Domestic energy sources mitigate LNG supply risk, says Leghari

Energy Minister says 74% of country’s electricity now comes from local sources, with target to exceed 96% by 2034

Pakistan’s Federal Minister for Energy Awais Ahmad Khan Leghari speaks during an interview with Reuters in Islamabad, Pakistan March 12, 2026 PHOTO: REUTERS

Pakistan’s growing dependence on domestic energy, including solar and wind, nuclear reactors, coal and hydropower, has reduced its vulnerability to disruptions in global LNG supplies, Energy Minister Awais ‌Leghari said. Reuters.

The war in the Middle East threatens shipments from Qatar, the world’s second-largest producer after the United States, which supplies most of the LNG imported from Pakistan, used to fuel power plants during peak electricity demand.

“Pakistan is steadily increasing its dependence on local energy resources, and around 74% of our electricity generation now comes from local sources,” Leghari said, adding that the government aims to raise this figure above 96% by 2034.

The figures have not been previously reported. “The people-led solar revolution and previous decisions to invest in nuclear, hydropower and local coal have all played a role in increasing Pakistan’s self-reliance,” he added.

Pakistan has long struggled with electricity shortages and historically faces hours of daily load shedding during peak summer demand.

The country now has excess generation capacity after the addition of coal, LNG and nuclear plants, while demand growth has slowed and the use of rooftop solar has increased, sometimes outpacing grid demand in some hubs.

Outages still occur in some parts of the country due to theft, lost lines and financial constraints, rather than a lack of electricity.

“Worst case scenario”

Qatar halted its LNG production earlier this month and Asian countries, which buy 80% of its production, are scrambling to cope with the shortage.

LNG now accounts for about 10% of Pakistan’s electricity generation, mainly used to meet evening peaks in demand and stabilize the grid, Leghari said.

Column chart showing a decline in LNG-fired power generation in Pakistan between fiscal years 2020-21 and 2024-25. Source: Pakistan Ministry of Energy estimates. PHOTO: REUTERS

During the global energy crisis triggered by Russia’s invasion of Ukraine in 2022, the country was forced to cut power for extended periods after failing to secure LNG cargoes on the spot market.

“Even if LNG were discontinued or became too expensive, the impact on production capacity, industry or agriculture would be “minimal,” Leghari said.

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But he added that prolonged disruptions could still lead to additional shortages in summer, when demand increases due to the use of air conditioners. “In a worst-case scenario, if LNG cargoes stopped for several months, Pakistan could experience one to two hours of load shedding during peak summer evenings,” Leghari said.

Such outages would likely affect some urban and rural areas, not industry or agriculture, he said, adding that Pakistan is developing battery storage to shift excess daytime solar power to evening peaks.

The government has canceled 21 LNG cargoes planned for 2026-27 under a long-term deal with Italy’s Eni, as growth in domestic energy and solar reduces demand for gas.

Local and green

“Pakistan should not invest in an energy source that could put it at risk in terms of energy security,” Leghari said, asserting that the government’s plans for the next six to eight years are to focus on local clean energy.

About 55% of electricity generation now comes from clean sources, which the government aims to increase above 90% by 2034, Leghari said.

Learn more: Prioritize domestic energy supply

Hydropower produces about 40 terawatt hours of electricity per year, while nuclear generates about 22 TWh and domestic coal about 12 TWh, according to the minister, representing a significant share of Pakistan’s electricity supply without relying on imported fuels.

Rooftop solar installations have reached over 20 GW across Pakistan, with off-meter capacity estimated at between 12 and 14 GW and possibly up to 18 GW, significantly reducing daytime demand on the grid, he said.

Hydroelectric generation also increases in summer as river flows increase, adding up to 7,000 megawatts of capacity and helping meet growing demand for electricity from air conditioning.

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