Pakistan is working to increase its domestic coal and natural gas production in the coming years to meet the country’s growing energy needs through local and sustainable sources.
According to the Pakistan Economic Survey 2024-25, presented by Finance Minister Muhammad Aurangzeb, coal output is expected to rise as mining begins at Thar Coalfield Block-I and operations expand at Block-II.
Coal continues to be an important energy source in Pakistan, mainly for electricity generation. From July to March FY 2025, the power sector used 69.7% of the country’s coal, about 11.28 million tonnes. The cement and other industries consumed 16.1% (2.6 million tonnes), while brick kilns used 14.2% (2.29 million tonnes). Power plants at Thar Coalfield mostly rely on local coal, but imported coal is still used by other sectors.
At the same time, the government is encouraging greater use of natural gas, which is known for being clean, safe, and efficient. In FY 2024, local natural gas made up 29.3% of the country’s total primary energy supply.
Pakistan has a vast gas pipeline network stretching over 218,000 kilometres, serving more than 10.7 million customers across the country. To meet demand, Regasified Liquefied Natural Gas (RLNG) is also being imported. The country currently has a re-gasification capacity of 1,200 million cubic feet per day (MMCFD) through two Floating Storage Regasification Units (FSRUs).
From July to March FY 2025, Pakistan’s average daily gas use was 3,143 MMCFD, including 798 MMCFD from RLNG. The largest consumers were the power sector (973 MMCFD), households (777 MMCFD), and the fertiliser industry (764 MMCFD).
During this period, 13,591 new gas connections were provided-11,755 for homes, 1,786 for businesses, and 50 for industries. Gas companies SNGPL and SSGCL also laid 1,221 kilometres of main pipelines and 65 kilometres of service lines, extending supply to 84 new villages and towns.
These steps reflect the government’s focus on increasing local energy production to strengthen energy security and reduce dependence on imports.