$16b fossil fuel import bill strains reserves

KARACHI:

Pakistan's growing dependence on imported fuel is putting severe pressure on its foreign exchange reserves, making immediate investment in renewable energy essential, said Federal B Area Association of Trade and Industry President Sheikh Muhammad Tehseen.

He said Pakistan's oil imports had increased by 5.76% annually, while the country spent more than $16 billion on fossil fuel imports.

"Fossil fuel imports now account for 24.2% of Pakistan's total imports," he added, warning that the rising import bill poses a serious threat to economic stability.

Tehseen said Pakistan had set a target to cut carbon emissions by 50% by 2035, requiring the country to accelerate its shift towards cleaner energy sources. He said solar, wind and hydropower had moved beyond the status of alternative energy sources and had become an economic necessity for Pakistan.