THE initial months of the current fiscal year have witnessed a notable surge in remittances compared to the previous year. Despite this positive inflow, Pakistan’s Current Account Def-icit (CAD) has alarmingly surpassed last year’s figures. This paradox underscores a funda-mental economic challenge: while exports have grown, imports have surged at a faster pace, resulting in a widening trade deficit that threatens macroeconomic stability. Pakistan already imposes stringent restrictions and heavy duties on imported goods. Vehicle import duties can sometimes triple the factory price, gold imports are virtually banned and other luxury items carry heavy taxes. Yet, these measures have failed to significantly reduce the import bill, indicating that the problem is structural, demanding a deeper understanding of the forces driving imports and a strategic shift toward indigenous alternatives.

The import colossus: fuel burden: The largest component of Pakistan’s import bill is not luxury cars or gold but essential fuels—petrol, coal and natural gas—which alone constitute nearly 25% of total imports. Fuel demand is highly inelastic; curbing it abruptly could halt economic activity. However, Pakis-tan has viable local energy resources capable of meeting domestic and industrial needs. Two of the most promising alternatives are biogas and fuel pellets. Biogas: sustainable energy from livestock: Biogas technology is well-established in Pakistan. It involves feeding........

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