Statistical and Econometric Estimation of Current and Projected Energy Utilization in Pakistan
Energy management is a vital element for sustainable development which defines the economic growth of a country. The world energy demand is growing rapidly due to the increasing population and industrial development. Energy consumption in Pakistan primarily depends upon the conventional fuels which have adverse effects on economy due to its high import rate and strong relation with Gross Domestic Product (GDP) and Gross National Product (GNP). This paper aims to elucidate the relationship between economic growth and energy consumption of Pakistan. In order to maintain the required level of economic growth rate, home extracted non-conventional fuels should be considered rather than the imports of oils with proper energy managing policies. Pakistan suffers 2 – 3% GDP loss annually due to the mismanagement of energy resource. In this research, Long-Range Energy Alternative planning system (LEAP) modeling tool has been adopted using various scenarios to evaluate energy demand till year 2045. This research also postulates and uncovers the innovative horizons for the energy planners and policymakers to accomplish the prevalent energy demands in coming years. Some recommendations are also put forward along with need of future research.