energy crisis in pakistan essay in easy wording

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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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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Essay Outline: Energy Crisis in Pakistan: Consequences and Recommendations

Table of Contents

1. Introduction

1.1 Energy as lifeline in modern countries 1.2 Brief review of international research on Pakistan’ energy crisis

2. Pakistan’s Energy Scenario

2.1 Energy Supply (94.65 kwh) 2.2 Energy consumption (70.1 kwh) (per capita 357.34 kwh)

3. Sources of energy Procurement in Pakistan

3.1 Non-Renewable Energy Sources and Current Projects 3.2 Renewable Energy Sources 3.3 Alternative energy Sources

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4. Issues Faced by Energy Sector

4.1 Policy Issues a) Adhoc policies and decisions (not goal oriented) b) Inadequate Institutional arrangement/Absence of single institution to monitor supply companies c) Shift towards expensive and unstable Thermal Energy d) Oil used for power generation e) Independent Power Plants (IPPs) and Rental Power Plants f) Provision of subsidiesed electricity to WAPDA & agricultural tube wells g) Lesser utilization of Thar coal and hydel power generation

4.2 Governance and Management Issues a) Poor governance by public and private sectors b) Power theft (line losses) c) Default in revenue recovery by public and private sectors d) Weak Regulatory body: NEPRA e) Politicization of mega projects: Kalabagh Dam

4.3 Technical Issues a) Inadequate maintenance and repair of power plants b) Dilapidated Transmission and distribution systems c) Imbalanced and imported resources based energy mix

4.4 Cost Issues a) Unaffordable and unsustainable energy

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5. Consequences of Energy Crisis

5.1 Economic Factors a) Closure of industries b) Flight of capital to overseas domains c) Shrinking Foreign Direct Investment (FDI) 5.2 Agricultural sector 5.3 Industrial sector 5.4 Social Factors a) Poverty and unemployment b) Destabilized health sector c) Chaos in society and political uncertainty d) Public trust erosion

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6. Recommendations

6.1 Short Term Measures (Within 6 months to 1 year) a) Resolution of circular debt b) Prompt implementation of NEPRA determined Tariffs c) Ensuring recovery of revenues from public sector d) Crackdown on energy/electricity theft e) Judicious energy usage and use of electricity saving devices f) Energy conservation campaigns and demand management g) Fostering niche markets for early commercialization of technologies

6.2 Medium Term Measures (within the next 5 years) a) Development of an integrated energy policy b) Allotment of funds to GENCOs for refurbishment of plants and transmission systems c) Promotion of renewable energy at household level and in off-grid remote areas d) Move to decentralized and distributed energy generation f) Utilization of copper transmission wires for rectifying line losses

6.3 Long Term Measures (within the next 10 years & beyond) a) Correction of the energy mix imbalance b) Improvement in governance and elimination of corruption c) Import of energy from Tajikistan through TAPI pipeline d) Establishment of alternative energy and power research development and testing facilities e) Development of global alliances to secure dependable supply chain relationships f) Adoption of environmentally suitable energy policies g) Enhance market potential and viability for international investors h) Tactful utilization of Pakistan’s geostrategic location by serving as an energy corridor i) Population control to decrease growing demand * Wilson Institute and Michael Kugelman’s reports on Energy Crisis in Pakistan j) Construction of hydel dams at strategic locations

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Energy Crisis in Pakistan Proposal

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Energy is an essential component of the growth and development of the economy. It is due to this fact that all governments in the world strive to ensure that the energy availability within their nations meets their needs and requirements (UKERC, 2012). This is due to the fact that each and every industry within the economy requires energy in one form or anther.

As Ahmad (2009) asserted, energy is the backbone which growth and development are based upon. Industry, agriculture, transportation, education and the service industry all require energy to ensure that all their operations are conducted effectively and efficiently. Therefore, it will be difficult for a nation that is not able to meet its energy requirements to achieve its short term and long-term goals and objectives (Peters, 2010).

In history, man has come up with a lot of discoveries and innovations. This has transformed the manner in which we operate, interact with each other and interact with ourselves. The life that we are currently in highly depends on technology. Therefore technology is the basis on which the worlds economy thrives upon (ElBaradei, 2012).

The origin of modern technology can be traced back to the era of industrial revolution in Europe. It is during this time that a lot of discoveries and advancement were made in the field of industry. During this period, man came up with a variety of machines and mechanisms that replaced the human effort in the process of production in terms of labour.

These machines were more effective and efficient and hence, the process of production was enhanced. It is due to this fact that goods were produced more cheaply in bulk in order to meet the market demand. As a result of high efficiency in production and reported high sales, economic growth was experienced. The standards of living of people have been improved and the GDP of nations also increased (ElBaradei, 2012).

However, in the process of industrial revolution, a key ingredient was responsible for the success that was being experienced at that time. This was energy. The availability of energy was and still is an essential ingredient of the production process. From this realisation, man has always strived to come up with cheaper and better alternative sources of energy.

A lot of money is spent on research and development programs in a bid to come up with cheaper, better and safer sources of energy (Iqbal, 2012). During the industrial revolution, the most common source of energy was coal. However, with advancements in technology, other sources of energy have been realised.

At the present moment, the most common source of energy that is used in the world is electricity (Iqbal, 2012). However, due to its demand, the availability of this form of energy has been declining over the last decade.

Pakistan is one of the nations that has been experiencing power shortages. For the last several decades, the country has been experiencing oil, gas and electricity shortages. All the regimes that have come to power have always promised to come up with a solution to this predicament.

In the process, these governments have come up with policies and plans to end the energy crisis in the nation but none of these goals or objectives have ever been realised. However, this situation has become worse within the last four years. This has mainly been triggered by the changing weather patterns in the globe and the rise in global oil prices.

At the same time, the situation has been made worse during this period that Musharraf is in office (Ahmad, 2009). Several allegations have been linked to this government in terms of misappropriation of public funds and corruption (Ahmad, 2009). As a result, it has been difficult for the nation to meet its short term and long-term goals and objectives.

It is due to this fact that the nation has been unable to meet its power demands and more importantly being unable to enhance its electricity production activities. Therefore, the nation has been experiencing massive blackouts. This situation has become even worse within the last four years. The increase in population and the rising level of urbanization have made the situation to become even worse (Ahmad, 2009).

This has made the nation unable to meet its ever-increasing demand for electricity. As a result, it is common for urban areas to experience blackouts for more than 8 hours a day (Ahmad, 2011). The situation is even worse in rural areas since power blackouts last between 12-16 hours in a day.

In recent years, violent protests have emerged as a result of retaliation to the power crisis that the nation is experiencing. In 2010, violent protests emerged in several parts of the nation, especially major cities of Pakistan in retaliation to the power blackouts and insufficient availability of energy in the nation (Ahmad, 2011). These violent acts led to arsons and looting in the regions that were affected.

Despite of these acts, the government has still been reluctant in improving the situation. This resulted into the reoccurrence of similar situations in 2011 (Ahmad, 2011). At the same time, several business entities have been shut down due to this predicament.

As Ahmad (2011) asserted, due to the unavailability of power during business operating hours of the say, small and medium scale businesses in major cities have found it hard to keep their operations going due to the lack of electricity.

Most of these businesses that have been shut down are in the service industry that relies mainly on power for their operations (Davis, 2011). This has left thousands of people jobless; a heavy blow towards achieving economic sustainability.

According to Ahmad (2009), by 2009, Pakistan had a power deficit of approximately 3,500 mega watts (MW). On the other hand, industries that have been shut down accounted for approximately 1,500 to 2,000 MW. Therefore, the total power deficit that the nation was experiencing as per 2009 was around 5,000 MW.

According to analysts, this figure was expected to rise in the coming years if the government do not take corrective measures to resolve the situation. As per the present moment, the ministry of Water and Energy and the Ministry of Petroleum and Natural Resources has not come up with means through which electricity production within the nation can be boosted.

Therefore, the situation is expected to become even worse given the fact that the prices on oil have always been rising. At the same time, weather patterns have been changing due to global warming. As a result, there has been reduction in rainfall and prolonged dry season. This has resulted in the decline of water in dams where hydroelectric power is being generated within the nation (Zimmerman, 2010).

In order to determine the welfare of people within a community, one of the indicators that analysts use is energy consumption (Ahmad, 2009). The energy consumption per capita is the index that is used to give the required results of such a study with regards to the constrain at hand.

The energy consumption in Malaysia is approximated to be 104MMBtu. At the same time, the energy consumption of Iran is 106MMBtu. The average of Europes electricity consumption as per 2009 was 170MMBtu. During the same year, the words electricity consumption was at 68MMBtu. However, for 2009, the power consumption of Pakistan was at 15MMBtu (Ahmad, 2009).

This made the nation to be ranked among the lowest in the world. Therefore, according to Ahmad (2009), for Pakistan to ensure that it copes with its ever-increasing energy demands, it needs to increase its electrical power output by at least 50% during its short-term period of 2012-2020.

Therefore, for Pakistan to ensure that its economic growth is guaranteed, it needs to ensure that the availability of energy is capable of meeting its mixed demand within the nation. In Pakistan, electricity is mainly used for three major purposes; industrial, commercial and domestic (Ahmad, 2009).

The government is thus expected to come up with sustainable solutions that will ensure that power is available to all these users at an affordable price range (Ahmad, 2009). At the same time, the government needs to ensure that not only the process of power production will be increased but the entire supply and distribution of the resource will be well maintained.

Currently, the major source of electricity in Pakistan is from hydel power. According to (Ahmad, 2009), this is the most economical form that electricity can be generated from in Pakistan. Hydroelectric power is also another alternative. However, given the changing weather patterns and the fact that water levels fluctuate between summer and winter, hydroelectric power production in Pakistan had been reduced by 70% by 2009.

It is due to this fact that the nation is in dire need for an alternative source of power in order to meet its ever-rising demand of power for domestic, commercial and industrial uses (Ahmad, 2009). One of the proposed sources of electrical energy in Pakistan has been from wind power. This source of energy has been advocated for since it is relatively easier to harness.

At the same time, this source of energy is deemed to be environmentally friendly since it does not have any adverse effects on man and the environment in terms of pollution (Ahmad, 2009). These factors have made many people to believe that wind energy is one of the most sustainable sources of electricity in the nation and hence one of the key solutions that should be used to alleviate the energy crisis that the nation is in.

However, from an economical point of view, the costs incurred in producing electricity using this option is much higher as compared to hydel power. While the cost of hydel power is at 6 cents per kWh (kilowatt-hour), the cost of wind energy is estimated to be around 13 cents per kilowatt hour (Ahmad, 2009).

This ideally makes wind energy not the best solution to the current situation. However, despite the fact that wind energy might be an expensive option, it should not be ruled out as a source of alternative energy in the nation since it may be sustainable in the long run given the fact that technological advancement may increase the efficiency of wind power production and reduce the costs at the same time.

Therefore, to ensure that the nation is able to meet its power demands, it is essential for Pakistan to re-check its power mix status. At the present moment, natural gas is the main source that is used to generate electricity in Pakistan at 47%. It is followed by oil at 31%. Hydroelectricity and coal stand at 11% and 10% respectively. Nuclear power forms the lowest proportion as it only accounts for 1.2% (Ahmad, 2009).

The government has always been in talks to revive the energy sector of the nation. Despite the fact that none of the strategies that it has come up with has been implemented, the nations hopes are still held up high by the 2030 energy plan of Pakistan (Ahmad, 2009). According to this plan, the power output of the nation is expected to be increased by more than 60%.

The proposed power mix of this plan in terms of generation of electricity will focus more on the use of coal to replace gas. According to this power mix, the use of coal to produce electricity will be increased by 30% while the use of gas shall decline from 47% to 35%.

At the same time, hydroelectric production is expected to rise to 20% while nuclear power production shall be boosted to 3%. The use of oil shall be reduced to 10%. If effected, this power plan will be effective in ensuring that Pakistan is able to meet its energy requirements.

Ahmad, M. 2009, Pakistan energy crisis. Web.

Ahmad, K. 2011, Energy shortage deepens crisis in Pakistan. Web.

Davis, D. 2011, Alternative Source of Energy , Sage, New York

ElBaradei, M. 2012, Tackling the global energy crisis. Web.

Iqbal, S. 2012, energy crisis causes and remedies. Web.

Peters, S. 2010, Sustainable use of resources, Sage, London

UKERC 2012, Energy demand. Web.

Zimmerman, S. 2010, ‘Nuclear Power: The Way Forward’, The Bell Journal of Economics, vol. 1 no. 4, pp. 16-31

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Commentary from the Energy Security Program

Pakistan's energy crisis from conundrum to catastrophe.

An acute ongoing energy crisis poses serious threats to Pakistan’s feeble economy and national security environment. Michael Kugelman (Woodrow Wilson International Center for Scholars) examines the origins of the country’s energy problems, prevailing hurdles to reform, and potential impact of the upcoming general elections.

Pakistan’s acute energy crisis is posing a serious predicament for its feeble economy and volatile national security environment. The country’s energy problems are deep and complex, being rooted more in shortages of governance and political will than of pure supply. This stems from (1) the absence of a comprehensive and integrated energy strategy, resulting in interagency turf wars and a lack of coordination, (2) insufficient revenue to support energy generation and infrastructure, owing to low liquidity in Pakistan’s struggling economy and high rates of tax default, and (3) the leadership’s unwillingness to implement politically unpopular changes to address the situation.

Resolving Pakistan’s energy crisis will thus require political will, additional funding, and new power-generation sources. As the country lacks significant internal sources of revenue, opportunities exist for international donors to finance its energy recovery. The United States already provides a considerable amount of energy assistance to Pakistan, with Congress having released nearly $300 million in new energy aid last summer alone. However, indigenous energy solutions should not simply be discarded, and the Pakistani government should explore the Thar coalfields and alternative energy sources, among other options.

POLICY IMPLICATIONS

• Pakistan should consolidate its many energy-related institutions into a single ministry. This will bring some urgently needed order and efficiency to its dysfunctional energy sector.

A short-term fix that could bring immediate relief is to request a new loan from the International Monetary Fund (IMF). However, because the IMF would probably impose politically delicate conditions, Islamabad is unlikely to make such a request until after this spring’s elections.

Tax reform is imperative and should be designed to provide Islamabad with more revenue to address the energy crisis.

Pakistan can initially better diversify its energy mix by importing clean coal, which is often cheaper than imported oil and gas.

Pakistan will not be able to implement the reforms needed to resolve its energy crisis unless Pakistanis elect leaders this spring who genuinely desire to serve the interests of their country.

Pakistan’s Energy Crisis: From Conundrum to Catastrophe?

Pakistan is mired in an acute energy crisis—one with immense implications for both the nation’s floundering economy and its volatile security situation. According to some estimates, energy shortages have cost the country up to 4% of GDP over the past few years. They have also forced the closure of hundreds of factories (including more than five hundred alone in the industrial hub city of Faisalabad), paralyzing production and exacerbating unemployment. Additionally, they imperil much-needed investments in development and infrastructure. Meanwhile, the nation has been convulsed by energy riots. Protestors, angered by unscheduled outages, have often resorted to violence. They have blocked roads and attacked the homes and offices of members of both the ruling Pakistan Peoples Party and the Pakistan Muslim League, the chief opposition party. Significantly, in February 2013 Pakistan’s minister for water and power warned that the energy crisis has become a national security issue. For all these reasons, energy poses one of Pakistan’s most critical challenges.

Resolving this crisis will require far more than power-generation expansion and other supply-side quick fixes, the de facto policy of the country’s political leadership. Pakistan’s energy problems are deep and complex, and are rooted more in shortages of governance and political will than of pure supply. If the nation is to overcome this crisis, it will need to begin with whole-scale institutional energy sector reform—a politically unwelcome, yet utterly essential, prerequisite for energy relief. Necessary reforms can then follow. The success of such efforts, however, will hinge on the existence of leaders willing to prioritize long-term national development and well-being over short-term political considerations.

Origins and Nature of the Current Crisis

The origins of Pakistan’s energy crisis can be traced back to the 1990s. A major energy crisis was actually averted in the 1970s, when the government launched the massive Mangla and Tarbela dams, leading to a short-lived period of robust hydro-driven energy generation that ably responded to demand. However, after a period of strong economic growth in the 1980s, energy demand soared, and supply and infrastructure could not keep up. The government sought to ramp up generation but was unable to satisfy demand. As Pakistan’s population has risen, and as urbanization has spawned the rise of new industries and other corporate energy customers, the situation has continued to worsen to the present day. Electricity shortfalls reached a peak of 8,500 megawatts (MW) in June 2012—more than 40% of national demand.

With this in mind, it is important to emphasize that Pakistan’s current energy quandary is rooted in paucities that go well beyond those of power supply. In fact, Pakistan is blessed with ample indigenous energy resources; it is especially rich in natural gas, hydroelectricity, and coal. However, in the case of the two most utilized sources of energy—oil and gas—consumption levels are so high that these domestic resources are being rapidly depleted. Pakistan’s national oil and gas company, Oil and Gas Development Company Limited (OGDCL), predicts indigenous oil reserves will be exhausted by 2025, and that Pakistan will run out of domestic sources of natural gas by 2030. Meanwhile, hydroelectricity supply is imperiled by climate change, with less rainfall reducing river flows.

At the same time, governance shortfalls (and not just of the corruption variety) are a key challenge for the power sector. Pakistan’s energy policies come under the purview of several government ministries and agencies, but coordination is lacking, clear lines of authority are absent, and interagency turf wars are legion. The sector also suffers from gross inefficiencies (including 30% transmission and distribution losses), and electricity theft is rife; Pakistanis can regularly be seen hooking onto power lines.

Yet one of the most critical deficiencies plaguing the energy sector is money. With Pakistan’s economy struggling, liquidity is dangerously low. In effect, energy consumers, private producers, the national transmission agency, distribution companies, and even the government itself cannot pay their power bills. Of note, according to figures provided by Pakistan’s water and power ministry, “influential defaulters” owe about $1 billion in overdue energy bills. As a result, the energy sector is deprived of desperately needed revenue to pay for generation, transmission, and distribution, as well as operating and administrative costs. This gap between revenue and expenses—often referred to as “circular debt”—has approached a whopping $4.5 billion and is worsened by the fact that, thanks to generous government-funded subsidies, energy end-costs for consumers are always lower than the actual cost of production. Consequently, the country cannot afford to provide a regular supply of power.

A Lack of Strategy and Political Will

A subset of the energy financing problem is an inability or unwillingness to muster the necessary political will to address the money shortage. More broadly, Pakistan has never developed a comprehensive, integrated energy strategy, and Islamabad’s haphazard policies have failed to address the crisis’s deep roots. The problem lies not with civil servants, bureaucrats, and technical experts who focus on developing energy policies (many of them reasonable and actionable), but rather with the non-expert, high-level political appointees spread across the energy sector and beyond who are charged with implementing them.

Pakistan announced a national energy plan in 2010, though it was dominated by much-mocked—and likely ignored—conservation measures, such as bans on all-night wedding parties and neon billboards, along with the required early closures of street markets. (A more realistic demand-management strategy, announced last year by the Asian Development Bank, calls for the distribution of twenty million low-energy light bulbs.) Other well-intentioned initiatives have likewise not produced results. Pakistan has established the National Electric Power Regulatory Authority (NEPRA), charged with ensuring fair energy competition and consumer protection, but political interference undermines its autonomy and effectiveness. Tariff decisions must be approved by Islamabad, and NEPRA’s four members are all selected by the government. Furthermore, government officials have been known to outright ignore the body’s decisions.

Recent recommendations put forth by Pakistan’s Planning Commission, however, offer some hope. In 2011, the commission released what it described as a “new framework” for economic growth, which calls for more focus on the private sector, cities, and youth. If implemented, the impact would be immense, as the plan would represent a paradigm shift in Pakistan’s development philosophy.

In the context of energy, the document proposes some of the most far-reaching and comprehensive policy measures ever introduced in Pakistan—from full-scale sectoral deregulation to governance reform and the phasing out of many subsidies. Unfortunately, there are several problems. One is that while the Planning Commission is part of the government, it lacks implementation power, and no government entity has stepped up to embrace the commission’s ideas and take on the mantle of implementation. (In fact, government agencies often spar with the Planning Commission.) Another dilemma is that the Planning Commission insists that such measures are only implementable after the country has established an integrated energy policy, which has still not happened. Moreover, Islamabad likely has little desire to authorize the Planning Commission’s measures anyway, given that some of them (such as phasing out subsidies) are fraught with political risk—especially with national elections scheduled for spring 2013. On the subsidy question, in particular, while many experts accurately note that Islamabad’s policies distort pricing, these measures are unlikely to change for political (and not systemic) reasons. This is because subsidies provide temporary relief to an impoverished mass population that often harbors antigovernment sentiment. It also bears mentioning that reducing subsidies could have an unintended effect: increasing the number of Pakistanis who do not pay their taxes (given that if the poor are asked to pay more for energy, they may not have enough money to pay their taxes).

Yet herein lies a major dilemma, because Pakistan’s government would significantly increase its revenue—and hence its ability to pay its energy bills—if more of the country paid its taxes. Former U.S. secretary of state Hillary Clinton has claimed that only 2 million of Pakistan’s population of 180 million pay income taxes, while Pakistan’s Federal Board of Revenue estimates that 700,000 wealthy Pakistanis are not paying their returns. The latter figure, in particular, suggests that revenue gains from increasing the number of citizens paying taxes could be tremendous. However, the government refuses to pressure its most affluent citizens, because many of them are politically connected or politicians themselves. And admittedly, there is no guarantee that Islamabad would actually use this added tax revenue to cover its energy debt; it could well spend the revenue on the repayment of other debts, administrative costs, or even defense.

Scenarios for the Future

Given that Pakistan lacks the revenue to finance an energy recovery, future opportunities abound for international donors, including the United States. Washington, in fact, already provides a considerable amount of energy assistance to Pakistan. The Obama administration identifies energy as a priority area in its civilian assistance program to the country, and Congress released nearly $300 million in new energy aid last summer alone. The U.S. private sector also contributes to Pakistan’s energy sector, including in overtly political ways. Last summer, ConocoPhillips mediated talks between Pakistan and Qatar on a potential natural gas deal in an effort to discourage Islamabad from pursuing a pipeline project with Iran that is opposed by Washington.

Given the extent of Pakistan’s energy woes, and especially its circular debt—which, at its highest point of nearly $4.5 billion, far exceeded the value of Washington’s $1.5 billion in total annual civil assistance—it is folly to expect U.S. energy aid to make a major dent in the crisis. Conversely, if U.S. civilian assistance to Pakistan were to be cut, the reduction of energy-intensive aid would be a significant loss for the country. This assistance includes a USAID infrastructure project, expected to be completed by this year, which adds nearly 1,000 MW to the national power grid—a fifth of Pakistan’s energy shortfall.

This is not to say that indigenous solutions should simply be discarded. Consider the vast Thar coalfields in Sindh Province, where 200 billion tons of reserves have lay dormant since their discovery more than twenty years ago (Thar constitutes the world’s sixth-largest coal deposit). Last year, Islamabad designated Thar as a special economic zone, hoping to lure investors with tax breaks and other incentives. Some, however, believe that the government must be more aggressive. Thar has been a common theme on the campaign trail for this year’s elections, with opposition parties hailing Thar as an elixir for Pakistan’s energy supply crunch and underscoring the urgency of tapping into its riches.

However, what both the government and political opposition fail to articulate is how Pakistan will overcome the formidable challenge of developing the technological and labor capacity to exploit this potential bonanza. Another problem is purely political. Ever since the Thar coal was discovered, the central government has been locked in a disagreement with the Sindh provincial government about how to divvy up the spoils. Islamabad has proposed an 80/20 split, while Sindh has insisted that it retain full control of the coalfields. This 22-year-old disagreement has effectively put on hold the exploitation of Thar’s resource treasures and crystallizes how Pakistan’s energy woes are as much (if not more) a governance and political issue as one of supply and demand.

Encouragingly, Pakistan is also starting to explore other alternative energy sources. Officials have said several small-scale wind projects are under construction. The government has also announced that by 2030 it plans to have a minimum of 5.0% of total commercial energy supply provided by wind, solar, and biowaste, and that 2.5% of Pakistan’s overall energy generation will come from renewables. Islamabad claims that by 2030 about 5,500 MW of Pakistan’s projected 160,000-MW daily energy requirement will come from alternative and renewable sources. These are admittedly ambitious goals, given the miniscule role renewables play in the current energy mix.

Ultimately, it is the issue of implementation that prolongs Pakistan’s energy crisis, making many experts pessimistic that the crisis can be resolved anytime soon. There is no shortage of research, conferences, and proposals offering policy solutions. However, these measures are not executed, because there is no political will to do so. This has long been the case at both federal and provincial levels, as well as with different political parties. While the ruling Pakistan Peoples Party has been the political face of the energy crisis since 2008, the previous government (led by Pervez Musharraf and the Pakistan Muslim League Quaid-e-Azam, or PML-Q) largely restricted its energy policies to supply-generation measures—the same politically safe bets made today. Then, as now, few efforts were made to strengthen energy governance or reform the energy pricing system. Tellingly, even in the rare cases when the government enacts politically risky measures to strengthen the energy sector and overall economy, it often reverses course. In 2011, for example, Islamabad repealed an increase in fuel prices—instituted to raise desperately needed revenue—after a key coalition partner had withdrawn from the government to protest this price hike.

The Clock Is Ticking

With no end in sight, the implications of Pakistan’s energy crisis are stark and go well beyond threats to the country’s economic well-being and stability. Pakistan is currently in the midst of two major societal shifts that could worsen the effects of its energy problems in the years ahead. One is urbanization. While today the majority of Pakistan’s population is rural, estimates suggest that at least 50% could be concentrated in urban areas by the 2020s. Demand for electricity is particularly high in cities, because urban-area industries and homes tend to be more dependent than those in the hinterland on grid-connected energy sources. With droves of Pakistanis entering cities and becoming dependent on grids, pressures on supply will deepen exponentially.

Pakistan’s other notable societal shift that could worsen the energy crisis is the devolution of governance from the federal level to the provincial and local levels. Thanks to the 18th constitutional amendment, which President Asif Ali Zardari signed in 2010, federal ministerial responsibilities and resources are being passed down to local authorities and agencies. This means that many new energy-related functions and duties are being foisted upon provincial and district governments, which suffer from even more capacity constraints, inefficiencies, and financial troubles than their federal counterpart. Local governments will likely inherit the ineffective policies of the federal government as well. Given the central government’s inability to address the country’s energy crisis, there is even less reason to expect that short-handed local-level authorities are up to the task.

How long can Pakistan ride out this storm? Today, many Pakistanis are getting by through their own resourcefulness, as they do on so many occasions when their government fails to provide basic services. This winter, some residents have coped with the nation’s worst gas shortage on record by fashioning homemade pumps from old refrigerators and sucking gas out of distribution systems. Others have done their cooking only when gas stations are closed—the only time they receive any pressure.

Time is running out, however. Pakistan faces rapidly dwindling foreign reserves and a plunging currency that late last year fell to a record low, and double-digit inflation is projected to hit this year. There is the very real fear that Pakistan could soon find itself unable to afford to address its energy crisis—meaning that even stopgap, short-term measures to expand power generation could be eliminated. Such a scenario would presumably increase the frequency and violence of public protests and threaten the state’s ability to maintain order. The consequences could be catastrophic for the country’s economy and stability.

Recommendations and Conclusions

There are some short-term steps that Pakistan can and should take. One is to formally request a new loan from the International Monetary Fund (IMF) to bring both immediate relief to the economy and badly needed liquidity to finance solutions to the energy crisis. However, given that the IMF would probably impose politically delicate conditions—including the phasing out of some energy subsidies—Islamabad is unlikely to make such a request until after this year’s election. Even if the next government follows through, another loan would simply be another short-term fix.

Above all, Pakistan must bring some urgently needed order and efficiency to its chaotic and dysfunctional energy sector. A better coordinated and integrated energy sector can best be attained through the consolidation of the country’s many energy-related institutions into a single ministry. A tighter institutional set-up would allow Pakistan’s energy sector to enjoy better coordination of planning, decision-making, and above all implementation. This would in turn enable it to do away with the reactive, haphazard, and ad-hoc policy environment that has characterized the energy sector for years. Although such a transformation will certainly be difficult to achieve, the seeds have already been planted. Back in the early 1980s, Pakistan experimented with establishing a more coordinated system, but those efforts petered out due to capacity constraints. Today, some influential players in the energy scene—including policymakers—have indicated their support for revisiting the idea. After a new institutional arrangement is in place, Pakistan could move on to policy reform. This should include new pricing measures that remove not all, but many, energy subsidies. Tax reform is another imperative—and should be designed to provide Islamabad with more revenue not just to address the energy crisis but also to assist poor Pakistanis harmed by the phase-out of subsidies.

Pakistan should also make improvements on the energy-demand side—such as by aiming to reduce by half the 30% in losses arising from distribution and transmission (a goal that will entail crackdowns on energy theft). Both federal and provincial authorities should be more vigilant about keeping up with necessary maintenance and repairs at all generation, distribution, and transmission facilities in order to minimize leakage and other losses. Any efforts to improve energy governance will need to occur in tandem with measures to curb wasteful water consumption. Decades of water-intensive agricultural practices—including widespread and subsidized flood irrigation—have helped deplete surface water tables and prompted farmers to expend excessive electricity on tubewells to extract groundwater.

Finally, Pakistan should better diversify its energy mix. This can be done initially by importing clean coal, which is often cheaper than imported oil and gas. With time, if the political spats over Thar’s reserves can be worked out, then the nation would ideally begin to focus on developing indigenous supplies—though a variety of challenges, such as transporting the coal across the nation and overcoming possible resistance to environmental costs, would remain. Pakistan is already making an effort to diversify by pursuing separate pipeline projects with Iran and with Turkmenistan, Afghanistan, and India. However, a variety of factors (international sanctions–based with the former, and security-oriented with the latter) suggest that these projects are far from being consummated. In the meantime, Pakistan should take advantage of its enhanced commercial relationship with India to import energy from that country. Already, the two nations have concluded a deal to export electricity to Pakistan, and they have created a joint working group on petroleum to explore further possibilities for energy trade. Hypothetically, Pakistan-India energy trade could be expanded to feature more region-wide energy commerce, with organizations such as the South Asia Association for Regional Cooperation (SAARC) providing an institutional platform. However, the fractious political relations between South Asia’s states make this prospect unlikely in the near term.

Ultimately, there is just one obstacle to the implementation of these measures, and that is leadership. For years, Pakistani officials have had promising policies at their disposal; yet they have been unwilling or unable to move forward. This spring, if Pakistanis elect leaders with a genuine desire to serve the interests of their country, then the end of its long energy struggles could conceivably be in sight. Yet if the election produces another governing dispensation concerned only about its own interests and political survival, then Pakistan’s energy conundrum could well become an energy catastrophe.

[1] Annabel Symington, “Pakistan Opposition Take Aim at Energy Crisis Ahead of Elections,” Christian Science Monitor , February 1, 2013, http://www.csmonitor.com/World/Asia-South-Central/2013/0201/Pakistan-opposition-take-aim-at-energy-crisis-ahead-of-elections ; and “Pakistan’s Energy Shortage: Lights Out,” Economist , October 8, 2011, http://www.economist.com/node/21531495 .

[2] “Electricity Shortfall in the Country Reaches 8,500 MW,” Dawn, June 17, 2012, http://dawn.com/2012/06/17/residents-protest-prolonged-loadshedding-in-lahore ; and “Pakistan’s Energy Crisis: Power Politics,” Economist, Banyan Asia, web log, May 21, 2012, http://www.economist.com/blogs/banyan/2012/05/pakistan’s-energy-crisis .

[3] Saleem Shaikh and Sughra Tunio, “Pakistan to Boost Renewable Energy to Meet Power Shortfall,” AlertNet, July 6, 2011, http://www.trust.org/alertnet/news/pakistan-to-boost-renewable-energy-to-meet-power-shortfall .

[4] Jon Boone, “Pakistan Power Cut Riots Spread as Politician’s House Stormed,” Guardian, June 19, 2012, http://www.guardian.co.uk/world/2012/jun/19/pakistan-power-cut-riots .

[5] “For Pakistan, Everyday is a Blackout with No End in Sight,” Agence France-Presse (AFP), August 8, 2012, available at http://dawn.com/2012/08/08/for-pakistan-everyday-is-a-blackout-with-no-end-in-sight .

[6] Indira A.R. Lakshmanan, “Clinton Criticizes Low Rate of Tax Collection in Pakistan,” Bloomberg, October 21, 2011, http://www.bloomberg.com/news/2011-10-21/clinton-criticizes-low-rate-of-tax-collection-in-pakistan.html ; and Mehreen Khan, “Energy Subsidies Dilemma Expose Failings of Pakistan State,” Financial Times , Energy Source, web log, August 5, 2011, http://blogs.ft.com/energy-source/2011/08/05/energy-subsidies-dilemma-expose-failings-of-pakistan-state .

[7] “”No End in Sight for Pakistan’s Energy Crisis,” AFP, August 8, 2012, available at http://tribune.com.pk/story/419175/no-end-in-sight-for-pakistans-energy-crisis ; and “Aid to Pakistan by the Numbers: What the United States Spends in Pakistan,” Center for Global Development, Study Group on a U.S. Development Strategy in Pakistan, http://www.cgdev.org/section/initiatives/_active/pakistan/numbers .

[8] Shaikh and Tunio, “Pakistan to Boost Renewable Energy.”

[9] Shahid Javed Burki, “Historical Trends in Pakistan’s Demographics and Population Policy,” in Reaping the Dividend: Overcoming Pakistan’s Demographic Challenges, ed. Michael Kugelman and Robert M. Hathaway (Washington, D.C.: Woodrow Wilson International Center for Scholars, 2011), 67.

[10] “IMF Warns of Deteriorating Pakistan Economy,” AFP, October 5, 2012, available at http://tribune.com.pk/story/447222/imf-warns-of-deteriorating-pakistan-economy .

Michael Kugelman is the Senior Program Associate for South Asia at the Woodrow Wilson International Center for Scholars in Washington, D.C.

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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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Energy Crisis In Pakistan And Its Possible Solutions, Causes and Effects

Pakistan continues to go through an energy crises which has only become more severe from time to time. It is not just slowing down the economy but making life hell for the majority of the citizens. The energy needs of Pakistan are around 15,000 to 20000 MW per day, however currently it is creating only around 11,500 MW, rendering a shortage of 4000 to 9000 MW per day. With time, situation may have improved with the inauguration of many new projects and power plants, however the overall problem remains the same. Here are some of the causes, effects, and solution to the energy crises faced by Pakistan:

Causes: • Inefficient Power Plants: Part of the reason, shortfall exists is inefficient and outdated power plants that are unable to generate electricity that meets the national demand. Moreover, due to cash crunch the plants are unable to operate at the optimum capacity, since they don’t have enough funds to buy the necessary amount of furnace oil.

• Electricity Theft: Electricity theft can be termed as the mother of all evils causing the energy crises. The inefficiencies of the transmission and distribution system, cause this theft to take place, increasing the cost of supplying electricity. Instead of curbing this, the supply companies simply shift the burden of cost to the paying customers. A staggering Rs12.35bn worth of losses were reported owing to electricity theft in the Punjab area, whereas Rs16.5bn in Sindh contributing to a total of Rs59.174b throughout Pakistan.

• Lack of Dams: Currently, the bulk of electricity being supplied comes from the hydroelectric plants and IPPs, both of whom heavily depend upon the availability of water in the dams. Therefore, whenever the water levels drop low, so does the electricity’s supply. Pakistan’s failure to construct a major dam after Tarbellawhich was in the seventies, has greatly exacerbated the problem. Just a few months ago, the water management authority – WAPDA announced that water capacity had fallen to 30%.

Effects: • Public Unrest: Prolonged outages of electricity as well as gas result in public unrest on a mass level creating chaos. This chaos then manifests itself into citizens coming out on streets and disturbing the law and order situation. Many such incidents have occurred, where outraged citizens caused loss of property as well as halting the economic activity. Moreover, many times students are unable to study for their exams, forcing them to hire Essay Writer Services online for their assigned assignments.

• Economic Loss: The capacity utilization which pertains to how much energy is utilized for production in factories, falls down to alarmingly low levels due to lack of energy, interruptions in supply. This renders Pakistan unable to export the surplus materials, forcing the country to import instead, resulting in the depletion of the foreign exchange reserves. Moreover, the Independent Power Plants, that require exorbitant sums to create energy for the purpose of attenuating the shortfall, are also draining the resources of the country since they are operated by foreign companies. In the long run, this hampering of economic growth results in a low GDP.

• Poverty: The closure of industry caused by energy failures results in the subsequent unemployment leading to high levels of poverty.In a country where already 30% of the population is living below the poverty line, this leads to further worsening of situation.

Solutions: • Building more Dams: It is high time that Pakistan invests in the construction of more dams, since the electricity demand is increasing every year and the current capacity of the dams is not enough in fulfilling that demand.

• Investing in Renewable Energy: Only renewable energy can provide sustained, clean, pollution free and environment friendly electricity, which includes hydro power, wind energy, solar energy and tidal energy. Due to the advantages offered by renewable energy which includes low cost, the world has made great strides in shifting from conventional to renewable energy. However, Pakistan continues to heavily rely on furnace oil to produce electricity.

• Curbing Electricity Theft: Electricity theft is the biggest impediment in the uninterrupted supply of electricity. Unless the government introduces large scale measures to curb this problem, by introducing strict penalties for the culprits, and getting them implemented, it will continue to be one of the major reasons contributing towards the energy crises. Such measures on the government’s part are the need of the day.

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Energy crisis in pakistan & its causes, created by editorial board, energy crisis in pakistan :.

Energy crisis has become the most critical issue all over the world. But energy crisis in Pakistan has affected our lives very badly. In cities, we have 12 to 18 hours load shedding, while in villages the situation is even the worst. Furthermore, in winter, we have storage of ‘Sui’ gas too. Energy is just like a blood in the body of modern economy. Let us discuss the causes, effects and possible solution of this situation.

Causes of Energy Crisis :

During the last three decades, we had not built new dams and water reservoirs. We did rely on thermal units. These units are run by oil and gas. The oil prices are soaring higher and higher and no stability is seen in near future. On the other hand, gas reserves are getting short in supply. So, supply is decreasing whereas the demand is increasing, because of growing population. All these things have worsened the situation.

Energy Crisis Effects :

Shortages of energy and load shedding have cast negative effects on our lives. Especially, our economy has been hit hard. Our export orders are not fulfilled in time. Many of the factories and industrial units have been closed. Thus millions of workers have been unemployed. People in home have become the victims of many psychological diseases. During demonstration on roads against the government and power companies, some of them damage public property.

To come out of this horrible situation, we will have to take steps on two levels, Short term and long term. In short term, we should adopt such policies as could run our economy on priority basis. We should also try to save energy. The government should make new agreements with Iran and central Asian republics for cheap energy.

In the long run, we must shift our reliance on hydro projects from thermal projects. The coal reserves of “Thar” can also be used for cheap electricity. If we do not realize the seriousness of this crisis, it can further worsen the situation. So, remedial measures on war-footings must be taken to cope with this giant problems.

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Energy crisis in Pakistan and its possible solutions, causes, and effects?

• April 15, 2023
• Daily Write-Ups , Featured
• 41753 Views

The following article is written by Maryam Khan , a student of Sir Syed Kazim Ali . Moreover, the article is written on the same pattern, taught by Sir to his students, scoring the highest marks in compulsory subjects for years. Sir Kazim has uploaded his students’ solved past paper questions so other thousands of aspirants can understand how to crack a topic or question, how to write relevantly, what coherence is, and how to include and connect ideas, opinions, and suggestions to score the maximum.

Introduction

• The energy crisis is one of the crucial issues which have been faced not only by Pakistan but also the other counties around the globe.

Current situation:-

• 8-10 hours of load shedding
• Shortage of about 7500 megawatt

How the current state of energy in Pakistan is affecting its economy?

• ✓ Use of old technology
• ✓ Excessive use of energy
• ✓ Negligence of government
• ✓ Over population
• ✓ No utilization of natural resources

What are the impacts of the energy crisis?

• ✓ Economic instability
• ✓ Unemployment
• ✓Increase in load shedding
• ✓Time wasting

Remedies to encounter this issue

• ✓ Implementation of advanced technology
• ✓Overcome the excessive use of energy
• ✓Effective policies by the government for check-balance
• ✓Population must be controlled
• ✓Make use of natural resources
• ✓Scheduled distribution of electricity
• ✓Dam Formation

Conclusions

The energy crisis is a critical issue in today’s world. This issue is restricted to Pakistan alone and many other countries that come under its influence. Besides this, Pakistan is one of the countries which face the massive outrage of energy crisis over the last twenty years. This badly affects its economy on so many levels. Unfortunately, this is the result of the Pakistani Government’s negligence. Apart from this, no one ever brings this issue to light from the previous governments. So no proper steps were ever taken to minimize it earlier. However, if the government ever pays any heed to this issue, they will surely bring some improvements till now. Additionally, just by tackling this issue efficiently, massive improvements will be noticed in economic growth. Nonetheless, it’s never too late to take the initiatives to overcome any problem. Moreover, if the government wants to minimize this issue, it will surely do just by making effective policies and implementing them accordingly.

Since every issue has a cause, the negligence of the previous government is considered a root cause of energy crisis issues. Now, the new government finds it challenging and rather hard to regulate it properly. The population is continuously rising along with the number of new businesses as electricity is a fundamental demand in this way the usage of it increasing massively. However, this becomes a serious cause which affects everyone’s life in one way or another. Despite this critical issue, the government has not demonstrated any interest in resolving it. And because of this dry conduct, the problem escalates to the point where it is permanent.

Additionally, the government’s unwillingness to build dams is another significant contributor to the country’s energy crisis. It sounds that either the government is not aware of how to best utilize natural resources. Like every year, a large amount of water is wasted in the country when it could be stored in dams and used to produce power. No, our government is not even taking this into consideration. Building dams will not only help the country generate more power, but it will also help to minimize the danger of floods. Furthermore, using outdated technology really damages production, which reflects the slow progress.

Similarly, there are multiple reasons for this cause because every factor harms the nation’s reputation and unstable its economy. Everyone is accountable for this cause because everyone has contributed in their own unique way. People are wasting electricity, there is no check and balance in the workplace, and nobody cares about looking after their country. To overcome this cause, everyone should play their part; as someone said, “If everyone is moving forward together, then success  takes care  of itself. Every issue can be resolved just by taking some good and effective initiatives towards it collectively.

As every crisis comes up with some aftereffects, load shedding is considered the biggest effect of the energy crisis. This then badly affects every sector in the country. Live become disturbed almost for everyone. Students cannot concentrate on their studies. Employees face delays in their work, factories face early shutdowns and many more. As the south region of Pakistan is the hottest place so, load shedding, there becomes a curse.

In addition to this, load shedding has also affected the country’s economy. It slowdowns the production of goods, and affects the supplies of imports and exports. This affects the reputation of the country internationally and makes the country unstable. For the poor, this makes living miserable and contributes to rising unemployment. And this badly damages the country’s image.

Likewise, unemployment and the energy crisis also lead to time wasting. Employees have to wait for hours to resume their work. Students have to face many issues while studying. Every sector suffers differently. This will break down every activity in the country and damages its severity.

Consequently, basically, every issue has a solution. The lack of dams is one of the main causes of the energy crisis. Thus the government may simply solve this problem by constructing more dams across the nation. Government should build new dams and renovate existing ones while implementing new, cutting-edge technologies. People should support the government in this initiative, and everyone should step forward and contribute what they can. We all know that Pakistan lacks the resources to construct dams.

Additionally, the government should implement laws that are beneficial across the entire country and impose an effective schedule for factories, industries, and other high-consumption sectors. Government should maintain control over electricity theft as well, as thousands of megawatts are stolen. In order to defeat this evil, it will also be helpful to reduce theft and replace the good officers in the industry.

Furthermore, the government needs to adopt new machinery that produces more power faster and current technologies. The present government must function as soon as possible because, if this problem is not addressed, it will get worse before it gets better. The cost of the past government’s incompetence is already being paid by the country.

Last but not least, the government should take action right away to reduce this problem. As the population grows every day and requires power to function, those who cannot afford to meet their essential needs adopt the wrong ways to fulfil their needs in any possible way. Awareness of population control must be prioritized as well.

In conclusion, it may be concluded that the energy crisis has reached a serious level. For Pakistanis from all areas of life, it is an issue. The economy has suffered the greatest setback of all. Long power outages have forced the closure of hundreds of industries. It causes poverty and unemployment. A solution to this issue could make things better. The country’s progress and prosperity can be ensured by its solution. On the other hand, if this issue is not resolved quickly, it will make people’s challenges worse. If the energy situation is not resolved, prices will rise. Determination and great political will are required for the solution. With the help of these two, everything can be controlled. 

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Essay / Paragraph on Energy Crisis in Pakistan

by Sajid | Oct 15, 2020 | 11th English 2020

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Essay on Energy Crisis in Pakistan...

Published by admin on 28th September 2022

Essay on Energy Crisis in Pakistan

It is a fact that Pakistan is the state which is facing problems since its independence and unfortunately failed to find a relevant solution for these problems. One of the major problems of Pakistan is load-shedding, but it has increased for the last two decades. Other Countries of the world are moving towards enlightenment but Pakistan is still in dark. It feels so awkward to hear that Pakistan is an atomic state but couldn’t resolve this issue even in the 21st century.

The major cause of this issue is increasing demand, as the population of the country increasing day by day, it requires more electricity, but the government is failed to fill this gap. According to an estimated calculation published by essay writing service , our country needs 22000-24000 megawatt electricity and this demand is rapidly increasing with time, around 5% per year. Unfortunately, Pakistan is only able to produce not more than 18000-megawatt energy until now. Perhaps, the government claimed to produce more, but the reality is slightly different.

Why Pakistan is not succeeded in resolving this issue? There are several reasons behind it some of them are:

• Rising fuel prices/unavailability of inexpensive fuel:

. There are two sources of electricity, one is natural gas other is imported oil. Oil is always an expensive source for the power producer so they emphasize mainly natural gas, but nowadays they are facing the shortage of natural gas also which decreases the capacity of production. Coal is in abundance in Pakistan but due to the in-expertise, they are not utilizing it correctly. 

• High Electricity Demand:

This is a modern era, we have electronic gadgets all around us, and they are the biggest consumer of electricity. Many of the government building including General Assemblies consume a lot of electricity often do not pay their utility bills.

• Circular Debts:

This problem is not something new in Pakistan; electricity can be stolen anywhere by anyone easily. Although, the subsidy is given by the government to power Supply Company this is not enough for them to recover this major drawback.  At the time 20-30% of electricity is being stolen by the theft and it has become a big challenge to control.

• Lack of formation of new projects:

In the field of technology, Pakistan is lagging behind among most of the other countries of the world. The same issue is with power projects, the government is not interested in information on new projects, which will be an addition to the production. Every elected government mainly focused on a non-development program like a laptop scheme, etc.

Hydropower is one of the most inexpensive sources of producing electricity, but this idea is totally ignored by the current government. In the past, Parvez Musharraf worked on it, but later on, it could not be carried on by the next government. All developed countries including China, America, Germany and even India are producing a huge part of electricity by establishing the hydropower, solar and wind power plant. The government should take initiatives to install these projects in the country; they are cheap, durable and reliable.