Energy policy formulation for Pakistan: An optimization approach

Pakistan is a low income, low energy consumption country. In view of the close interdependence between economic growth and energy consumption, she will need increasing energy supplies in order to maintain her economic growth. This paper develops an energy sector optimization model for the Pakistan economy, which consists of production models for five energy industries, ie oil, gas, coal, electricity and non-commercial fuels. The model is first used to forecast energy balances for the period 1975–2006. The model is then employed to formulate a long-term comprehensive energy policy for Pakistan. Finally the suggested policy is compared with the current official energy programme.