Page 42 - CMA Journal (Mar-Apr 2026)

The Government has a role to play in this. It needs to create 4) Domestic Energy Production: Strengthening domestic
policies that encourage the development of domestic energy energy production through investment in hydropower and
sources and improve the country's energy efficiency. The coal, while improving energy infrastructure including
government also needs to invest in technologies and encourage storage facilities and transportation networks, will further
people to use less energy. support energy security.
Pakistan's energy crisis is a challenge but it is not insurmountable. 5) Energy Pricing Reform: Reforming Pakistan's energy
With the right approach and a long-term strategy, the country can pricing mechanisms is essential. This means creating a
create a more sustainable energy system and reduce its reliance on system that is fair, sustainable, and encourages reduced
imported oil and LNG. This will require a lot of work and dedication energy consumption. The government can also introduce
but it is essential for Pakistan's economic future. taxes on luxury fuels and reduce the amount of fuel
Austerity Measures and Economic Stability allocated to government officials.
6) Industrial Energy Efficiency: Enhancing energy efficiency
One of the major steps taken by the Government of Pakistan was
rolling out a host of austerity measures aimed at saving fuel and across various sectors requires motivating industries to not
cutting down public spending amid the global energy crisis. For only consume less energy but also adopt more efficient
instance, the government offices have been asked to work only technologies. The government could introduce incentives
four days a week. Besides this, school closures have also been for energy-saving units and those actively reducing their
introduced as a temporary measure, and universities have carbon footprints.
switched to online modes of teaching in order to cut down on 7) Public Transport and Energy Efficiency: Improving
fuel consumption related to transportation. Pakistan's public transport system and overall energy
Moreover, the government made a drastic 50% cut in the fuel efficiency is equally important. This requires investing in
allowances given to vehicles used for official purposes and also modern technologies and promoting the adoption of fuel-
grounded almost 60% of government vehicles for some time. efficient vehicles.
Furthermore, earmarked spending controls included 8) Energy Demand Forecasting and Contract Management:
lawmakers' salaries being cut, cabinet members making Strengthening Pakistan's ability to forecast energy demand
voluntary salary sacri ces, limitation on foreign travel, and and manage supplier contracts more efficiently is vital.
lowering non-essential government expenditures. Establishing a robust forecasting mechanism for domestic
These measures re ect a responsible economic management and energy requirements, combined with offering incentives to
show that such initiatives, although difficult in the short term, lead suppliers delivering energy at competitive prices and with
to the overall economic development in the long run. Since these greater exibility, would signi cantly enhance Pakistan's
austerity measures help in minimizing unnecessary use of fuel and energy security.
government spending, weathering external economic shocks, 9) Regional Energy Cooperation: Fostering regional energy
strengthening Pakistan's ability to manage effectively, controlling
collaboration is an important long-term dimension of
in ationary pressures, and stabilizing foreign exchange reserves are
Pakistan's energy strategy. This involves engaging with
some of the resultant bene ts which are achieved through the
neighboring countries to establish joint energy systems,
implementation of such measures.
supported by cross-border pipelines and power exchange
Strategic Way Forward agreements.
1) Strategic Energy Reserves: he establishment of petroleum
and LNG reserves must be an immediate priority, involving Conclusion
the setting up of storage units capable of satisfying the
Ultimately, Pakistan's energy shortage cannot be tackled by
nation's consumption requirements for at least 60 to 90
piecemeal measures. To manage the country's energy resources
days. This would signi cantly lower the country's exposure
effectively, the government must develop a comprehensive
to sudden shocks and make the energy system more stable
in the long run. long-term plan. In addition to investing in the latest technology,
it should also encourage society to conserve energy.
2) Energy Source Diversi cation: Pakistan needs to diversify
the way it sources energy by looking for more suppliers of Implementing these strategies will enable Pakistan to establish
an environmentally sustainable energy network while reducing
oil and LNG and lessening dependency on just a few major
its dependency on imported oil and LNG.
suppliers. Policymakers might also consider promoting the
production of hydropower and coal as additional energy
sources alongside oil and LNG. About the Author: Syed Immad Uddin Hussaini is an economic
3) Renewable Energy Expansion: Accelerating the growth of researcher and policy analyst with specialization in applied economics,
renewable energy production in Pakistan, particularly trade policy, and data analysis. He currently serves as a Research
solar, wind, and hydroelectric power, is a critical priority. Associate at the Ministry of Commerce, Government of Pakistan, and
brings prior experience from FPCCI and ICMA Pakistan in economic
These energy sources are not only clean and research, market analysis, and policy reporting. Holding an MPhil in
environmentally friendly but also sustainable, and could Applied Economics, he leverages analytical tools such as Excel and
effectively help Pakistan reduce its dependence on EViews to generate data-driven insights that support effective
imported oil and LNG. policymaking and sustainable economic growth.

40 ICMA’s Chartered Management Accountant, Mar-Apr 2026