Dollar free fall only after oil and gas indigenous production to sustain Pakistan economy.

Byline: Raziuddin (Razi)

Oil and Gas is life line of any economy. Oil and Gas producing countries have become advanced states with higher per capita. Although Pakistan is rich in Oil and Gas resources yet the import lobbies and commission agents have kept it poor; forcing it to carry the begging bowl. Import of Oil and Gas is the largest reason of dollar drain and free fall of Pak Rupees. Pakistan imports $16 to 20 billion annually but if this drain of dollars is replaced with indigenous Oil and Gas then Pakistan does not have to beg IMF, China, UAE or KSA and dollar will free fall to Rs 30 from Rs 160. This will cause reduction in prices, better education, creation of jobs, enhanced exports and improvement in quality of life. With $16-20 billion in hands the destiny of Pakistan can be turned around in 4 to 5 years; with some $8 billion of forex saved by 2021.

Of course, Pakistan needs to make investor friendly policies in the hydro, solar, wind and alike alternate and renewable energy resources to have these asap, yet let there be no doubt that without oil and gas, our economy would be in shambles - atleast till 2040. The World Energy Outlook by international agencies, including world institutions of repute like International Energy Information Agency (IEIA) in high clarity has given a verdict that atleast till 2040 the world as a whole and developing nations specially will remain highly dependent on Oil and Gas. The oil and gas demand is here to stay till 2040. Middle-East is spending $25 billion to build new grass root refineries, North America $12 billion, Europe $5 billion, and South-East $20 billion.

The readers may note that KSA/Aramco intends to build a refinery complex worth $10 billion in Pakistan and $20 billion worth in India - for what; for on coming high demand of petrol, diesel, jet fuel. One surprise, contrary to most off the cuff analysts speeches, the worldwide furnace oil demand will remain at 7 million barrels per day till 2040. Therefore, Pakistan may not lower it guards when it comes to Oil and Gas. Pakistan needs to aggressively work on production of Oil and Gas to make its economy robust, double digit GDP growth, create job opportunities and make dollar come to its well-deserved parity of Rs 30.

Pakistan has all the ingredients to be self-sufficient in oil and gas within the tenure of this Government. Thus, causing free fall of $ to Rs 30. Gas average sale price can be halved; increasing exports, jobs, GDP.

Pakistan...