Pakistan, once self-reliant in natural gas, now faces dwindling reserves and economic challenges. This study examines the gas sector’s decline, highlighting mismanaged subsidies, inefficient distribution, and outdated policies favoring household consumption over industrial needs. The study shows that valuable gas is wasted in low-economic-value sectors while industry and fertilizer sectors struggle. By prioritizing home electrification, revising tariffs, and improving energy efficiency, Pakistan can redirect gas to sectors that drive growth, reduce imports, and create jobs, leading to a more sustainable future.

Residential, commercial, and industrial sectors in Pakistan rely heavily on natural gas as a fuel source. With the growing population and industrial expansion, the demand for natural gas is expected to rise to 5,710 MMCFD by 2032. However, Pakistan's natural gas reserves are depleting rapidly, and their contribution to the country's gas supply is decreasing each year. To address this issue, various solutions have been proposed. Importing LNG (liquefied natural gas) has been considered, but it may not be a viable long-term option due to the lack of necessary storage facilities, high infrastructure costs, and national climate goals. Additionally, importing LNG would increase the trade deficit and place a significant burden on the national budget. Another option is to import natural gas from neighbouring countries like Iran, but international trade agreements also rule this option out. Shifting residential natural gas load to electricity can provide an effective solution to the respective challenge. In the proposed Project, the aim is to explore the potential, the cost-effectiveness, and the feasibility of partial shifting of residential natural gas load to electricity at the national and consumer levels.