AN OVERVIEW OF BIOFUELS SECTOR OF PAKISTAN: STATUS AND POLICIES

The biofuels are important segment of the renewable energy sector and can serve to save foreign exchange and improve environment. At present, Pakistan is producing ethanol from molasses and has the potential to further increase its production from sugarcane crop. The current government policies require blending of biodiesel with petroleum diesel so as to achieve a minimum share of 5% by volume of the total Diesel consumption in the country by the year 2015 and 10% by 2025. Given the status quo, ethanol seems more promising as alternative fuel rather than biodiesel. Also, the government needs to take more serious steps to ensure the blending of ethanol with gasoline as vehicle fuel in the country.