Energy crisis behind Pakistan’s offer for conditional talks with India
NEW DELHI: Pakistan’s offer of conditional talks and its statement that it will not be the first to launch a war against India may have been prompted by not only the precarious state of its economy but also its current oil reserves which have touched a new low.
Healthy oil reserves are necessary to fight a war, but Pakistan’s energy sector is facing demand-supply imbalance owing to a host of factors, according to people aware of the matter. They said political mismanagement, crisis in the Gulf, weak currency at home and inadequate foreign exchange reserves have contributed to Pakistan’s woes.
Pakistan’s energy sector is grappling with supply and stocks below the planned level, and the country’s oil companies have suffered heavy financial losses because of insufficient foreign exchange available in the country, said one of the persons, who spoke on condition of anonymity.
