ABSTRACT

Energy is the crucial driver of economic growth, technological advancement, and overall human development, underscoring its indispensable role in modern society. The development of a comprehensive Energy Input-Output table is crucial for understanding the complex interrelationships between economic activities and energy consumption. This research aims to examine Pakistan’s energy ecosystem, emphasizing the sectorial relationships among energy production, consumption, and distribution across various sectors. This Research seeks to uncover the specific contributions of sectors within the country to overall use. The objectives of this study are, to develop an updated energy input-output table that comprehensively captures the interrelationships among various sectors in Pakistan’s economy and to analyze the energy flows and interdependencies across various sectors of the economy. The research utilizes Leontief input output model, based on data from the year 2021. The oil industry demonstrates extensive internal consumption totaling $ 3360.7 million and significant external dependencies, receiving inputs primarily from electricity ($ 713.9 million), gas ($18.2 million), and LPG ($ 97.4 million). The electricity sector act as Central hub, consuming input from oil ($ 1014.8 million), gas ($ 680.6 million), LNG ($ 424.5 million), and coal ($ 256.2 million). Industries such as food (0.713), textile (0.678), and oil 0.551 exhibit high backward linkages, while oil (0.981), wood (0.809), and coal (0.800) show significant forward linkages. Sectors like chemical (1.879), electricity (1.835), and construction (1.812) have substantial output multipliers underscoring their critical roles in economy.