ISLAMABAD: Pakistan is opening new areas for oil and gas exploration through competitive bidding, which will push massive exploration activities in the country, Federal Minister for Energy Muhammad Hammad Azhar said on Monday.

“Pakistan has significant oil and gas reserves and opening of new blocks will not only increase local production but will also help save a lot of foreign exchange now used for its imports,” the minister said during a meeting with the Ambassador of Japan to Pakistan Kuninori Matsuda.

The Japanese envoy appreciated Pakistan government’s policies in the energy sector and extended an invitation to the minister for the Asia Green Partnership Ministerial Meeting (AGPM) to be held in October in Japan.

Japan has announced the Asia Energy Transition Initiative (AETI) which encompasses $10 billion financial support for renewable energy, energy efficiency, LNG and other projects, Mr Matsuda informed the energy minister.

The financial aid is targeted at decarbonisation projects in Asia, such as renewable energy, energy-saving and conversion to gas-fired power generation from coal-fired power to help with an energy transition.

Mr Azhar accepted the invitation to participate in the AGPM and said that international companies including Japanese companies must participate in the competitive bidding of oil and gas exploration blocks.

The minister also apprised the Japanese ambassador on the effective steps taken by the present government for substantially minimising the growth of circular debt from Rs538bn last year to Rs177 billion this year, which has greatly contributed in restoring the confidence of investors.

Published in Dawn, July 6th, 2021