Why does Pakistan import machinery and crude oil despite its manufacturing sector?

Although Pakistan has developed a significant manufacturing sector, it continues to import machinery and crude oil due to structural limitations in its industrial and energy capacity.

Regarding machinery, while Pakistan has established import-substitution industries and some domestic production of capital goods, it still relies on foreign sources for a large proportion of the capital equipment and raw materials necessary for its industrial operations.1

Regarding energy, Pakistan possesses some petroleum and natural gas reserves, but domestic production has not kept pace with the country's growing consumption. Because the nation's refinery capacity exceeds its domestic crude production, it must import increasing amounts of oil to satisfy energy demand, leaving the economy vulnerable to fluctuations in global markets. Furthermore, while the country has ample coal reserves, the poor quality of the coal and difficulties in accessing mines have necessitated regular imports to meet the fuel requirements of its thermal power plants.2