caught in the crosshairs. Despite a move towards
energy transition, the demand still outpaces the gait of alternative fuels.
Currently, with its rapidly growing energy sector, the region is poised to play
an expanding role as a global energy market and constitute a component of
geopolitics where Pakistan, a significant developing countrygrapples with
dailychallenges in meeting the rising energy demands and climate change issues.
The energy sector is a pivotal realm at present, where the United States, China,
and the OPEC+ are the dominating power players.The United States’long-standing
failure to bring peace in Afghanistan and its hasty withdrawal will leave
Pakistan’s neighborhood vulnerable to external vectors. China in the meantime is
expanding its control and has made Pakistan center of its OBOR and CPEC
initiatives, with main contribution in infrastructure projects.China, India
&Pakistan constitute a fast developing region that isavailing energy resources
to provide for the growing energy and financial demands with much room
fordiplomaticcooperation and regional development.
Presently, the demand of energy in Pakistan is greater than supply and the
energy weave is based on expensive fuels. To resolve its energy problems,
Pakistan is in dire need of implementation of various supply and demand side
plans, through an allied energy policy anda proper operative system. Pakistan
should be able to make use oflow-costdomestic energy resources with major usage
of renewable energy.
As a large developing country, Pakistan is facing many problems, especially
related to overcoming poverty and improving the health, education, and
employment opportunities for low-income groups. Pakistan has pursued high-cost,
short-term fixes while obtaining billions in infrastructure loans, mostly from
China, for coal and nuclear plants that could cause financial adversity in the
energy sector. The country’s energy problems are profound and deep rooted that
have more to do with the inefficient government and its failure than with the
supply of resources.
The energy sector is important for development in solvingPakistan’s problems,
but corruptcontribution, weak governance, and poor budgetary control of the
sector are major obstacles. Unlike India or China, Pakistan is a small
contributor to the greenhouse effect, but it could escalate in the future owing
to the poor investment and its choice of fuel. Rising energy demands from
increasing urbanization, incomes, and population have placed pressure on
domestic resources and eventuallyPakistan has increased its reliance on fossil
fuel imports, though according to the US Geological Survey, it has petroleum
resources of 164 million barrels of oil and 24.6 trillion cubic feet of natural
gas.
United Nations (UN) Secretary-General António Guterres, in his closing remarks
at the UN Climate Conference in 2019, called for countries to stop building coal
plants after 2020. It might be overly ambitious for developing countries like
Pakistan, but it would be more appropriate and helpful for its future to focus
future projects on renewable energy by improving its policies for the energy
sector. Pakistan is currently focusing on energy projects under its new
renewable energy policy to enhance the exploration of domestic energy resources
and engage foreign investment to uplift its economy.It is focusing on promoting
oil and gas exploration opportunities aiming to attract investment from Saudi
Arabia, the UAE and other Gulf countries, to provideviable energy supply, lower
its energy imports and boost its economy.
In a meeting with the UAE Ambassador Hamad Obaid Ibrahim Salem Al-Zaabi,
Pakistan’s Federal Minister for Energy Minister Omar Ayub Khan analyzedthe
development on the current petroleum projects and discussed ways to promote the
Pak-UAE cooperation in the energy sector. “The collaboration in the energy
sector would provide a fresh impetus to economic ties between the two brotherly
countries” the UAE envoy said.
Pakistan’s Finance Minister Shaukat Tarin has also stated in a press conference,
that an understanding had been reached with Saudi Arabia for revival of its oil
facility on deferred payments. He informed that Pakistan has also availed the
defer oil payment facility from Saudi Arabia and Petroleum Levy would increase
in next fiscal year. However, the government is expecting that oil prices in
international market would decline after lifting the ban on Iran. The government
will have the chance to consume the levy by retaining the impact of decline in
international oil price.
Pakistan’s future could shape and elevate from successful investment by
international financial institutions, in solar and wind projects along with its
large hydro development projects, at the same time funding and enhancing its
projects and future policies. It is crucial to improve the conditions and
function of its present policies keeping with the dramatic climate change and
global warming.However, the biggest hinderance towards the implementation of any
measure comes from incompetent leadership. A long draft of hopeful policies can
have no effect unless there is a clean ambition to implement them with honesty
by the leaders, who desire to serve the interests of their country. Fundamental
reforms and policies can always followan efficient governance.