Pakistan’s Oil output rises by 10,000 barrels due to tech innovation

ISLAMABAD: Federal Minister for Petroleum, Dr. Musadik Malik, on Thursday highlighted the profound impact of technological progress on Pakistan’s energy sector, revealing that a single breakthrough has boosted the Oil and Gas Development Company Limited (OGDCL)’s oil output by 10,000 barrels.

Speaking at a ceremony organized by OGDCL and Schlumberger, he emphasized that if four additional companies adopt similar technological innovations, Pakistan could significantly reduce its reliance on International Monetary Fund (IMF) programs for economic stability.Pak-US Tech Investment Conference to Boost Collaboration

He further pointed out that advancements worth $250 million have been introduced in the sector, marking the onset of a quiet revolution powered by cutting-edge technology.

Commending Schlumberger for its outstanding contributions to the energy industry, the minister stated that Pakistan is undergoing a transformation, with key reforms being implemented across multiple sectors, including energy.

Dr. Malik outlined three major initiatives in the energy sector: localization, electrification, and deregulation. “Our focus extends beyond energy alone; we are working on broader economic reforms,” he explained.

Detailing these initiatives, he stated, “Localization aims to produce domestically what is currently imported. Electrification involves integrating all energy sources—including renewable, green, blue, and brown energy—into a unified framework, aligning with the global transition towards electric power.”

He stressed that deregulation and fostering private sector growth represent the most critical shift. Referring to international models, he noted that major corporations worldwide drive innovation by combining research, technology, commercialization, and academia. “When this innovation reaches OGDCL, the silent revolution we have been discussing will become evident,” he added.

The minister reiterated the Prime Minister’s directive to eliminate unnecessary regulations that hinder business and economic activities. “We have seen individuals struggle for months, even years, to secure approvals for petrol stations and small businesses. Under the Prime Minister’s plan, only essential regulations will remain in place, while all unnecessary ones will be abolished,” he said.

Instead of selectively identifying rules for elimination, the strategy involves defining four fundamental regulations for each economic activity and removing all others. “This is how deregulation will propel economic growth,” he explained.

Dr. Malik also stated that efforts are underway to downsize the petroleum sector following the Prime Minister’s directives. A dedicated committee is evaluating government institutions, assessing workforce requirements, and determining their relevance. “The government is reviewing its institutions to ensure efficiency, prioritizing outcomes over bureaucratic structures,” he said.

Reaffirming the government’s commitment to prioritizing public welfare, he assured that all policies and programs are designed to benefit citizens rather than bureaucratic hierarchies.

Criticizing the Pakistan Tehreek-e-Insaf (PTI) for orchestrating international campaigns against Pakistan, he questioned, “Who asks the IMF not to support their own country? Who wishes for their own nation’s economic collapse? Who protests when institutional leaders visit foreign countries? When you pass resolutions abroad, they do not name a political party; they directly target Pakistan.”

He strongly denounced actions aimed at destabilizing Pakistan’s economy, cautioning against moves that could undermine the country’s financial stability and international standing.

Highlighting economic improvements, Dr. Malik stated that inflation has decreased from 40% to 3%, while interest rates have dropped from 24%, making borrowing more accessible for businesses. “Lower interest rates allow companies to invest, hire more workers, and introduce innovations. This, in turn, creates jobs for Pakistani engineers and strengthens industries,” he explained.

The minister called for a constructive national dialogue focused on economic growth rather than political confrontation.

“Pakistan’s progress must not be sacrificed for political rivalries. Reforms are underway, and the country is moving towards economic stability,but some are too preoccupied with creating disruption to recognize these positive changes,” he concluded.