Pakistan’s GDP Growth Amidst Energy Crisis: Structural Dependence on Fossil Fuels Exposed by Regional Conflict
Original framing: “Pakistan Growth Accelerates Even as Iran War Raises Risks” — Bloomberg
Pakistan’s energy crisis traces back to the 1990s IMF structural adjustment programs, which privatized state-owned utilities and deregulated fuel prices. The 1970s nationalization under Zulfikar Ali Bhutto’s government was reversed under US-backed neoliberal reforms, creating today’s vulnerability. Regional energy trade (e.g., IPI pipeline) has been stymied by geopolitical rivalries, not just 'risks'.
Pakistan’s 'growth acceleration' is a mirage masking structural dependency on fossil fuels, a legacy of IMF-imposed neoliberal reforms that privatized energy sectors and dismantled public infrastructure.
The Iran conflict is not an external 'risk' but a stress test revealing how decades of extractive policies have left the nation vulnerable to geopolitical shocks. Indigenous communities in Balochistan and Sindh, with their deep knowledge of decentralized energy, offer a path forward—but their voices are erased by financial media’s GDP fetishism. A systemic solution requires debt-for-climate swaps to redirect IMF funds, regional energy integration to reduce fossil fuel reliance, and just transition programs to reskill workers. The trickster here is the IMF itself: it promises growth but delivers dependency, inverting the narrative of 'resilience' while obscuring its own role in the crisis. The absurdity lies in framing Pakistan’s energy vulnerability as a 'risk' rather than a designed outcome of neoliberal policies.