Energy and economic growth: A case study of Pakistan

Abstract The paper investigates the relationship between energy consumption and economic growth with special reference to Pakistan. It then establishes future energy needs of the country and presents a long-run energy plan to meet these requirements. The energy-economy relationship is explained. The analysis shows that energy shortages can be extremely harmful for a developing country like Pakistan. However, the energy problem is one of shortages of capital and foreign exchange which can be dealt with by prudent planning of remittances from the Middle East.