electricity crisis pakistan essay

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Pakistan’s Power Crisis: A Perfect Storm of Policy Failures

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Pakistan’s soaring electricity prices are the culmination of three decades of ill-conceived policies, corruption, and a lack of long-term planning.

Pakistan’s power sector is mired in a complex web of challenges, characterized by chronic underinvestment, inefficient power generation, and a dysfunctional distribution network. The sector’s history is marked by ill-conceived policies, corruption, and a lack of long-term planning. These factors have culminated in a crisis that has far-reaching implications for the economy, society, and environment.

The government’s attempts to address the crisis through a mix of policies, including increased power generation and subsidy-driven solar adoption, have yielded mixed results. While these measures have provided some relief, they have also exacerbated underlying issues such as circular debt and inefficiencies. The burden of these challenges has disproportionately fallen on consumers, with rising electricity costs eroding purchasing power and fueling social discontent.

Forecasts for GDP growth in Pakistan suggest only modest increases over the next few years. This implies that the anticipated rise in electricity demand will be gradual, rather than dramatic. 

The average cost of electricity in Pakistan stands at $0.23 per unit, a rate that has prompted many consumers, including industries and farmers, to shift toward solar energy . A significant number of farmers have adopted off-grid solar systems to power their water pumps, reducing their reliance on the national grid. This shift underscores the impact of high electricity rates on consumer behavior, as many seek more cost-effective and reliable alternatives.

Since 2021, electricity prices have surged by an astonishing 155 percent . This increase is largely attributed to the government’s strategy to raise industrial and retail electricity rates as part of securing loans from the International Monetary Fund (IMF). The IMF’s condition s included substantial tariff hikes and other economic reforms. With inflation hovering around 12 percent, the rising costs of electricity, fuel, and essential goods have placed additional strain on the purchasing power of the populace. In July, the government further increased residential electricity prices by 18 percent to meet IMF conditions, which also involved raising taxes and the costs of basic commodities.

A recent Bloomberg report revealed that electricity bills in Pakistan now surpass the cost of household rent for some Pakistanis. The financial strain on consumers is exacerbated by the loss of approximately 16 percent of electricity due to theft and transmission inefficiencies. These losses contribute to the circular debt crisis, a longstanding issue in the energy sector that continues to burden both consumers and the government.

The origins of Pakistan’s power sector crisis can be traced back to 1994, when the country, then with a population of 130 million (today, it’s approximately 250 million), sought to attract foreign investment to establish new power plants. This initiative was intended to address severe load-shedding, which was significantly impacting industrial productivity. 

The government at the time aimed to reduce public sector involvement in the economy through a policy known as “de-publicizing the economy.” This strategy involved transferring economic responsibilities from the public to the private sector, with the goal of stimulating private investment, improving efficiency, and creating jobs. In the electricity sector, this culminated in the introduction of Independent Power Producers (IPPs).

Before the introduction of the IPP policy in 1994, electricity production in Pakistan was managed entirely by public sector power plants. Many of these plants were outdated, inefficient, and prone to frequent breakdowns, leading to high fuel consumption and unreliable electricity supply. The policy shift toward private sector involvement was intended to address these issues by encouraging investment in new, more efficient power plants and reducing the burden on the public sector.

Political instability, coupled with sluggish economic growth, hampered investment in critical transmission infrastructure. Moreover, the escalating cost of imported fuels for fossil fuel-based power plants exacerbated the issue, leading to underutilized power plant capacity and increased costs for consumers. 

Consumers were compelled to subsidize idle power plants through capacity charges, despite not receiving the equivalent electricity. This anomalous situation underscores the systemic inefficiencies rooted in outdated contracts and mismanagement, placing an undue financial burden on consumers.

The burgeoning adoption of solar energy, while commendable, presents a new challenge to the power sector. As more consumers opt for solar power, the demand for grid-supplied electricity decreases, while the fixed costs associated with power generation and infrastructure remain relatively constant. This imbalance can lead to increased tariffs for remaining grid-connected consumers as the costs are spread over a smaller user base.

Pakistan’s power crisis is a complex issue with far-reaching consequences. Beyond economic implications like industrial decline, unemployment, and inflation, it has profound social impacts, including increased poverty and social unrest. Despite these pressing challenges, the government is making efforts to address energy demands and reduce greenhouse gas emissions. 

On August 16, Nawaz Sharif, presiding of the ruling Pakistan Muslim League-Nawaz (PMLN), announced a notable reduction in electricity costs for residents of Punjab. Specifically, a $0.05 per unit decrease was introduced for households consuming up to 200 units (equating to a 22 percent discount, based on the average per unit price for electricity). 

Additionally, a substantial $2.5 billion package was unveiled, aimed at providing free solar panels to eligible families in the province. This initiative reflects the government’s effort to mitigate the financial burden on consumers while promoting the use of renewable energy sources.

According to Pakistan’s Economic Survey 2023-24 , significant investments are being made in renewable energy to meet the goal of a 50 percent reduction in emissions by 2030. As of March 2024, Pakistan’s installed electricity capacity was 42,131 MW, with contributions from hydropower (25.4 percent), nuclear (8.4 percent), renewable (6.8 percent), and thermal (59.4 percent) sources. 

Although thermal power remains the largest source of electricity, its share has decreased, reflecting a positive trend toward cleaner energy sources. According to Pakistani government data , hydropower, nuclear, and renewable sources accounted for 54.1 percent of the total electricity actually generated in the fiscal year ending in March 2024, indicating progress in transitioning to more sustainable energy.

The government’s commitment to renewable energy is evident in its target of a 50 percent emissions reduction by 2030, as outlined in the Economic Survey 2023-24. However, significant investments and policy reforms are still required to fully harness the potential of clean energy and address the persistent issues plaguing the power sector

The power crisis in Pakistan has intensified broader societal and political issues, creating a persistent cycle of instability. Addressing this crisis requires a multifaceted strategy that tackles both supply and demand challenges. While the emphasis on increasing renewable energy is a positive development, achieving a sustainable energy future necessitates a comprehensive approach.

To effectively address these challenges and foster economic growth, Pakistan must adopt a holistic strategy that integrates energy efficiency, grid enhancements, and a strong renewable energy sector. Additionally, resolving circular debt issues and strengthening governance within the power sector are crucial. 

A stable and efficient energy sector is essential for sustainability and for stimulating GDP growth, which, in turn, ensures the nation’s capacity to afford and manage higher electricity costs. High GDP growth will provide the financial means to meet the challenges posed by capacity charges and support the overall stability of the energy sector.

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What’s at Stake in Pakistan’s Power Crisis

By Noah Berman

February 6, 2023 3:00 pm (EST)

Worsening blackouts are the latest manifestation of Pakistan’s economic distress. A brewing debt crisis could plunge the country into financial chaos.

A wave of darkness engulfed Pakistan on January 24 as its aging power grid strained to meet the country's demand for electricity. The massive outage was the latest in a series of blackouts that have become a chronic symptom of Pakistan’s ailing and climate-vulnerable economy, under duress from devastating natural disasters, a colossal debt load, and the mounting risk of sovereign default. With Islamabad rushing to negotiate a bailout from the International Monetary Fund (IMF), experts fear the response will not be enough to avoid a crisis.

What caused the January power outages?

Local officials blamed a surge in voltage at a power station in Sindh Province that cascaded throughout the country, bringing down the grid and leaving more than two hundred million people without power for nearly a day. 

Such blackouts are becoming increasingly common. Analysts say the electricity grid, established prior to Pakistan’s 1947 independence and largely constructed in the 1960s, is suffering from a dangerous lack of maintenance and investment. Pakistan is also running low on the imported fossil fuels that power the grid, with prices skyrocketing since the Russian invasion of Ukraine began.

Energy and Climate Security

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“Given how rickety and dilapidated the electricity grid is, and the associated infrastructure, it doesn’t take all that much to deliver a catastrophic shock to the system,” says Michael Kugelman, a South Asia expert at the Wilson Center.

What’s at stake if the power outages continue?

Pakistan’s electricity woes have added to the country’s precarious financial dilemma, with the blackout inflicting an estimated $70 million loss to the country’s textile industry, its largest export sector by a wide margin. Meanwhile, Islamabad’s total national debt had soared to over $200 billion [PDF] by late 2022, amounting to roughly 90 percent of its gross domestic product (GDP), according to state bank statistics. A series of compounding factors have shaken Pakistan’s economy: double-digit inflation has made everyday goods such as food and fuel more expensive, and interest rate hikes by the U.S. Federal Reserve and other central banks have resulted in rapid devaluation of Pakistan’s currency, the rupee. Meanwhile, an estimated $40 billion in damage caused by last year’s catastrophic flooding , a budget deficit worsened by large government subsidies, and an unforgiving debt load have brought the country to the precipice of default. 

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Last week’s blackout aggravated this economic adversity. Extended power outages could also affect Pakistan’s agriculture industry and force the country to import more food, a troubling prospect given that the prices of staples such as grain and vegetable oil have soared in the past year. Though Pakistan has been a net importer of food for much of the past three decades , its reliance on food imports surged last summer, when floods destroyed millions of hectares of farmland.

“If these power outages and these broader electricity problems continue over time, you’re going to see major deleterious implications for the economy, both right away and further down the road,” Kugelman says.

What do Pakistan’s struggles mean for other countries?

An economic crisis in Pakistan could have implications for Islamabad’s close relationships with Washington and Beijing. Meanwhile, its growing climate disruptions could ring alarm bells for other vulnerable countries. 

Beijing has invested over $60 billion in the country via its Belt and Road Initiative (BRI), through both debt and equity financing; Pakistan has borrowed $30 billion from Chinese lenders. While China has already reduced its lending to Pakistan, analysts say a sustained crisis could make Beijing wary of investing more money in the country. And default in another BRI country—Sri Lanka and Ghana both defaulted in 2022—could resurface other lenders’ concerns about China’s notorious reluctance to take losses on its loans. Pakistan borrowed more from China than Sri Lanka or Ghana did, so another round of contentious debt negotiations could raise questions about Beijing’s leverage over countries that owe it money. A default could also give pause to other countries considering Chinese investment. 

“Chinese state banks have been acting like most commercial creditors—they seem determined to get their money back with interest as quickly as possible,” says CFR’s Brad Setser.

The United States has sought to bolster Pakistan as a stable partner in a region stricken by terrorism and violence, providing tens of billions of dollars in military aid and other assistance over the past two decades. With Pakistan and other climate-vulnerable countries suffering increasingly severe economic consequences from climate change, many experts say what’s needed now is aid tied to climate adaptation. However, some of them argue that the $200 million Washington has provided to Islamabad since summer 2022 barely registers in terms of Pakistan’s need. That paucity of aid could portend lackluster financial support from wealthy nations for climate adaptation policies in other low-income and climate-vulnerable countries.

Will an IMF bailout stave off an economic crisis?

Pakistan hopes to forestall default by unlocking a paused $1.1 billion disbursement from the International Monetary Fund, the world’s controversial financial firefighter . Islamabad has implemented a series of reforms aimed at complying with the lender’s conditions, including hiking fuel prices and instituting a market-based exchange rate for the rupee. The funding is part of a $7 billion bailout that Pakistan and the IMF agreed to in 2019, their fifth such deal in the past two decades.

What would be coming from the IMF would be a drop in the bucket.

IMF conditions have often proved unpopular in Pakistan, and Prime Minister Imran Khan imposed subsidies that derailed the country’s IMF program before he was ousted from office last year. With the rupee falling to an all time low, imports, especially fuel, have become much more expensive, and officials worry about how the country’s forty-six million poor people will survive the spike in prices.

But even Khan has now said the country has “no choice” but to negotiate with the IMF. To stay afloat, Pakistan has drained its foreign reserves: as of early February, the country’s remaining $3.7 billion in central bank reserves were enough for only three weeks of imports. Meanwhile, double-digit inflation has made looming debt payments increasingly out of reach.

Even so, some analysts say that the proposed bailout would be little more than a band-aid solution given the country’s massive debt burden and debilitating underinvestment in electricity and other infrastructure.

“If you’re looking at the scale of the financial needs within the electricity sector, and the broader energy sector, what would be coming from the IMF would be a drop in the bucket in terms of what’s needed more broadly,” Kugelman says.

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Energy Crisis in Pakistan; Causes, Impacts and Remedies

• Current Affairs , Essays, Outlines
• May 31, 2023
• Noshin Bashir

Table of Contents

Introduction

Pakistan is a developing country in South Asia with a population of over 200 million people. Despite having abundant natural resources, including coal, natural gas, and hydropower potential, the country has been facing an energy crisis since 2007. The energy crisis in Pakistan is a complex and multi-dimensional issue that has had severe economic, social, and political consequences for the country. It has caused a significant economic and social impact on the country. The energy crisis is caused by a variety of factors, including an inadequate energy supply, an inefficient energy sector, and a lack of investment in the sector.

Root Causes of Energy Crises in Pakistan

The root causes of the energy crisis in Pakistan are numerous, including poor governance, inadequate investment in the energy sector, and a lack of foresight in energy planning. Pakistan’s energy sector is highly dependent on imported oil and gas, and the country has been struggling to meet its energy demand, which has been growing at a rate of around 7% per annum.

One of the primary reasons for the energy crisis in Pakistan is the circular debt issue. Circular debt refers to the outstanding payments between the government, power generation companies, and distribution companies. The circular debt has been increasing over the years, and it has resulted in power generation companies being unable to pay for the fuel required to produce electricity. As a result, they have been forced to reduce their output, resulting in widespread power outages across the country.

Another significant contributor to the energy crisis in Pakistan is the country’s inadequate investment in the energy sector. The lack of investment in the power generation and transmission infrastructure has resulted in frequent power outages and load shedding. The country’s aging power plants are also a significant contributor to the energy crisis. The majority of the power plants in Pakistan are more than 30 years old, and they have been operating inefficiently, resulting in low power generation and high fuel consumption.

Pakistan’s reliance on imported oil and gas is another significant reason for the energy crisis. The country has been importing approximately 80% of its oil and gas requirements, which has resulted in high energy costs. The rising oil prices have put a considerable strain on the country’s economy and have contributed to inflation.

Impacts of Energy Crises

The energy crisis in Pakistan has had severe economic, social, and political consequences. The power outages and load shedding have resulted in a loss of productivity and have had a detrimental effect on the country’s economy. The frequent power outages have also had a negative impact on the healthcare and education sectors, as hospitals and schools have been unable to function without electricity. The cost of electricity has increased significantly, leading to an increase in the cost of living. In addition, the energy crisis has caused a decrease in industrial production, leading to a decrease in employment and a decrease in economic growth.

The energy crisis has also had a significant social impact on the country. The lack of electricity has caused a decrease in the quality of life, as people are unable to access basic services such as healthcare, education, and transportation. In addition, the energy crisis has caused an increase in crime and social unrest, as people are unable to access basic services.

How to Address Energy Crises

To address the energy crisis in Pakistan, the government must take steps to increase investment in the energy sector. This includes investing in infrastructure, modernizing existing infrastructure, and investing in renewable energy sources. In addition, the government must take steps to improve the efficiency of the energy sector, such as introducing energy efficiency measures and improving the regulation of the energy sector. Finally, the government must take steps to reduce energy costs, such as introducing subsidies and incentives for energy efficiency.

The Pakistani government also needs to address the circular debt issue and take steps to improve the investment climate in the energy sector. The country needs to invest in modern power generation technologies and focus on developing renewable energy sources such as solar, wind, and hydropower.

The energy crisis in Pakistan is a complex and multi-dimensional issue that requires urgent attention. It is a major issue that has had a significant economic and social impact on the country. The government must take steps to address the energy crisis, such as increasing investment in the energy sector, improving the efficiency of the energy sector, and reducing energy costs. These steps will help to reduce the impact of the energy crisis on the country and ensure that the country is able to meet its energy needs.

Read Also: The Balochistan Crisis: Origins, Impacts, and Remedies

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Energy Crisis in Pakistan Essay: A Looming Challenge

• October 18, 2023

Energy plays a fundamental role in any nation’s progress, and Pakistan is no exception. In recent decades, Pakistan has been grappling with a severe energy crisis that has had far-reaching consequences on its economy, society, and environment. This essay delves into the intricacies of the energy crisis in Pakistan, its root causes, and the profound impact it has on the nation. Moreover, it outlines potential solutions, examines case studies from around the world, and sheds light on the challenges that impede progress. By the end, we aim to provide a comprehensive understanding of the energy crisis in Pakistan and the steps needed to address it.

Causes of the Energy Crisis

Impact on the economy, society, and environment, the role of different energy sources, government policies and initiatives, effects on industries and manufacturing, impact on household and agriculture, unemployment and economic instability, energy affordability and access for the poor, air pollution and greenhouse gas emissions, water usage and contamination, ecological impact of energy projects, potential for renewable energy development, researched and statical data, improving energy efficiency and conservation, diversifying the energy mix, enhancing the energy infrastructure, reducing transmission and distribution losses, encouraging private sector involvement, promoting renewable energy sources, policy reforms and regulatory changes, examining successful energy initiatives in other countries, political challenges, economic constraints, technological limitations, public awareness and participation, anticipated improvements in pakistan’s energy sector, the role of innovation and technology, long-term energy sustainability goals, historical perspective on pakistan’s energy situation.

To comprehend the current energy crisis in Pakistan, it’s essential to trace its historical evolution. Over the years, Pakistan has faced a growing demand for energy, driven by its burgeoning population and industrialization. Initially, the country had a relatively stable energy sector. However, several factors contributed to the eventual crisis.

The energy crisis in Pakistan can be attributed to a multitude of factors:

• Insufficient Energy Production : One of the primary causes is the inability to generate an adequate amount of energy to meet the increasing demand. This stems from a lack of investment in the energy sector and outdated power generation facilities.
• Transmission and Distribution Losses : A significant portion of the energy generated is lost due to inefficient transmission and distribution systems. This not only exacerbates the crisis but also strains the economy.
• Dependence on Non-Renewable Energy Sources : Pakistan heavily relies on non-renewable energy sources, primarily fossil fuels, such as coal, natural gas, and oil. The dependence on these finite resources makes the energy sector vulnerable to price fluctuations and supply disruptions.
• Economic and Political Factors : Economic challenges, including circular debt in the energy sector, have impeded progress. Political factors, such as policy inconsistency and governance issues, have also played a detrimental role.

The energy crisis has far-reaching consequences:

• Economic Impact : Frequent power outages disrupt industrial operations and lead to financial losses. This hampers economic growth, foreign investment, and job creation.
• Social Implications : Households and agricultural activities suffer due to power cuts, impacting the quality of life. Access to reliable energy becomes a privilege, rather than a basic necessity.
• Environmental Consequences : Overreliance on fossil fuels results in air pollution and greenhouse gas emissions. Furthermore, energy projects often have adverse ecological effects.

The energy crisis in Pakistan is a complex issue with multifaceted causes and consequences. Addressing it requires a comprehensive understanding of the nation’s energy landscape.

Energy Demand and Supply Gap

As of the present day, Pakistan continues to grapple with a significant energy demand and supply gap. The rapidly growing population and increasing industrialization have driven up the need for electricity and other forms of energy. Unfortunately, the country’s energy production has not kept pace with this rising demand.

To understand the current energy scenario, it’s essential to examine the role of various energy sources:

• Fossil Fuels : Pakistan predominantly relies on fossil fuels for its energy needs. Coal, natural gas, and oil power a significant portion of the country’s energy grid. However, this dependence on non-renewable sources makes Pakistan vulnerable to international price fluctuations and supply disruptions.
• Renewable Energy : Although Pakistan has made strides in harnessing renewable energy sources such as hydro, wind, and solar power, their contribution to the overall energy mix remains relatively small. Embracing renewable energy is pivotal to achieving a more sustainable and diversified energy landscape.

The Pakistani government has taken several steps to address the energy crisis:

• Power Generation Projects : Various power generation projects have been initiated to increase the capacity and reduce the demand-supply gap. Investments in modern and efficient power plants have been made.
• Energy Conservation Measures : Efforts to promote energy conservation and efficiency include encouraging the use of energy-efficient appliances, improving building codes, and implementing energy-saving practices in industries.
• International Collaborations : Pakistan has sought international assistance and collaborations to bolster its energy sector. Agreements with other countries for the construction of power plants and infrastructure development have been established.

Despite these initiatives, the energy crisis persists, and comprehensive measures are required to bridge the gap between demand and supply.

Socioeconomic Consequences

we will explore the socioeconomic consequences of the energy crisis in Pakistan and its environmental implications, shedding light on the multifaceted nature of the problem and its pervasive impact on society and nature.

The energy crisis in Pakistan has taken a heavy toll on the industrial and manufacturing sectors. Power outages disrupt production processes, leading to financial losses and hampering economic growth. Industries struggle to meet deadlines, which can deter foreign investment and hinder the creation of new job opportunities. As a result, the lack of reliable energy has become a significant roadblock to industrial development and economic stability.

For the average citizen in Pakistan, the energy crisis translates into daily inconveniences. Frequent power cuts disrupt daily life, affecting everything from household chores to education and entertainment. In rural areas, where agriculture is a vital source of livelihood, irregular access to electricity impedes irrigation and the use of modern farming equipment. Crop yields are affected, leading to food security concerns.

The energy crisis also has repercussions on employment. Reduced industrial output and limited job opportunities in the manufacturing sector have contributed to unemployment. Moreover, the economic instability resulting from the crisis discourages investment and business growth, further exacerbating the unemployment issue.

Energy affordability is a critical concern. As energy costs rise due to the energy crisis, the poorest segments of the population struggle to meet their basic energy needs. Access to electricity and clean cooking fuels remains a challenge for many, perpetuating poverty and inequality.

The socioeconomic consequences of the energy crisis in Pakistan are profound and multifaceted, affecting individuals, industries, and the nation’s overall economic stability.

Environmental Implications

In the following we will delve into the environmental implications, including air pollution, water usage, and ecological impact, which are an integral part of this crisis.

One of the most pressing concerns related to Pakistan’s energy crisis is the environmental impact. The heavy reliance on fossil fuels, especially in the power generation sector, leads to significant air pollution. Emissions of particulate matter, sulfur dioxide, and nitrogen oxides from these sources contribute to poor air quality in many urban areas.

The emission of greenhouse gases, such as carbon dioxide, from the burning of fossil fuels exacerbates global climate change. Pakistan, like the rest of the world, is experiencing the consequences of a changing climate, including more frequent and severe weather events.

Energy production in Pakistan often involves water-intensive processes. Hydroelectric power generation, for example, relies on water reservoirs, which can impact local ecosystems and water availability. Additionally, the extraction and processing of fossil fuels can contaminate water sources, posing risks to both the environment and public health.

Large-scale energy projects, whether they involve the construction of dams for hydroelectric power or coal-fired power plants, often have direct ecological consequences. Dams can alter river ecosystems and impact aquatic life, while coal mining and power plants can lead to deforestation, habitat destruction, and long-term environmental degradation.

Transitioning to renewable energy sources offers a path to mitigate many of these environmental concerns. Solar, wind, and hydroelectric power have a significantly lower environmental footprint compared to fossil fuels. Embracing these sustainable alternatives can reduce air pollution, water usage, and ecological impact while also contributing to a more sustainable energy future.

Pakistan has been facing an energy crisis for over a decade, which has had a significant impact on the country’s economy and people’s livelihoods [4] . Here are some researched and statistical data related to the Pakistan energy crisis:

• Pakistan started to face severe electricity shortages in 2006, which have worsened over time [1].
• Pakistan’s electricity shortfall is currently around 5,000 megawatts (MW) per day, and the gas shortfall is 2 billion cubic feet per day [5] .
• The energy crisis has been a major drag on the economy, with an estimated cost of 10% of the GDP over the past 5 years [4].
• The energy shortages are estimated to cost around 2% of GDP annually [5].
• The electricity demand in Pakistan has been increasing rapidly, and the country does not produce enough energy to meet demand [3].
• The renewable energy sector in Pakistan has been growing, and it has been suggested as a remedy for the energy crisis [1].
• Pakistan has a significant potential for renewable energy, including solar, wind, and hydropower [4].
• The government of Pakistan has been pursuing short-, medium-, and long-term solutions to address the energy crisis [3].
• The energy crisis in Pakistan has been a possible source of regional conflict [3].
• https://www.mdpi.com/1996-1073/11/9/2424
• https://www.iea.org/countries/pakistan
• https://www.usip.org/sites/default/files/PW79_Pakistans_Energy_Crisis.pdf
• https://www.mdpi.com/1996-1073/16/1/423
• https://www.usip.org/sites/default/files/SR375-Pakistans-Power-Crisis-The-Way-Forward.pdf

[1] https://www.mdpi.com/1996-1073/11/9/2424 [2] https://www.iea.org/countries/pakistan [3] https://www.usip.org/sites/default/files/PW79_Pakistans_Energy_Crisis.pdf [4] https://www.mdpi.com/1996-1073/16/1/423 [5] https://www.usip.org/sites/default/files/SR375-Pakistans-Power-Crisis-The-Way-Forward.pdf [6] https://www.sciencedirect.com/science/article/pii/S2211467X2200013X

Solutions and Recommendations

In the following, we will explore potential solutions to the energy crisis in Pakistan, including strategies to improve energy efficiency, diversify the energy mix, enhance infrastructure, and promote renewable energy sources. Addressing these environmental concerns is an integral part of any comprehensive solution to the crisis.

Efforts to improve energy efficiency and conservation are pivotal in addressing the energy crisis. This includes:

• Promoting Energy-Efficient Technologies : Encouraging the use of energy-efficient appliances, industrial processes, and building designs can significantly reduce energy consumption.
• Energy Audits and Management : Conducting energy audits and implementing effective energy management systems in industries and institutions can identify areas of waste and inefficiency.

To reduce Pakistan’s vulnerability to fossil fuel price fluctuations and supply disruptions, diversification of the energy mix is essential. This involves:

• Expanding Renewable Energy : Scaling up the use of renewable energy sources like solar, wind, and hydropower can provide a more stable and sustainable energy supply.
• Nuclear Energy : Exploring the potential for nuclear energy can provide a reliable source of power, though this comes with its own set of challenges, including safety and waste management.

Investing in infrastructure improvements is crucial for ensuring a reliable energy supply. This includes:

• Upgrading Transmission and Distribution Systems : Reducing losses in the transmission and distribution of electricity can help bridge the demand-supply gap.
• Grid Modernization : Implementing a modern smart grid system can improve energy distribution and reduce waste.

A significant portion of the energy crisis is due to losses in the transmission and distribution of electricity. Measures to address this issue include:

• Technical Upgrades : Modernizing and upgrading the existing infrastructure to minimize losses.
• Loss Monitoring and Management : Implementing systems to continuously monitor and manage losses to prevent theft and inefficiencies.

The private sector can play a crucial role in addressing the energy crisis. The government should create an enabling environment for private investment by offering incentives and removing regulatory barriers.

Government policies should encourage and support the growth of renewable energy:

• Incentives : Providing financial incentives, such as tax breaks and subsidies, to entities investing in renewable energy projects.
• Net Metering : Implementing net metering policies to allow individuals and businesses to feed excess renewable energy back into the grid.

Addressing the energy crisis in Pakistan requires significant policy reforms:

• Energy Pricing : Rationalizing energy prices to reflect true costs can reduce inefficiency and wastage.
• Policy Consistency : Ensuring consistency in energy policies to attract investment and promote long-term planning.

Case Studies

In the following, we will explore international case studies to draw valuable lessons from successful energy initiatives around the world. These lessons can provide valuable insights for Pakistan as it works towards addressing its energy crisis.

To address the energy crisis in Pakistan, it’s valuable to draw insights from successful energy initiatives in other nations. Several countries have effectively managed their energy challenges and can serve as models for Pakistan’s energy reform efforts.

• Germany’s Energiewende : Germany’s transition to renewable energy, known as “Energiewende,” has shown that a commitment to renewables and energy efficiency can reduce carbon emissions and create a sustainable energy future.
• China’s Renewable Energy Expansion : China’s aggressive investment in renewable energy, particularly in solar and wind, demonstrates the potential for rapid growth in these sectors.
• Norway’s Hydroelectric Power : Norway’s extensive use of hydroelectric power provides a model for effective utilization of renewable energy sources, which Pakistan can also tap into given its geographical features.
• South Korea’s Nuclear Energy : South Korea’s experience in developing and managing nuclear power can offer insights into safe and efficient nuclear energy utilization.

By studying these case studies and adopting successful strategies, Pakistan can chart a more sustainable and resilient energy future.

Challenges and Barriers

In this we will delve into the challenges and barriers that impede Pakistan’s progress in addressing the energy crisis. Understanding these challenges is crucial to developing effective solutions.

Political instability, lack of consensus on energy policies, and reluctance to implement necessary reforms can hinder progress. Addressing these issues requires strong leadership and bipartisan cooperation.

The economic challenges associated with circular debt, subsidies, and financial mismanagement in the energy sector are significant hurdles. Resolving these issues will require careful financial planning and structural reforms.

The outdated infrastructure and technology in the energy sector need substantial upgrades. Embracing modern technology and innovation is vital to enhancing efficiency and reducing losses.

Engaging the public in energy conservation and sustainable practices is essential. Public awareness campaigns and education can foster a culture of responsible energy use.

Future Outlook

In the final we will explore the future outlook for Pakistan’s energy sector, highlighting anticipated improvements, the role of innovation and technology, and long-term energy sustainability goals.

Despite the formidable challenges, there is room for optimism regarding Pakistan’s energy future. Several developments are expected to improve the energy landscape in the coming years:

• Investment : Increasing domestic and foreign investments in the energy sector, coupled with better financial management, can help alleviate economic constraints and spur infrastructure development.
• Policy Reforms : Ongoing policy reforms and consistency in energy policies can provide a conducive environment for the private sector and facilitate the transition to cleaner and more sustainable energy sources.
• Technological Advancements : The integration of advanced technologies, such as smart grids and energy storage solutions, can enhance the efficiency and reliability of energy distribution.
• International Support : Collaborations with other nations and international organizations can bring expertise, funding, and technical assistance to Pakistan’s energy projects.

Innovation and technology will play a pivotal role in shaping Pakistan’s energy sector:

• Renewable Energy Innovations : Advances in solar and wind energy technologies are making these sources more affordable and efficient, making them increasingly viable for Pakistan’s energy needs.
• Smart Grids and Energy Storage : Smart grid technology can improve the management and distribution of energy, while energy storage solutions can help mitigate supply challenges.
• Clean Energy Research : Ongoing research into cleaner and more efficient energy production methods can accelerate Pakistan’s transition towards a more sustainable energy mix.

Looking ahead, Pakistan must establish long-term sustainability goals for its energy sector:

• Reducing Emissions : Committing to lower greenhouse gas emissions through the increased use of renewables and more efficient energy generation methods.
• Energy Access for All : Ensuring universal access to reliable and affordable energy, particularly for the underprivileged, is a crucial long-term goal.
• Resource Diversification : A diversified energy mix that reduces reliance on fossil fuels and promotes renewables is pivotal for long-term sustainability.

The energy crisis in Pakistan is a complex challenge with profound implications. However, with a strategic approach that includes policy reforms, technological innovation, and international collaboration, Pakistan can transition towards a more sustainable, reliable, and efficient energy system that benefits its economy, society, and environment. It is imperative for the nation to work towards these goals to secure a brighter energy future for its citizens.

Welcome to the official author account of words.pk! I am a passionate writer and researcher who loves exploring the rich and diverse culture of Pakistan. Through my writing, I aim to showcase the beauty and complexity of this vibrant nation, from its history and traditions to its art, music, cuisine, and more. With years of experience in blogging, and content creation, I have honed my skills in storytelling and crafting compelling narratives that captivate readers

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Pakistan’s energy quagmire: Subsidies, debt, and the quest for sustainability

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In the heart of South Asia, Pakistan grapples with a crippling energy crisis, its grip tightening with each passing year. Over 28% of Pakistani households in 2019 were already burdened by high energy costs, a consequence of the country's heavy reliance on imported, non-renewable fuels. This figure is projected to exceed 30% as inflation continues to spiral upwards in the energy sector.

At the heart of the issue lies a misguided approach to energy policy. Instead of prioritizing a transition to cleaner energy sources, the Pakistani government funnels billions into servicing debts accrued by the ailing power sector.

Ballooning circular debt

This annual expenditure on power subsidies has reached an alarming PKR 0.58 trillion in the fiscal year 2024, highlighting a shortsighted strategy that fails to address the root cause of the problem.

This misplaced focus has done little to alleviate the PKR 2.5 trillion debt already accumulated by September 2023, even with tariff hikes implemented across the board. As energy demands steadily rise, Pakistan finds itself caught in a self-perpetuating energy quagmire.

Desperate for quick fixes, the government plans to terminate subsidies for agricultural tube wells in June 2024. However, this knee-jerk reaction carries its own set of risks.

The increasing cost of power in Pakistan is a cause for concern, particularly as the nation grapples with the financial fallout of the COVID-19 pandemic. Rising inflation in energy costs is likely to push the percentage of households struggling with expensive energy beyond the current 28%. The government's current focus on servicing debts rather than transitioning to cleaner and more sustainable energy sources could lead to a vicious cycle of escalating costs and increasing financial burdens on both the government and the general population.

Reliance on coal

Moreover, Pakistan's reliance on coal as a primary energy source poses a significant challenge to the country's sustainability goals. As the government grapples with the immediate financial crisis, the shift towards coal threatens to compromise long-term environmental and health considerations. This raises concerns about the nation's commitment to international climate goals and the well-being of its citizens.

A closer look at the subsidy trail reveals a troubling picture. Over the past decade, the government has poured billions into the power sector, with the annual outlay skyrocketing from PKR 245,100 million in 2013-14 to a staggering PKR 579,075 million in 2023-24. This surge in subsidies coincides with a concerning trajectory for the power sector's circular debt, which ballooned to PKR 2.5 trillion by September 2023 despite tariff hikes.

Skewed priorities

The breakdown of subsidies further exposes the skewed priorities. While the public utility giant WAPDA/PEPCO receives the lion's share of handouts, Karachi Electric Supply Company (KESC) also gets a significant chunk of the pie. This raises questions about the efficiency and transparency of these entities and whether the subsidies are actually reaching those who need them most.

Pakistan's predicament can be likened to a man trapped in quicksand. Every desperate attempt to escape, such as terminating agricultural subsidies or increasing reliance on coal, only sinks him deeper. The solution lies not in short-term fixes but in a bold and comprehensive shift towards sustainable energy sources.

Beacon of Hope

Renewable energy, like solar and wind power, offers a beacon of hope in this bleak landscape. Not only are these sources cleaner and more environmentally friendly, but they also hold the potential to break the cycle of dependence on imported fuels and reduce the burden of debt.

Pakistan possesses abundant potential for renewable energy generation. Studies estimate that the country has the capacity to generate over 50,000 MW of solar power alone. Yet, only a fraction of this potential is currently being tapped.

Investing in renewable energy infrastructure and creating a conducive policy environment are essential steps toward breaking free from the self-perpetuating energy crisis. This not only requires government commitment but also active participation from the private sector and civil society.

The transition to clean energy will not be without its challenges. Initial costs may be higher, and existing infrastructure may need to be revamped. However, the long-term benefits far outweigh the short-term hurdles. Sustainable energy will not only ease the financial burden on households and businesses but also contribute to cleaner air, improved public health, and a more secure energy future for Pakistan.

The time for half-hearted measures and quick fixes is over. Pakistan's energy crisis demands a paradigm shift—a move away from fossil fuels and towards embracing the power of renewable energy. Only then can the country break free from the quicksand of debt and chart a course towards a brighter, more sustainable future.

Pakistan stands at a critical juncture in its energy landscape, grappling with the interplay of subsidies, debts, and the urgent need for sustainable solutions. The government's current approach, marked by substantial annual expenditures on power subsidies and a focus on debt servicing, may provide short-term relief but fails to address the root causes of the energy crisis. The termination of subsidies for agricultural tube wells, while a potential cost-cutting measure, could exacerbate the larger issue of escalating power costs and coal dependency.

• pakistan energy crisis
• energy debt
• circular debt
• renewable energy
• solar power
• sustainability
• environmental damage
• climate goals
• power subsidies
• government policy
• economic challenges
• future of pakistan
• Nouman Sharif

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Home → Articles → Essay on Energy Crisis in Pakistan

Written by Ayesha Zafar • December 28, 2021 • 12:00 pm • Articles , Current Affairs , Pakistan , Published Content • One Comment

Essay on Energy Crisis in Pakistan

Ms Ayesha Zafar is currently pursuing her Bachelor's in International Relations from National Defence University, Islamabad. She has authored multiple academic publications including research articles and book chapters. Her areas of interest include Middle Eastern politics, the geopolitics of Central Asia, and the Indo-Pacific region

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Causes of Energy Crisis: A Brief Overview

The global energy crisis, arising from a demand-supply imbalance exacerbated by natural disasters, political instability, economic growth, and technological changes, is currently intensified by the post-COVID-19 economic recovery, the war in Ukraine, and diverse weather conditions. This crisis is notably impactful in Pakistan, marked by electricity and oil and gas shortages, causing prolonged outages, disruptions, electricity theft, and price hikes.

The challenges in Pakistan involve population growth straining electricity demand, inadequate infrastructure, reliance on costly or insufficient fuel sources, and circular debts in the electricity sector. Political divisions impede crucial projects like dam construction, economic challenges hinder funding for new energy policies, and the neglect of cleaner energy sources worsens the country’s energy crisis issues.

Globally and locally, the energy crisis poses significant challenges, affecting economies, increasing poverty, and risking a global recession. Urgent interventions are essential to establish sustainable and reliable energy supplies, and for energy conservation.

The Constant Load Shedding

In this essay, the grave energy crisis in Pakistan will be discussed and analysed with relevant examples and statistics. Several factors have convulsed Pakistan with power shortages, and the most important among them is arguably rooted in deficiencies of governance rather than pure supply.

This complicated crisis, which has long been running, is not only instigating hiccups for consumers but also threatening the country’s economy and its precarious security situation. Thus, the World Bank expressed the need for reforms to increase electricity reliability and ensure cost-effectiveness.

According to the report published in 2018, Pakistan’s power sector caused a total of  $18 billion  or 6.5% of the GDP loss to the economy, in 2015. Nonetheless, effective and timely reforms could have saved $8.4 billion in business losses and increased household incomes by at least $4.5 billion a year, the report added. 

Decisively, the Pakistan Economic Survey 2019–20 revealed that in the year 2020, Pakistan increased its installed electricity generation capacity up to  37,402 MW . However, only an estimated 73.91% of Pakistan’s population has access to  electricity , whereas around 50 million people still lack access to grid electricity, according to the World Bank 2019 report.

World Bank & Its Possible Solutions for the Current Energy Crisis in Pakistan

To overcome Pakistan’s energy crisis, the World Bank’s Board of Executive Directors in June 2021 approved a total of  $800 million  in funding for two projects in Pakistan, namely the Pakistan Program for Affordable and Clean Energy (PACE) and Securing Human Investments to Foster Transformation (SHIFT). To get the best possible solutions to the energy crisis , Pakistanis need to understand what renewable energy is , what the potential is, what the challenges are, and what the best way forward for implementation is for local and international projects.

Worth $400 million, PACE will help Pakistan’s transition to low-carbon energy and introduce powerful reforms in the energy sector including subsidies for consumers. In this regard, Rikard Liden, task team leader for the PACE program stated, “Decarbonizing the energy mix will reduce the dependence on  fossil fuel imports  and vulnerability to price fluctuations because of movement in exchange rates. PACE prioritizes action on such reforms, which must be sustained to address circular debt and set the power sector on a sustainable path.”

On the other hand, SHIFT, which is worth another $400 million, intends to improve health and educational services while bringing the federal and provincial authorities on board. Altogether, these two initiatives by Pakistan in collaboration with the World Bank aim to empower the power sector for energy development.

Accusations Against the World Bank

Nevertheless, a recent report released by Recourse, a European think tank, has stunned not only Pakistani officials but has also raised multiple questions in the minds of the general public. According to the European think tank, the  World Bank  is the major reason behind Pakistan’s decades-long energy sector crisis.

In its report titled “World Bank’s Development Policy Finance (DPF) 2015–21: Stuck in a carbon rut,” the European think tank disclosed that its studies conducted in Indonesia and Pakistan have found the World Bank endorsing the use of natural gas and backing fragile energy sectors that are heavily invested in coal, instead of promoting renewable energy sources.

Emphasizing the need to have proper checks and balances, the think tank referred to the PACE program (2021-2022) that aims to ensure Pakistan’s transition to low-carbon energy. It stated in its report that, as per the agreement with the World Bank, the funding was subject to the condition that Pakistan’s authority would accomplish a  66% percent  renewable energy target by 2030 by espousing a least-cost generation plan.

However, the targets for the energy sector have been slashed from 30-33 percent to nearly 17 percent , which will result in massive environmental degradation and resource exploitation. Outrageously, the year 2021 marks the second year of foundational reforms since Pakistan showed compliance to the World Bank’s  ‘Prior Actions’  under Development Policy Finance (DPF) amounting to $1.4 billion.

IGCEP Power Plan Under Scrutiny

While questioning the reliability of the plan, the European think tank has blamed the World Bank’s DPF operation for its destabilizing effect on the ability of Pakistan to achieve the transition to a sustainable renewable energy conduit. 

Not just this, another shocking news came as the think tank conversed about the pressure on the energy committee of Pakistan to approve the controversial Integrated Generation Capacity Enhancement Plan (IGCEP-2047) that the National Electric Power Regulatory Authority (NEPRA) vice-chairman refused to sign in the first place, keeping in view the reverberations it will yield later.

This political pressure to fast-track the IGCEP came back in August when  Hartwig Schafer , vice-president of the World Bank, made his way to Pakistan and urged the government to take necessary actions to implement power sector reforms. In this regard, the Institute of Energy Economics and Financial Analysis (IEEFA), together with the Alliance for Climate Justice and Clean Energy, undertook a recent study that revealed the flaws and potential consequences of the IGCEP plan. 

It stated in its report titled “Pakistan Risks Locking into Overcapacity and Expensive Power” that the “power demand growth forecasts made under the  Integrated Generation Capacity Enhancement Plan-2047  [IGCEP-2047] are too high and do not take into account the impact of COVID-19.”

The study finds GDP growth to increase from 4% to 5.5% by 2025, yet the plan could make Pakistan stuck in overcapacity in the long run and upend sustainability and affordability as experienced by states like China, India, Indonesia, and Bangladesh since they overestimated consumer demands.

Notwithstanding the fact that the  5.3GW coal-fired  power plants under IGCEP will be operationalized by 2030 and have a collective utilization of just 14%, they will make Pakistani coal plants stranded since functioning at such a low utilization rate is impossible. Thus, IGCEP’s patronage of expensive coal power plants for energy production over the much cheaper renewable energy resources indicates the failure of the plan to live up to the country’s affordability principle.

Prioritizing Action and Evaluation

In light of the fact that the World Bank’s “Priority Action” will make Pakistan suffer the most disparaging energy crisis in the long run, the essay recommends halting the enactment of the program as soon as possible. The energy demand, which is expected to quadruple in Pakistan in the coming years, will not only cause the consumer to undergo a grave energy crisis, worsening energy security, but will also bring massive pressure on the state to conciliate the demands of the people.

Therefore, this essay outlines important steps that have to be taken at the earliest to overcome the energy crisis in Pakistan. Pakistan must introduce power sector reforms that support a transition to renewable energy (solar energy, hydro power, etc.) and look for alternatives that would yield energy efficiency and protect the environment to a greater extent. 

The time has come when the government has to work on red-tapism, corruption, and other constraints that are hindering foreign investment in the energy sector and should focus on institutional reforms that are much more desirable than ever. The government also needs to focus on encouraging organizations such as ezBike that are introducing electric vehicles in the country.

In this regard, the China-Pakistan Economic Corridor (CPEC), a flagship project, can prove phenomenal for the energy sector, as China stated during a meeting in Islamabad that it has so far invested around $12.4 billion in Pakistan’s energy sector, and a total of 12 power generation projects having the capacity to generate 7,240 MW of energy are either completed or in the construction phase as per the 2019 report. 

Importantly, the installed electricity generation capacity was recorded at 34,282 Megawatts in Jul-Mar 2018-19 which is pretty encouraging for the energy sector. For that reason, CPEC is a golden opportunity for Pakistan to bring the country out of the energy crisis. To conclude this essay, Pakistan should take urgent action and ensure a fair investigation of the World Bank’s projects before the energy crisis becomes irreversible. 

If you want to submit your articles and/or research papers, please check the  Submissions  page.

The views and opinions expressed in this article/paper are the author’s own and do not necessarily reflect the editorial position of Paradigm Shift .

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One Reply to “Essay on Energy Crisis in Pakistan”

Very interesting

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E-Paper | August 22, 2024

Average daily gas

700mmcfd shortfall

Off-flexold rural villges

436.2 millionbb 2007 est

30,090 bbl/day  2007 est

• NATURAL GAS
• ALTERNATIVE ENERGY

The year started with the shut down of Uch power plant producing 585MW of electricity, as one of the pipelines providing fuel was blown up in the district of Jaffarabad. Pakistan faced one of its most crucial gas crises, with the shortfall rising up to 1.8 billion cubic feet (bcf). The year also experienced the worst CNG load shedding resulting in losses and problems for the consumers. However OGRA increased the gas tariff by 14 per cent in the beginning of the year which was one of the biggest tariff hikes in the history of Pakistan. Moreover, the energy shortfall reached up to 2,700 MW.

Sheikhan gas field, which is located in Kohat, Kyber Pakhtunkhwa, was discovered. Moreover, the torrential rainfall in the year resulted in floods which caused much damage to the existing infrastructure transmitting/transferring energy and fuel. Towards the end of the year, country’s first rental power plant (RPP), with the capacity of 232 MW was inaugurated in Karachi.  

NASHPA oil fields were discovered in Karak district of Kyber Pakhtunkhwa. In the same year, Karachi faced one of its most crucial power breakdowns on June 17 in which the entire city was without power for 21 hours and more.Moreover, the country faced a power shortfall of 4,500 MW in the same year with the domestic demand rising up to 11,000 MW. However only 6,500 MW of generated power was catering to the entire demand.  

The demand and supply gap pertaining to electricity in Pakistan increased by 15 per cent.The major load shedding crisis also commenced in the same year with power outages extending up to 16 hours a day in many cities of the country.  

Pakistan faced one of its biggest power failures after Bhutto’s assassination in which production fell by 6,000 MW.

Mela oil fields were discovered in the area of Kohat located in the province of Khyber Pakhtunkhwa.

International Sovereign Energy, a Canadian company, signed an MoU with Oil and Gas Development Company Limited. The memorandum entailed further development of Toot Oil Fields. Pakistan was hit by one of its most devastating earthquakes which resulted in a vast damage to the infrastructural capital responsible for transmitting/transferring fuel. In the December of 2005, Karachi electric Supply Company, one of the largest vertically integrated power supply company in Pakistan was privatised.

Chanda oil fields located in Khyber Pakhtunkhwa started oil production.

Balochistan Liberation Army allegedly bombed one of the minor pipelines transmitting gas from Sui gas fields.

The oil fields owned by Union Texas Pakistan were producing more oil than the Potwar wells.

Rajjan oil field, located in Gujjar Khan, was discovered.

Qadirpur gas field was discovered in the province of Sindh. It remains the third largest gas field in Pakistan.

Dakni gas field started commercial production in December 1989.

The year witnessed the peak in oil production from Toot Oilfields which was 2,400 barrels per day. Moreover, Chak Naurang field located 90 kms away from Islamabad was discovered in the June of 1986.

Tando Adam oil field, located in Hyderabad, was drilled and completed.

Dakni gas field, located about 135 Kms in the south-west of Islamabad, was discovered in 1983.

Union Texas Pakistan discovered an oil field in lower Sindh.

Dhodak gas field was discovered in the province of Punjab.

The commercial production from Toot Oilfields started in 1967.

The Toot Oilfields, located in the Potwar region of Punjab were found. During Ayub Khan’s regime Pakistan Petroleum and Pakistan Oilfields explored and drilled the first well. Toot Oilfields have an approximate capacity to produce 60 million barrels of oil.

Commercial drilling and exploring of Sui gas fields was started. Sui gas field contributes substantially to fulfil Pakistan’s fuel requirements and have a daily production of approximately 550 MMscf.Pakistan Petroleum Limited (PPL) discovered gas reserves at Uch gas field.

The first oil field in Pakistan was discovered in the province of Balochistan near a Sui gas field. During the same time period, Sui gas field, which remains the biggest natural gas field in Pakistan, was discovered.

Essay on “Energy Crisis in Pakistan” for CSS, PMS, Judiciary Examinations

• August 30, 2021
• Essay for CSS PMS and Judiciary Exam

This is an essay on “Energy Crisis in Pakistan” for CSS, PMS, and Judiciary Examinations. The energy crisis is the largest single drain on Pakistan’s economy. This crisis stems from a fuel mix transformation initiated two decades ago when power generation came to rely more on imported furnace oil than hydropower. The current energy crisis began to manifest itself in earnest by late 2007. So here is a complete Essay on “Energy Crisis in Pakistan” for CSS, PMS.

Introduction

• Energy, demand for all fields
• Cheap ways of producing Energy

Causes of Energy Crisis

• Lack of dams
• Inability to explore coal: 6th largest coal reserves in the world
• Lack of renewable energy sources
• The problem of circular debt
• Losses in transmission and distribution
• Wastage of energy
• Domestic and household consumption
• Aging of the equipment
• High cost of fuel
• Economic loss
• Agricultural loss
• Closure of industries
• Unemployment
• Social issues

Energy Policy (2013-2018)

Suggestions

Alternative sources of Energy

Nuclear power

• Building of darns
• Long term dams
• Medium-term dams
• Short term dams

Exploit the coal reserves

Regional gas and oil pipelines

IPI project

TAPI project

Updating the system of transmission and distribution

Essay on “Energy Crisis in Pakistan” for CSS, PMS, Judiciary Examinations

Energy is the lifeline of a nation. The economic engine and the wheels of industry, agriculture, and business need the energy to move forward. Pakistan faces a major energy crisis in natural gas, power, and oil. Power outages usually last 10-12 hours a day in the cities and more in the rural areas. This has left the industries of Pakistan (mainly agricultural, secondary and tertiary sectors) stunned and so they are unable to fully operate.

This has a very negative impact on the economy of the country. The demand for energy in Pakistan is huge, and cannot be fulfilled by electricity production based on oil. It can only meet 20% of our requirement through native production and the remaining oil is imported from the Gulf States and other countries. No major oil, the field has been discovered in the last three decades. It is clear that other alternative production methods must be considered to meet the demand. Most likely one that is cheap, considering the initial setup cost, and costs attached.

The second method of production we use is thermal (i-e using coal to produce electricity). Pakistan has been blessed with wealthy mineral resources, but the sad part is that we are too ign0rant to explore them. We are sitting on gold mines and yet we do nothing about it. Balochistan, for instance, is rich in all sorts of minerals and could be exploited heavily. If we could solve the feudal problems of the provinces, and let the national and international companies explore the area, we might solve our fuel problems too. But this is a precious non-renewable resource, so we need better options.

Another major option is hydroelectric power generation. This is the cheapest and most feasible way of producing electricity for our country. Two major energy dams in Pakistan are Tarbela and Mangla. If only the proposed Kalabagh darn would be constructed, 80% of our energy needs would be fulfilled. The best option is to construct this dam and take advantage of the natural hydrography of Pakistan to the maximum possible extent.

Wind power and solar power generation are good alternatives as well. Their initial costs are low when compared to other methods, and are definitely in the best interests of our country.

Following are the Causes of the Energy Crisis in Pakistan.

In Pakistan, no major dam was constructed after the completion of Mangle and Terbela Dams early I980s. Though the demand for electricity was increasing many governments came and completed their terms but neither government built darns which is the cheapest source of the energy. Pakistan needs to make Kalabagh darn and Basha dams but due to politicization and lack of dedicated politicians, Pakistan is confronting with the problem of the energy crisis. Electricity from hydel cost us Rs. 2-4 rupees per unit.

Pakistan is blessed with a large amount of coal. No serious work is done to explore coal for power generation. This complains that the coal quality is inferior. However, ·ready-made solutions are available to burn any type of coal. The government is looking for the private sector to play its role. In our opinion, the government itself should come forward and install the power plants on the site of coal mines only.

The government is not producing electricity from renewable sources of energy such as wind, solar, tidal, biogas, etc. Though Pakistan has maximum summers suiting for solar energy there are huge taxes which are paid while purchasing this technology. Through solar, Pakistan can produce up to 1,00,000 MW of electricity. Besides, wind energy has the potential of producing 50,000 MW of electricity but Pakistan is not producing from this cheapest source.

If serious work is done then the total shortage can be met from the Hydro and wind power sectors. It is also suggested that small loans should be provided to consumers to install small hydro and solar cells for one family usage of electricity.

One of the main reasons for the serious shortfall in the generation of thermal electricity 1s the problem of the “circular debt” which the present government inherited from the previous regime. In 2007, the government did not compensate the power companies for the subsidy that was being provided to consumers. The power companies in turn could not pay the oil and gas companies, reducing their liquidity to import the furnace oil that was needed to generate electricity.

The interim government , before the elections, in fact, forced the commercial banks to lend Rs34bn to the oil companies whose credit limits were already exhausted. This problem of “circular debt” became more serious in the summer of 2008, as petroleum prices jumped from $100 to $147 a barrel. It is really surprising that this problem has become the main cause of increasing load-shedding but has not so far been addressed on a priority basis. In 2015 the circular debt reached Rs.600 billion.

Very heavy line losses in transmission and distribution because of old and poorly maintained transmission systems, estimated at over 20 percent compared to eight to ten percent in other countries. Large-scale theft of electricity is clearly revealed by the growing difference between units generated or purchased and those paid for.

Wastage of energy by the industry consumes 30 percent of total electricity due to less efficient systems and other practices. For example, the Chinese consume 30 percent less electricity in textile mills because they use water partially heated by solar panels in their boilers. Overuse of energy by the transport sector (consuming 28 percent of total energy) due to old and poorly tuned engines.

Domestic and household consumption which uses 45 percent of total electricity also depicts wasteful and unnecessary uses of lights, air-conditioners, and large-scale illuminations on different occasions. The problems outlined above reveal many structural flaws in our energy system. These include over-dependence on imported energy, inadequate political will, limited financial support and very weak implementation capacity.

One very important reason attributed to this energy shortage is the aging of the generating equipment which could not develop the electricity as per the design requirement. This is the responsibility to continuously updating the equipment and keeping a high standard of maintenance. we sincerely think serious thought should be given for general overhaul and maintenance of existing equipment to keep them in good working order.

So far energy conservation is concerned, newspapers pay lip service in seminars. No serious thought is being given to utilize the energy at the optimum level. A new culture needs to develop to conserve energy. Sometimes on government level illiteracy is blamed for the failure of the energy conservation program. this is not true. Maximum energy is consumed by the elite class which controls all the resources of knowledge and communication. But for their own luxury, they themselves ignore the problem. Government should seriously embark on an energy conservation program.

Following are the effects of the energy crisis in Pakistan.

Energy is pivotal for running all other resources and the crisis of energy directly influences all other sectors of the economy. The economic progress is hampered by a decline in agricultural productivity as well as by halting operations of industries. One important factor of lower GDP and inflation of commodity prices in recent years is attributed to shortfalls in energy supply. Pakistan is facing a high cost of production due to several factors like the energy crisis, the hike in electricity tariff, the increase in interest rate, devaluation of Pakistani rupee, increasing cost of inputs, political instability , removal of subsidy & internal dispute.

Above all factors increase the cost of production which decreases the exports. Exports receipts decrease from$ 10.2B to$ 9.6B. The global recession also hit badly the textile industry. Double-digit inflation also caused a decrease in production in the textile sector.

The agricultural productivity of Pakistan is decreasing due to the provision of energy for running tube wells, agricultural machinery, and the production of fertilizers and pesticides. Thus higher energy means higher agricultural productivity.

Nearly all Industrial units are run with energy and breakage in energy supply is having dire consequences on industrial growth. As a result of the decline in energy supply, industrial units are not only being opened but also the existing industrial units are gradually closing.

By the closure of industrial units and less agricultural productivity, new employment opportunities ceased to exist, and already employed manpower is shredded by the employers to increase their profit ratios. Thus energy crisis contributes to unemployment.

Pakistan’s textile industry is going through one of the toughest periods in decades. The global recession which has hit the global textile really hard is not the only cause for concern. Serious internal issues including the energy crisis affected Pakistan·s textile industry very badly. The high cost of production resulting from an instant rise in energy costs has been the primary cause of concern for the industry.

The depreciation of the Pakistani rupee during last year has significantly raised the cost of imported inputs. Furthermore, double-digit inflation and the high cost of financing have seriously affected the growth in the textile industry. Pakistan’s textile exports in turn have gone down during the last three years as exporters cannot effectively market their products since buyers are not visiting Pakistan due to adverse travel conditions and it is getting more and more difficult for the exporters to travel abroad. Pakistan’s textile industry is lacking in research &development.

The production capability is very low due to obsolete machinery and technology. This factor is primarily related to the domestic usage of energy (cooking, heating, and water provision). Load shedding causes unrest and frustration amongst the people and results in agitation against the government.

The government has finally formulated the much-awaited National Energy Policy 2013-18. Under the policy, power sector subsidy will be phased out by 2018, and load-shedding will be ended by 2017. It aims at generating surplus electricity in 2018, privatizing government-owned power plants and a few power distributing companies (Discos), bringing the double-digit cost of power generation to a single digit, and restructuring the water and power ministry.

National Electric Power Regulatory Authority (Nepra), Oil and Gas Regulatory Authority (OGRA), adjustment of outstanding dues owed by public and private organizations through federal adjusters, and formation of regional transmission and power trading system. The policy comprises seven points envisions a profitable, bankable, and investment-friendly power sector which meets the nation·s needs and boosts its economy in a sustainable and affordable manner while adhering to the most efficient generation, transmission, and distribution standards.

To achieve the long-term vision of the power sector and overcome its challenges, the government has set the following goals: Build a power generation capacity that can meet the country’s energy needs in a sustainable manner; create a culture of energy conservation and responsibility; ensure generation of inexpensive and affordable electricity for domestic, commercial and industrial use; minimize pilferage and adulteration in fuel supply; promote world-class efficiency in power generation; create a c.utting edge transmission network; minimize .financial losses across the systen1, and align the ministries involved in the energy sector and improve governance .

There are Various Methods to Solve the Energy Crisis in Pakistan.

Though wind, Pakistan has potentials of wind energy ranging from 10000 MW to 50000 MW, yet power generation through wind is in initial stages in Pakistan and currently 06 MW has been installed in the first phase in Jhampir through a Turkish company and 50 MW will be installed shortly. More wind power plants will be built in Jhampir, Gharo, Keti Bandar, and Bin Qasim Karachi.

Solar power involves using solar cells to convert sunlight into electricity, using sunlight hitting solar thermal panels to convert sunlight to heat water or air. Pakistan has the potential of more than 100,000 MW from solar energy. The building of solar power plants is underway in Kashmir, Punjab, Sindh, and Balochistan. However, private vendors are importing panels / solar water heaters for consumption in the market.

Alternative Energy Development Board (AEDB) is working for 20,000 solar water heaters in Gilgit Baltistan. Mobile companies have been asked by the government to shift the supply of energy to their transmission towers from petroleum to solar energy panels.

Biomass production involves using garbage or other renewable resources such as sugarcane, corn, or other vegetation to generate electricity. When garbage decomposes, methane is produced and captured in pipes and later burned to produce electricity. Vegetation and wood can be burned directly to generate energy, like fossil fuels, or processed· to form alcohols. Brazil has one of the largest renewable energy programs from biomass/biodiesel in the world, followed by the USA. Alternative Energy Development Board (AEDB) of Pakistan has planned to generate 10 MW of electricity from municipal waste in Karachi followed by similar projects in twenty cities of the country.

Tidal power can be extracted from Moon-gravity-powered tides by locating a water turbine in a tidal current. The turbine can turn an electrical generator, or a gas compressor, that can then store energy until needed. Coastal tides are a source of clean, free, renewable, and sustainable energy. Plans are underway in Pakistan to harness tidal energy; however, no implementation has been made so far.

Nuclear power stations use nuclear fission reactions to generate energy by the reaction of uranium inside a nuclear reactor. Pakistan has a small nuclear power program, with 425 MW capacity, but there are plans to increase this capacity substantially. Since Pakistan is outside the Nuclear Nonproliferation Treaty, it is excluded from trade in nuclear plants or materials, which hinders its development of civil nuclear energy. The remaining issues in the development of nuclear energy are an enrichment of uranium from U235 to U238, controlling chain reaction, and dumping of solid waste.

Pakistan has the potential for hydro resources to generate 41000 to 45000 MW, however, only 6555 MW is currently being generated by this important renewable resource. Four large hydropower dams namely Kalabagh 3600 MW, Bhasha 4500 MW, Bunji 5400 MW, and Dasu 3800 MW can be constructed to generate hydroelectricity. Similarly, many small to medium hydro plants can be installed on rivers and canals, etc.

The longer-term solution to the energy crisis will be to restore the hydro-thermal mix to 60:40 or at least 50:50 in the next five years. The Water Accord of 1991 had o~ened the way for constructing many dams to store water and generate electricity. But the continuing controversy over the KalabaghDam became a major obstacle. Surprisingly, even many smaller and non-controversial hydroelectric projects have been delayed without any justification.

The hydel projects in the pipeline include the following: Neelurn Jhelurn (969 MW), Tarbela Fourth Extension (960 MW), SukiKinari (840 MW), Munda Dam (700 MW), Khan Dubar (130 MW), Allai (126 MW), and Jinnah Hydroelectric power project (96 MW).

Pakistan has the world’s sixth-largest reserves of coal, after the recent discoveries in Thar. The total coal reserve in Pakistan is about 175 billion tons. The current coal production is only 3.5 million tons per year, which is mostly used for the brick and cement industry. Coal has typical problems, such as a high sulfur content (it produces sulfur dioxide, the source of acid rain), mineral matter content (leading to ash and pollution problems), carbon dioxide emission (contributing to global warming), and high moisture content.

However, technologies are available to minimize all of these. Conversion technologies are currently under development to convert coal into environmentally-friendly methanol and hydrogen gas to be used as a clean fuel. The US is working on a major initiative called future gen to produce “zero-emission” power plants of the future. Thar coal can be cleaned and the sulfur reduced so that it can be burnt in conventional coal power plants and also convened into gas. Coal gasification is a slightly more expensive process, but the gas from coal is a proven and cleaner technology. The Chinese had prepared a feasibility report in 2005 to produce 3,000 MW at 5.8 cents per unit, but the project could not move forward because they were offered only 5.3 cents.

There are also many possibilities of regional cooperation in building gas and oil pipelines. These include the Iran-Pakistan-India gas pipeline; the Turkmenistan-Afghanistan-Pakistan gas pipeline; an oil, gas, and electricity corridor from Gwadar to Western China, the import of 1,000 MW electricity from Ragun hydro station in Tajikistan for which an agreement was signed in March 1992 at the rate of 3.3 cents per unit.

The worldwide electricity production, as per the World Bank, is as follows; coal: 40 percent; gas 19 percent; nuclear 16 percent; hydro 16 percent; oil seven percent. Pakistan’s power production is gas 48 percent; hydro 33 percent; oil 16 percent; nuclear two percent, and coal 0.2 percent. There has been a global trend to shift away from oil because of its rising price expected to reach $100 a barrel by the end of this year depending on the international geopolitical situation.

Despite the lowest cost of hydroelectric power, there have been environmental, ecological, and geopolitical concerns over the building of large dams. The supply of natural gas in Pakistan has been depleting over the years, and the country is now looking at the option of imponing gas from Qatar and Central Asia. This leaves the possibility of exploring nuclear, coal, and other alternative energy sources.

Nuclear energy and coal form the lowest source of power production in Pakistan. On the other hand, the world average for nuclear energy is 16 percent and for coal 40 percent. Let us first consider these two potential sources of electric power production for Pakistan. The US obtains 20 percent of its electric power from; clear. energy with 104 reactors; France 78 percent with 59 reactors, Japan 24 percent with 54 re~tors, the UK 23 percent with 31 reactors, and so on. Even India has signed a civilian nuclear cooperation agreement with the United States to develop its nuclear capability for power generation and economic development . It has currently six reactors in operation with a capacity of 3750 MW, and another six with a capacity of 3,340 MW are under construction.

The new agreement will further boost the nuclear power generating capacity of India. Today, nuclear power plants have average capacities of 600-1,000 MW. Pakistan only produces two percent of its power through two reactors (Karachi and Chashrna at 137 MW and 300 MW respectively). Pakistan is a nuclear technologically advanced country with capabilities to produce fuel, yet falls behind most other countries, including India, in terms of nuclear power production. The US introduces 51 percent of its power using coal, Poland 96 percent, South Africa 94 percent, India 68 percent, Australia 77 percent, China 79 percent, Israel 77 percent, UK 35 percent, Japan 28 percent, while Pakistan produces only 0.2 percent of its power through coal.

In Pakistan, smaller windmills are now visible, such as the ones at Gharo, where SZABIST set up an experimental research station many years ago. The Sindh government has recently announced plans to build a 50 MW wind farm in the vicinity of the coastal region at Gharo. Solar power (photovoltaic or thermal) is another alternative energy source option that is generally considered feasible for tropical and equatorial countries. Even though the accepted standard is 1,000 W/m2 of peak power at sea level, an average solar panel (or photovoltaic – PV – panel), delivers an average of only 19- 56W/m2. Solar plants are generally used in cases where smaller amounts of power are required at remote locations. PV is also the most expensive of all options making it less attractive.

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Pakistan Energy Crisis; Causes, Consequences and Solutions

• January 20, 2023
• Pakistan Energy Crisis; Causes ...

Table of Contents

Pakistan has been facing an energy crisis for several years. The main causes of the crisis include a lack of investment in new power generation capacity, outdated and inefficient power plants, and inadequate transmission and distribution infrastructure. Additionally, the country has long struggled with issues of energy theft and non-payment of bills by consumers.

The crisis has led to frequent power outages, which have negatively impacted economic growth and the daily lives of citizens. The government has taken steps to address the crisis, such as investing in new power generation projects and implementing policies to reduce energy theft, but more work needs to be done to fully resolve the issue.

Causes of Energy Crisis in Pakistan

The energy crisis in Pakistan is caused by a combination of factors, including:

• Insufficient power generation capacity: Pakistan has not invested enough in new power generation projects, leading to a shortage of electricity.
• Inefficient power plants: A large portion of Pakistan’s power generation capacity is from old and inefficient power plants, which consume more fuel and produce less electricity.
• Transmission and distribution losses: The transmission and distribution infrastructure in Pakistan is inadequate and outdated, leading to significant losses of electricity during transmission and distribution.
• Power theft and non-payment of bills: Power theft is a major problem in Pakistan, as is the non-payment of bills by consumers. This leads to a financial crisis for power companies, which then struggle to generate enough revenue to maintain and expand their operations.
• Fuel shortages: Pakistan has been facing fuel shortages for power generation, which leads to power outages and load shedding.
• Dependence on oil-based power generation: Pakistan is highly dependent on oil-based power generation, which makes it vulnerable to fluctuations in global oil prices.
• Water scarcity: Pakistan has been facing water scarcity which leads to the non-availability of water to run hydro-power stations at full capacity.
• Political instability: Political instability and lack of continuity in policies have led to the neglect of power projects and lack of investment.

Overall, resolving the energy crisis in Pakistan will require a combination of short-term solutions, such as increasing power generation capacity and reducing transmission and distribution losses, as well as longer-term solutions, such as investing in renewable energy sources and improving the overall efficiency of the power sector.

Consequences of Energy Crisis in Pakistan

The energy crisis in Pakistan has had a number of negative consequences for the country and its citizens:

• Economic damage: The energy crisis has had a significant negative impact on Pakistan’s economy. Businesses have been forced to close or scale back operations due to power outages, and the lack of reliable electricity has made it difficult for industries to operate at full capacity.
• Reduced quality of life: Power outages have caused inconvenience and hardship for citizens, particularly during the hot summer months. Inadequate access to electricity has also made it difficult for people to access basic services such as education and healthcare.
• Increased poverty: The energy crisis has contributed to increased poverty in Pakistan, as many people have lost their jobs or seen their incomes reduced due to power outages and the resulting economic damage.
• Environmental damage: The energy crisis has led to increased use of fossil fuels and wood-burning for power generation, which has contributed to air and water pollution and deforestation.
• Reduced foreign investment: The energy crisis has led to reduced foreign investment in Pakistan, as investors are deterred by the lack of reliable electricity and other infrastructure.
• Loss of competitiveness: Pakistan’s energy crisis has led to increased production costs, which has resulted in reduced competitiveness in international markets.
• Political instability: The energy crisis has led to social unrest and protests against the government.
• Dependence on imports: Pakistan’s energy crisis has led to increased dependence on imported energy, which has strained the country’s balance of payments and further weakened its economy.

Overall, the energy crisis in Pakistan has had a wide-reaching and negative impact on the country’s economy and society, and resolving the crisis will be crucial for achieving long-term economic growth and development.

Solutions of the Energy Crisis in Pakistan

There are a number of potential solutions to the energy crisis in Pakistan, including:

• Increasing power generation capacity: Pakistan needs to invest in new power generation projects, such as building new power plants and expanding existing ones, in order to increase the country’s overall power generation capacity.
• Developing renewable energy sources: Pakistan should invest in renewable energy sources such as solar and wind power to reduce its dependence on fossil fuels and to lower its greenhouse gas emissions.
• Improving the efficiency of power plants: Pakistan should invest in upgrading its existing power plants to increase their efficiency and reduce the amount of fuel they consume.
• Upgrading transmission and distribution infrastructure: Pakistan should improve its transmission and distribution infrastructure to reduce losses of electricity during transmission and distribution, which will improve the overall efficiency of the power sector.
• Reducing power theft and non-payment of bills: The government should implement policies and measures to reduce power theft and improve bill collection to make the power sector financially stable.
• Increasing water storage: Pakistan should invest in increasing water storage capacity, so that water can be stored during the monsoon season and used to generate power during the dry season.
• Improving energy conservation: Pakistan should invest in energy conservation measures, such as promoting energy-efficient appliances and buildings, to reduce the overall demand for electricity.
• Diversifying energy mix: To reduce dependence on oil-based power generation and to decrease the impact of fluctuation of oil prices, the government should invest in diversifying the energy mix to include coal, hydro, nuclear, and renewable energy.
• Improving governance: The government should work on improving governance by promoting transparency and accountability in the power sector and ensuring continuity in policies.

Implementing these solutions will require significant investment, political will and strong governance. Additionally, it will take time to see the results and to fully resolve the energy crisis in Pakistan.

Further Readings

Easing Pakistan Energy Crisis

Child Labour in Pakistan; Causes, Consequences and Solutions

Corruption in Pakistan; Causes, Consequences and Solutions

Unemployment in Pakistan; Causes, Consequences and Solutions

Poverty in Pakistan; Causes, Consequences, Solutions

Economic Challenges of Pakistan

Education System of Pakistan: Challenges and Way Forward

Pakistan Healthcare System Challenges and Solutions

Admin at The Pakistan Gazette

• The United States of America Constitution and Political System
• How Political Instability Affects Economy
• Constitution of the United Kingdom, UK
• Parliamentary System Merits for Pakistan

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A sustainable solution for electricity crisis in Pakistan: opportunities, barriers, and policy implications for 100% renewable energy

• Research Article
• Published: 12 August 2019
• Volume 26 , pages 29687–29703, ( 2019 )

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• Syed Ahsan Ali Shah 1 &
• Yasir Ahmed Solangi 1  

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This study aims to explore the potential of renewable energy resources to attain a 100% renewable electricity system in Pakistan. Currently, most of the electricity supply comes from fossil fuel, which is imported because Pakistan lacks its own resources. The imports of fossil fuel cost a huge amount and therefore afflict the already fragile economy. Further, the policy to rely on fossil fuel has significantly failed to address the energy crisis that has been lingering for the past two decades, and an acute shortage of electricity hinders the progress of various sectors of the economy. In addition, the global climate index has listed Pakistan among the top 10 climate-vulnerable countries, which makes it pertinent for the country to take precautionary measures for climate change mitigation. Pakistan has abundant renewable energy resources, which are more than sufficient to meet 100% of the present and future electricity demands. On the basis of the existing literature and the dilemma of the energy crisis and climate vulnerability, this study argues that transition to a 100% renewable electricity system is not only an option but also an urgent requirement. Further, we list the potential barriers, in the context of Pakistan, and put forward the policy implications for a swift transition to an entirely renewable electricity system.

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• Pakistan’s energy supply overly depends on imported fuels.

• Energy imports threaten future energy security.

• Continued fossil fuel consumption deteriorates the climate.

• Indigenous renewable energy sources can deliver 100% electricity demand.

• Political will is important for renewable energy transition.

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Shah, S.A.A., Solangi, Y.A. A sustainable solution for electricity crisis in Pakistan: opportunities, barriers, and policy implications for 100% renewable energy. Environ Sci Pollut Res 26 , 29687–29703 (2019). https://doi.org/10.1007/s11356-019-06102-0

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Received : 11 February 2019

Accepted : 29 July 2019

Published : 12 August 2019

Issue Date : October 2019

DOI : https://doi.org/10.1007/s11356-019-06102-0

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Electricity Crisis in Pakistan Essay

This topic is related to the Electricity Crisis in Pakistan Essay and it is one of the major reasons which are hindering the economic growth of Pakistan. The unavailability of power is affecting directly or indirectly every sector of life. Making people feel frustrated as well as helpless. The load-shedding span has amounted to almost 6 hours a day for industries and about 4 hours for domestic consumers. This destructive power shortage has brought the industrialist as well as the local people on the roads for an urge of protest, but despite all such anti-government actions this struggle is in vain as there is no progress in the electricity supply to the consumers. Due to the unavailability of electricity Pakistan’s export is highly affected as industries are unable to meet up to the orders leaving their clients with no other option instead of switching to other vendors in other countries.

Electricity Crisis in Pakistan

This is not only about the export but the national producers are shifting their production plants to nearby countries like Bangladesh and China where electricity supply is convenient and side by side cheap. In the past 4 years, modern cities are experiencing about 8-12 hours of load shedding as compared to the rural areas where load shedding has to accede to almost 12-14 hours of load shedding. This Electricity Crisis in Pakistan is also affecting the gross domestic product of our country as the country’s GDP is decreasing to 2% every passing year indicating a destructive economic breakdown in the near future if this problem is not coped up.

This Electricity Crisis in Pakistan is ultimately becoming the major cause of increasing unemployment in our country. There is no electricity so industries are being forced to fully shut down leaving the labor and employees helpless and without any jobs. It is stated that in the last 3 years, thousands of employees who have lost their job due to this energy crisis have returned to their homes from where they have come in search of jobs. Many of the orders were canceled in industries and were not canceled and never met the prescribed standards and quality. Karachi Electric Supply Corporation (KESC) is blamed for this electricity shortage but according to them they are also handcuffed by the gas suppliers as they required 22 million cubic feet of gas for normal production which is reduced to about 115 million cubic meters a day, so when there will be no fuel there will be no electricity produced. So, in conclusion, Pakistan is facing one of the most disparaging and critical Electricity crises in Pakistan and if it is not resolved as a major priority Pakistan’s economy which is still not developed will be in real-time danger.

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