The World Bank and IFC have supported gas and LNG energy in Pakistan which has resulted in Pakistan’s dependence on expensive fossil gas in 2022. The World Bank has been central in energy sector planning and development in Pakistan since 1950, and continues to be extremely influential in providing technical assistance and development policy finance that heavily influence its legal, regulatory, and policy frameworks.
With Pakistan’s domestic production of fossil gas in decline, the door is open to a rapid transition to sustainable renewables. Instead demand for fossil gas continues to rise. This demand is artificially inflated due to the heavily subsidised residential and fertiliser sectors. In 2016 Pakistan turned to Liquefied Natural Gas (LNG) to close the supply gap. LNG power plants now constitute 25% of total gas provision.
The World Bank and the IFC must support the Government of Pakistan to look to its own indigenous, sustainable and renewable sources and stop investing in costly imports and fossil fuel infrastructure.
The World Bank Group must: