Challenges and Prospects in Exploiting Oil and Gas Resources in KP: Critical Review of Government Policies in the Light of Best International Practices since 2005 & Policy Options

Abstract

Energy is a critical component of the economy of a nation. Its significance is recognized for socio-economic development. It is the backbone of nearly all modern human activities, and human civilization's achievements have been made possible by the effective and widespread production of diverse types of energy. Pakistan is an energy-scarce country, and its need for energy is anticipated to increase in the future. The import of oil and gas is much costly and will lead to spending of much of foreign reserves. The most economical and foresighted way is to explore and exploit domestic energy reserves in an optimal way. This study is an attempt in that direction. It is restricted to Khyber Pakhtunkhwa (KP) and tries to identify and explain the prospects and challenges in oil and gas exploitation in KP along with the critical review of various government policies and to put forwards some policy recommendations to the government for effective policy making. The study is descriptive, analytical and explanatory. It is a library based research where mostly secondary data has been used. The study shows that KP has vast oil and gas reserves and provides viable opportunities for exploitation. However, some acute challenges dim the chances of fully exploiting these reserves.