Massive Oil and Gas Reserves Discovered in Pakistan’s Waters, Experts Call It a Game-Changer
Pakistan has struck a potentially transformative discovery of oil and gas reserves in its territorial waters in the Makran and Indus Basins, Arabian Sea, with estimates suggesting it could be the world’s fourth-largest hydrocarbon deposit. Valued at USD 50–100 billion (PKR 14–28 trillion), the find, verified through a three-year survey by the Geological Survey of Pakistan (GSP) in collaboration with an allied nation (likely China), offers hope for easing Pakistan’s energy crisis and economic woes. However, experts warn that extraction could take 4–5 years and require USD 5 billion in initial investment.
| Category | Details |
|---|---|
| Location | Makran and Indus Basins, Pakistan’s territorial waters (Arabian Sea) |
| Quantity | Potentially 4th largest globally; exact size under analysis |
| Estimated Value | USD 50–100 billion (PKR 14–28 trillion at PKR 283.91/USD) |
| Source | Geological Survey of Pakistan (GSP) with allied nation (likely China) |
| Announced By | Senior security official, DawnNewsTV; Petroleum Minister Musadik Malik |
| Current Status | Exploration bidding ongoing; extraction expected in 4–5 years (2029–2030) |
Why This Discovery Matters
- Energy Relief: Pakistan imports 85% of its oil and 29% of its gas, costing USD 17.5 billion in 2023. These reserves could replace LNG and oil imports, saving billions annually and stabilizing energy prices (e.g., petrol at PKR 250/liter, June 2025).
- Economic Impact: With foreign reserves at USD 9.4 billion (June 2025), the discovery could boost reserves, reduce debt (PKR 5.2 trillion), and fund infrastructure like the Honda City 2025 (PKR 4.6–5.8 million).
- Job Creation: Exploration and extraction could create thousands of jobs, especially in coastal areas like Gwadar, amid a 45% poverty rate.
How the Reserves Were Found
A three-year survey (2022–2024), conducted with advanced seismic imaging and exploratory drilling, pinpointed the deposits. Key players include the Oil & Gas Development Company (OGDCL), Pakistan Petroleum Limited (PPL), and Mari Petroleum, backed by the Special Investment Facilitation Council (SIFC). The survey suggests reserves rival those of Venezuela (3.4 billion barrels) and Saudi Arabia, though exact quantities await confirmation.
Challenges Ahead
- High Costs: Exploration requires USD 5 billion, with further investments for pipelines and refineries. Extraction may take until 2029–2030.
- Security Risks: Offshore blocks face piracy and regional tensions, deterring Western firms like ExxonMobil, which exited Pakistan in 2023. China, via the Belt & Road Initiative, is the likely partner, with Turkey also signing a joint exploration deal in April 2025.
- Illegal Activity: Smuggling of fuel from Iran (USD 1 billion/year) could complicate legal extraction efforts.
What It Means for Pakistanis
- Consumers: If successful, cheaper fuel and gas could lower living costs, easing inflation (29% in 2023). For context, a full tank for a Honda City (40 liters) costs PKR 10,000 today.
- Investors: Energy stocks like OGDCL and Mari Petroleum may surge (e.g., Mari’s shares up 1.93% to PKR 3,510 in Sept 2024). Monitor bidding updates in July 2025.
- Locals: Coastal communities could see job growth, but environmental risks like oil spills need strict regulation.
Final Word
Pakistan’s massive oil and gas discovery in the Arabian Sea could transform its economy, slashing import bills and boosting energy security. With China and Turkey as likely partners, the July 2025 bidding round is critical.
Disclaimer: Data based on June 28, 2025, from GSP, DawnNewsTV, and industry reports. Verify details a sbp.org.pk for accuracy, as exploration plans may evolve.
