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Lower international oil prices may help reduce transportation costs, electricity generation costs, and inflation

Lower international oil prices may help reduce transportation costs, electricity generation costs, and inflation

Interview with Mr. Khalid Jamil Ansari, a renowned consultant

PAGE: Tell me something about yourself, please:

Khalid Jamil Ansari: I am a professional with more than 35 years of diversified experience in banking, education, human resources, training, marketing, institutional management, solar energy, and Health, Safety & Environment (HSE). Throughout my career, I have worked with leading organizations and educational institutions, contributing to leadership development, capacity building, business growth, operational excellence, and professional training. I strongly believe in continuous learning, teamwork, innovation, and knowledge sharing. I have actively promoted collaboration between academia and industry, supported sustainable development initiatives, and contributed to awareness and capacity building in renewable energy, workplace safety, and environmental stewardship.

My objective is to leverage my experience and expertise to contribute towards the economic, educational, environmental, and social development of Pakistan while supporting organizations in achieving sustainable growth and excellence.

PAGE: What is your perspective about oil prices (petroleum prices) in Pakistan after the peace agreement between Iran and the USA?

Khalid Jamil Ansari: The relationship between Iran and the USA plays an important role in the global oil market. If peace and stability improve between these countries, global oil supplies may increase and international oil prices may become more stable. For Pakistan, this could be positive because we import a large portion of our petroleum products. Lower international oil prices may help reduce transportation costs, electricity generation costs, and inflation. However, petroleum prices in Pakistan are also influenced by factors such as the exchange rate of the Pakistani Rupee, government taxes and levies, and global market trends. Therefore, while a peace agreement may create a positive environment for lower oil prices, the actual benefit to Pakistani consumers will depend on how the government manages economic and energy policies.

PAGE: How would you comment on the energy policy of Pakistan?

Khalid Jamil Ansari: Pakistan’s energy policy has improved over the years, especially with investments in power generation projects, LNG imports, hydropower, solar energy, and wind energy. Today, Pakistan has significantly improved electricity availability compared to a decade ago. However, several challenges still exist. These include high electricity tariffs, circular debt, transmission losses, electricity theft, and dependence on imported fuel. These issues increase the cost of energy for consumers and industries. In my opinion, Pakistan’s future energy policy should focus on three key areas:

1. Increasing renewable energy sources such as solar and wind power.

2. Reducing dependence on imported oil and gas.

3. Improving efficiency in electricity distribution and bill collection.

A balanced and sustainable energy policy is essential for economic growth, industrial development, and public welfare.

PAGE: Where do you see Pakistan in terms of using alternative energy resources?

Khalid Jamil Ansari: Pakistan has enormous potential in alternative and renewable energy resources. The country receives abundant sunlight throughout the year, especially in Sindh, Balochistan, and South Punjab. Similarly, coastal areas of Sindh offer excellent opportunities for wind energy projects. In addition, Pakistan has considerable hydropower potential through its rivers and water resources. Agricultural waste can also be utilized for biomass energy production. I believe Pakistan is moving in the right direction, particularly with the increasing installation of solar panels by households, businesses, and industries. However, more investment, government incentives, and public awareness are required. Over the next 10 to 15 years, renewable energy can become a major contributor to Pakistan’s energy mix, helping reduce electricity costs, improve energy security, and protect the environment.

PAGE: What is your standpoint regarding energy prices in Pakistan for industrial consumers after the presentation of the Federal Budget for the next fiscal?

Khalid Jamil Ansari: Energy prices are one of the most important factors affecting industrial growth and competitiveness in Pakistan. Industries require affordable and reliable electricity and gas to produce goods efficiently and compete in international markets. Following the Federal Budget, industrial consumers expect measures that can reduce energy costs and encourage investment. If electricity and gas tariffs remain high, production costs will increase, making Pakistani products less competitive globally. The government should focus on reducing system losses, controlling circular debt, increasing renewable energy generation, and improving operational efficiency in the energy sector. These measures can help stabilize energy prices over the long term.

A competitive energy pricing structure will support industrial expansion, increase exports, create employment opportunities, attract foreign investment, and strengthen Pakistan’s economy.

Pakistan’s economic future is closely linked with energy security and affordability. The country has significant opportunities to benefit from renewable energy, regional stability, and energy sector reforms. With prudent policies and effective implementation, Pakistan can achieve sustainable economic growth, lower energy costs, greater industrial competitiveness, and a cleaner environment for future generations.

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