By Erum Noor Muzaffar
Natural gas has long played a major role in Pakistan’s energy mix but domestic production has been declining since 2008. Instead of transitioning toward sustainable energy resources, the country increasingly turned to imported Liquefied Natural Gas (LNG) from 2015 onwards to cover the widening gap between demand and supply. This shift was heavily influenced by multilateral development banks, such as the Asian Development Bank (ADB) and the World Bank (WB) by providing technical assistance and financing for infrastructure, including regasification terminals and the associated legal and regulatory frameworks. While the original intent was to address the supply deficit, Pakistan’s dependence on imported LNG has created new structural problems.
The country now faces an oversupply of LNG contributing to severe economic imbalances particularly the rapid growth of circular debt in the power sector. What was once presented as a solution to energy shortages has instead deepened country’s financial vulnerabilities and delayed the shift toward truly sustainable, locally sourced renewable energy.
The LNG terminals supported by multilateral development banks, have contributed to the country’s dependence on expensive energy sources over the long term. However, this reliance comes at a cost – one that manifests not only in economic and financial terms but also in social and environmental impacts. The construction and operation of LNG terminals in Sindh have resulted in habitat destruction, biodiversity loss and increased methane emission, which has a global warming potential significantly higher than that of carbon dioxide. Fossil gas infrastructure development affects the local communities.
The expansion of fossil fuel infrastructure has had a lasting impact on Karachi’s coastal belt, like Ibrahim Hyderi and Rehri Goth areas that are home to centuries-old fishing communities. However, rapid industrialization, including the establishment of LNG terminals, has drastically altered the local environment. While these projects promise economic development and energy production, the fishing communities have been left to bear the environmental, social and economic costs. Deteriorating fish stocks and increased operating costs have reduced the incomes of both communities, leaving fishermen struggling to sustain their livelihoods.
“We’re forced to stop fishing and vacate the area whenever these ships arrive. These interruptions disrupt the fishermen’s routines and result in considerable financial losses,” elucidated Hameed Memon, a resident of Ibrahim Hyderi. Nazar Khaskheli from Rehri Goth shared how industrial pollution has pushed fish stocks further out to sea. “Now we have to go 4 to 5 kilometers offshore, which makes our trips costlier and less rewarding,” he said. Residents of both areas face serious health risks due to widespread air and water pollution. Contaminated water has led to a surge in waterborne diseases like diarrhea and hepatitis. Women in these areas are particularly affected by both environmental and social challenges.
“Women bear the added burden of walking long distances to collect clean water, increasing their exposure to health hazards,” noted Nazar. “Nothing is being done for the local community,” pointed out Hameed. Nazar urged the government to shift focus from fossil fuel projects to renewable energy, while Hameed called for the relocation of industries away from coastal regions to safeguard aqua life local communities and the environment.
A. Hamdani, a representative of a local NGO in Ghotki district, highlighted the grim reality: “With healthcare access severely limited – especially for women and children – the community is grappling with a worsening health crisis. Women in Ghotki are facing increasingly difficult times due to gas power plant development. Pollution and contaminated water have taken a serious toll on their health. A. Hamdani reported that hand pumps which once supplied clean water are now contaminated with industrial pollutants. “Hospital outpatient departments are crowded with women suffering from stomach and skin conditions due to the toxic environment they are exposed to every day,” observed Hamdani.
Decentralized renewable energy (DRE) projects are more promising in terms of empowering women. The MDBs’ policy and financial support should be directed toward energy projects that directly enhance women’s rights, rather than promoting climate-wrecking and women-disempowering fossil gas projects. Renewable energy investments are not only more sustainable but also provide economic opportunities for local communities, reducing Pakistan’s reliance on the imported fossil fuels and addressing the urgent need for climate action. It is essential for the MDBs to uphold their climate commitments and respond to the urgency of the planetary crisis. They must commit to ending all fossil fuel support projects and center energy systems around equity, justice and sustainability.
At COP29, held last November, Fiza Qureshi, gas campaigner at Big Shift Global, and Petra Kjell Wright, campaign manager at Recourse, urged representatives of the MDBs to adhere to the Paris Agreement. “The development banks claim to drive ‘transformative climate action,’ but when we dug into their climate finance figures from 2023, we found projects involving fossil fuels, human rights violations and environmental destruction,” noted Petra. In 2024, Pakistan took a historic step by amending its Constitution to include Article 9A, which guarantees the right to a clean and healthy environment as a fundamental human right. The UN General Assembly’s landmark 2022 resolution explicitly recognizes access to a clean, healthy and sustainable environment as a universal human right.
(The writer is a senior journalist and social commentator, can be reached at news@metro-morning.com)
