Pakistan has witnessed a remarkable increase in its fuel oil exports, soaring more than fivefold, as the nation makes a strategic shift away from reliance on dirtier energy sources and embraces nuclear power for electricity generation.
During the financial year ending in June, Pakistan exported approximately 277,000 tons of excess fuel oil, a stark contrast to the 54,000 tons shipped in the previous year. This upsurge in exports corresponds to a decline in domestic consumption of fuel oil.
The transformation in energy sources is evident in the country's power generation trends. Notably, power generation from fuel oil plummeted by 62% in the past year, while coal usage also dropped by 22%, as reported by Arif Habib Ltd., a local securities firm.
In contrast, Pakistan's adoption of nuclear energy surged by 32% during the same period, indicating a substantial transition towards cleaner power sources. Despite this transition, the country's overall power generation experienced a decline.
As a result of these shifts, Pakistan finds itself grappling with an excess of fuel oil. Refineries like Pak Arab Refinery Ltd. and Pakistan Refinery Ltd. have been compelled to expedite exports of this surplus fuel. Samiullah Tariq, the Head of Research at Pakistan Kuwait Investment in Karachi, highlighted this situation, attributing it to the swift changes in the country's energy landscape.