LONDON, Sept 24: Pakistan is close to launching an ambitious plan to reduce its oil consumption amid warnings that economic growth may slow this year because of high energy prices, a British newspaper reported here.

“We are looking to improve our efficiencies as soon as possible while also switching over to alternative fuels such as gas,” Dr Salman Shah, prime minister’s adviser on finance and economic affairs, said in an interview with the Financial Times.

According to petroleum ministry officials in Islamabad, one element of the plan is to expedite imports of liquefied natural gas from Qatar. Another is to ensure a planned new gas pipeline from Iran to Pakistan and onwards to India goes ahead, with a formal agreement signed by end of this year. Dr Shah said he did not expect to see escalating pressure on the balance of payments as a result of high oil prices. “Our reserves are holding stable and our economy otherwise is looking promising,” he said.

“If [international oil prices] remain at current levels, or go higher, projections for imports, the fiscal deficit and inflation may have to be revised upward, while any negative impact on the global economy could lead to lower growth of exports,” the ADB said.

Some analysts say Pakistan could position itself as a destination for oil-rich Arab investors following the privatization in June last of PTCL.—PPI