energy crisis in pakistan essay for 2nd year

Essay On Energy Crisis In Pakistan (200 & 500 words)

Essay on energy crisis in pakistan (200 words).

Pakistan faces a severe energy crisis due to a lack of resources, poor management, and an inefficient distribution system. The country is heavily dependent on imported oil, which has led to high costs and volatility in energy prices. This has resulted in frequent power outages and load shedding, devastatingly impacting the economy and people’s lives.

The energy crisis has significantly impacted Pakistan’s economy, particularly its manufacturing sector, which has been forced to shut down due to power shortages. As a result, unemployment has increased, and foreign investment has decreased. The energy crisis has also affected the agriculture sector, a major contributor to the country’s economy. Farmers have been unable to irrigate their crops, leading to lower yields and higher food prices.

Pakistan has significant potential for renewable energy sources, such as solar and wind power. However, the government has not invested enough in this area, and the country still relies heavily on fossil fuels. There is also a need for better energy sector management, including improved distribution systems and reduced transmission losses.

In conclusion, the energy crisis in Pakistan is a complex issue that requires a multi-faceted approach to address. The government must invest in renewable energy sources, improve management, and reduce transmission losses. It is essential to address this crisis to support economic growth, create employment opportunities, and improve the lives of Pakistanis.

Essay On Energy Crisis In Pakistan (500 words)

Like many other developing countries, Pakistan is grappling with an acute energy crisis that severely affects its economy, industry, and social development. The country has been facing severe energy shortages for the past decade, resulting in frequent power outages, load shedding, and rising energy costs. The energy crisis in Pakistan is a complex issue with multiple causes and requires a comprehensive strategy to address it.

The energy crisis in Pakistan can be traced back to the 1990s, when the country began to experience a growing demand for energy due to rapid population growth, urbanization, and industrialization. At the same time, there was a lack of investment in the energy sector, resulting in an inadequate supply of electricity, gas, and oil. The government’s failure to address the issue promptly and effectively has exacerbated the situation.

One of the leading causes of the energy crisis in Pakistan is the over-reliance on non-renewable energy sources such as oil and gas. The country has limited domestic reserves of these resources and must rely on imports to meet its energy needs. This has led to a significant increase in energy costs and has made the economy vulnerable to global oil price fluctuations.

Another significant factor contributing to the energy crisis in Pakistan is the inefficient and outdated energy infrastructure. The country’s power generation and distribution system is outdated, and many of the power plants are running on obsolete technology. The transmission and distribution systems are outdated and suffer significant losses, resulting in low efficiency and frequent power outages.

Moreover, the lack of investment in renewable energy sources such as solar, wind, and hydro has exacerbated the energy crisis in Pakistan. The country has enormous potential for renewable energy, especially solar and wind, but there has been a lack of political will and investment in this area. The government must encourage private sector investment in renewable energy to diversify the country’s energy mix and reduce its dependence on non-renewable sources.

The energy crisis in Pakistan has had severe economic and social consequences. The frequent power outages and load shedding have had a detrimental impact on the country’s industry and businesses, resulting in lost productivity and economic growth. The rising energy costs have also made it challenging for businesses to operate profitably, resulting in job losses and economic instability. Moreover, the lack of access to electricity has severely impacted the country’s rural population, making it challenging to access healthcare, education, and other essential services.

To address the energy crisis in Pakistan, the government needs to adopt a comprehensive strategy that includes a mix of short-term and long-term measures. In the short term, the government must invest in upgrading the existing energy infrastructure, including power plants, transmission lines, and distribution systems. The government should also promote energy conservation and efficiency measures, such as incentivizing energy-efficient appliances and adopting renewable energy sources.

In the long term, the government must invest in renewable energy sources such as solar, wind, and hydro. The country has enormous potential for these sources and can significantly reduce its dependence on non-renewable sources. The government must encourage private sector investment in these areas and create a favorable regulatory environment to attract investment.

In conclusion, the energy crisis in Pakistan is a complex issue that requires a comprehensive strategy to address it. The government needs to take immediate steps to upgrade the energy infrastructure, promote energy conservation and efficiency measures, and encourage private sector investment in renewable energy sources. Failure to address the issue will have severe economic and social consequences for the country and its people.

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energy crisis in pakistan essay for 2nd year

Sana Mursleen is a student studying English Literature at Lahore Garrison University (LGU). With her love for writing and humor, she writes essays for Top Study World. Sana is an avid reader and has a passion for history, politics, and social issues.

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 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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Home → Articles → Essay on Energy Crisis in Pakistan

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

Essay on Energy Crisis in Pakistan

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

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Causes of Energy Crisis: A Brief Overview

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

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

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

The Constant Load Shedding

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

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

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

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

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

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

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

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

Accusations Against the World Bank

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

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

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

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

IGCEP Power Plan Under Scrutiny

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

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

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

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

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

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

Prioritizing Action and Evaluation

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

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

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

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

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

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

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

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One Reply to “Essay on Energy Crisis in Pakistan”

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Energy Crisis in Pakistan; Causes, Impacts and Remedies

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

Table of Contents

Introduction

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

Root Causes of Energy Crises in Pakistan

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

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

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

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

Impacts of Energy Crises

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

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

How to Address Energy Crises

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

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

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

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

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What’s at Stake in Pakistan’s Power Crisis

By Noah Berman

February 6, 2023 3:00 pm (EST)

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

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

What caused the January power outages?

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

A street vendor cooks by headlamp as the darkness encroaches on the background.

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

Energy and Climate Security

International Monetary Fund (IMF)

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

What’s at stake if the power outages continue?

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

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

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

What do Pakistan’s struggles mean for other countries?

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

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

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

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

Will an IMF bailout stave off an economic crisis?

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

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

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

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

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

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

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Like many other developing countries, Pakistan has been grappling with a severe energy crisis for several years. The demand for energy continues to surge due to population growth, urbanization, and industrialization, while the supply of conventional energy sources remains inadequate. This energy deficit has led to frequent power outages, hampering economic growth, disrupting daily life, and impeding technological progress. In this context, the adoption of alternative energy sources presents a compelling solution to address Pakistan’s energy crisis. [1] Pakistan’s energy crisis is a long-standing and multifaceted issue that has significantly impeded the country’s economic growth and development. Pakistan witnessed acute energy crisis during the summer months from May-August 2023. The electricity shortfall widened to 7,000 megawatts with demand rising to 28,200 megawatts, while the power supply was 21,200 megawatts. [2]

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Issue Brief on “An Analysis of Turkiye’s Response to the Gaza Crisis”

Issue Brief on “Indian Defence Budget FY 2024-25 – Operational Preparedness and Defence Modernization: Implications for Pakistan”

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E-Paper | August 26, 2024

Average daily gas

700mmcfd shortfall

Off-flexold rural villges

436.2 millionbb 2007 est

30,090 bbl/day 2007 est

NATURAL GAS
ALTERNATIVE ENERGY

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

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

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

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

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

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

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

Chanda oil fields located in Khyber Pakhtunkhwa started oil production.

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

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

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

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

Dakni gas field started commercial production in December 1989.

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

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

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

Union Texas Pakistan discovered an oil field in lower Sindh.

Dhodak gas field was discovered in the province of Punjab.

The commercial production from Toot Oilfields started in 1967.

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

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

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

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Finding the Right Way Forward in Pakistan’s Energy Crisis

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Domestic renewables are the best hedge against global LNG price volatility and supply insecurity.

Finding the Right Way Forward in Pakistan’s Energy Crisis

The ongoing global energy crisis has left countries scrambling for fuel. As wealthy buyers of liquefied natural gas (LNG) offer top dollar for every available cargo, Pakistan faces dire fuel and power shortages with little end in sight.

There will be no easy way forward. Reversing Pakistan’s dependence on imported fossil fuels by accelerating the shift to low-cost domestic renewable energy sources will be crucial for energy security and economic growth. In the meantime, Pakistan needs a coherent LNG procurement strategy that avoids locking in high prices for upcoming decades.

In the aftermath of Russia’s invasion of Ukraine, Europe is buying significantly more volumes of LNG to cut its dependence on Russian gas. But with almost no spare global LNG supply capacity, European buyers have pulled existing cargoes away from developing nations by offering higher prices.

Pakistan is suffering the consequences. In July, state-owned Pakistan LNG Limited (PLL) issued a tender to buy 10 cargoes of LNG through September but did not receive a single bid.

This is the fourth straight tender that went unawarded. In a previous tender, PLL received only one bid from Qatar Energy at a price of $39.80 per million British thermal unit (MMBtu). At this price, a single cargo would cost over $131 million. Pakistan’s government rejected the offer to conserve its dwindling foreign exchange reserves.

The effects have been disastrous. Power cuts are crippling household and commercial activities, while gas rationing to the textile sector has resulted in a loss of $1 billion in export orders . Despite energy conservation efforts, many areas continue to experience load shedding of up to 14 hours , as the generation shortfall reached 8 gigawatts (GW).

Some countries are shielded from extreme LNG price spikes by long-term purchase contracts. But Pakistan sources roughly half of its LNG from spot markets, increasing the country’s exposure to global price volatility.

To mitigate the situation, Pakistan has expressed openness to signing new long-term contracts, with one official claiming the country would go for an unusually long 30-year contract. The contracts will most likely be signed with Qatar and United Arab Emirates.

However, Pakistan’s experience with long-term contracts has been problematic. Term suppliers had defaulted at least 12 times over the past 11 months, most recently in July when Pakistan desperately needed fuel.

Long-term contracts – which are typically tied to a “slope” or a percentage of the Brent crude oil price – are reportedly 75 percent more expensive than a year ago. If Pakistan signed a deal now with a 16-18 percent slope, and assuming current Brent crude prices of $100, a single cargo would cost roughly $55-61 million. At the 11-13 percent slope of Pakistan’s current contracts, meanwhile, a cargo would cost $37.5-44.3 million. Although Brent crude prices will vary, it is clear that Pakistan would risk locking in higher prices by signing new long-term contracts in the current LNG environment.

Moreover, with limited global LNG supply, long-term contracts would likely not start until 2026, when significant new global supply capacity is expected online. Pakistan’s LNG needs are more immediate.

Rather than lock in high prices for the long term, buyers in Pakistan can consider signing shorter five-year contracts with portfolio players. Industry representatives have suggested there is space in the market for shorter contracts. Although shorter terms typically come at a price premium, they may temporarily help alleviate Pakistan’s exposure to extreme spot market volatility.

Short-term contracts have to carry higher penalties in instances of non-delivery to avoid repeated supplier defaults. Coupled with the existing long-term contracts and spot purchases, short-term contracts would diversify the country’s supply portfolio, potentially allowing better price management, supply security, and flexibility.

In the longer term, cutting Pakistan’s dependence on imported fossil fuels altogether is the most affordable solution. Low-cost, domestic renewables like wind and solar can prove to be a crucial hedging mechanism against high, U.S. dollar-denominated fossil fuel prices.

The government is beginning to recognize the unreliability and unaffordability of LNG compared to domestic renewables. Policymakers recently indicated that they would announce a new solar policy geared toward reducing LNG dependence, reducing high energy costs, and improving energy security.

Under the policy, due out August 1, 7-10 GW of residential solar systems would be deployed by the summer of 2023. In addition, the policy would allow the installation of seven utility-scale solar plants at the sites of existing thermal power plants.

This is a major step in the right direction, one that will help reduce gas and LNG demand in the power sector. We also identified other measures in a recent IEEFA report to limit LNG demand, such as reforming gas distribution company revenue regulations to reduce gas leakage, along with energy efficiency incentives.

Ultimately, there will be no one-size-fits-all solution to the current energy crisis, but a portfolio of short to long-term plans is necessary to mitigate Pakistan’s unsustainable reliance on LNG imports.

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The Causes and Consequences of Energy Crisis in Pakistan and Its Solutions

Fahad Farooq
December 15, 2023
CSS Essays , CSS Solved Essays

CSS & PMS Solved Essays | The Causes and Consequences of Energy Crisis in Pakistan and Its Solutions

Fahad Farooq , a Sir Syed Kazim Ali student, has attempted the CSS & PMS essay “The Causes and Consequences of Energy Crisis in Pakistan and Its Solutions” on the given pattern, which Sir Syed Kazim Ali teaches his students. Sir Syed Kazim Ali has been Pakistan’s top English writing and CSS, PMS essay and precis coach with the highest success rate of his students. The essay is uploaded to help other competitive aspirants learn and practice essay writing techniques and patterns to qualify for the essay paper.

1- Introduction 2- Energy crisis in Pakistan: A critical overview

3 – What are the causes of the energy crisis in Pakistan?

Evidence: Pakistan’s economic conditions constrain the construction of power generation plants.
Evidence: Lack of policy formulation and implementation due to the unstable political environment
Evidence: Inadequate transmission and distribution system and overloaded transformers, Report of special committee, Senate of Pakistan 2018
Case in Point: According to a report published by NEPRA 2018, Pakistan’s energy sector currently has about 25% transmission and distribution losses.
✓ Corruption and power theft
Case in Point: Pakistan is ranked 117th among 180 countries in the Corruption Perception Index, 2018 by Transparency International.
Evidence: Kalabagh Dam has not been completed due to inter-provincial conflicts.
Case in Point: Water disputes in Pakistan with India and Afghanistan affect Pakistan’s power sector.
Case in Point: In 2010, a severe flood severely damaged Pakistan’s power sector.
Evidence: Reliance on thermal power plants instead of hydel power plants has significantly increased its average cost.

3- What are the impacts of the energy crisis in Pakistan?

Evidence: Pakistan is suffering from 5 to 12 hours of load shedding per day, which affects the daily routines of students and employees.
Evidence: Due to high reliance on thermal fuel, circular debt and subsidies provided to the energy sector have increased.
Evidence: The energy crisis has made the lives of common people miserable.
Evidence: The unemployment ratio is increasing daily, which is giving birth to other social crimes.
Evidence: The industrial sector has to cut down its production due to prolonged load shedding and rising electricity bills.
Evidence: Due to the extreme energy crisis, foreign direct investment in the industrial sector has decreased.
Evidence: Pakistan has been suffering severe deforestation due to high reliance on thermal sources for power generation
Evidence: The energy crisis has caused extreme angst among the public, resulting in severe demonstrations against the government.

4- What are the pragmatic measures to overcome the energy crisis in Pakistan?

✓ To improve governance and effective implementation of policies
✓ To improve the efficiency of power plants and gradation of transmission infrastructure
✓ To formulate strict laws to control power theft
✓ To utilize renewable sources of energy for power generation instead of fossil fuels
✓ To generate electric power from nuclear power plants
✓ To build new dams for water storage and settle down inter-provincial conflicts

5- Critical Analysis 6- Conclusion

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The energy sector of a country is the foundation of its socio-economic development. Thus, energy security has remained, and still is, the agenda of many developed country’s schemes. However, in developing countries like Pakistan, the energy crisis due to a shortage of energy is the talk of every day. Pakistan has faced operational, managerial, and technical issues in the energy sector for the last two decades. The country has to overcome the crisis to attain socio-economic development in all sectors of society. Bad governance and inadequate planning by incompetent political leaders are the major causes behind the crisis. In addition, electricity losses in transmission lines and consumer power theft significantly burden the country’s economy. This energy shortfall has affected the country’s industrial, agricultural, and economic sectors. As a result, the unemployment, poverty, and social crimes in the society have increased. However, there is nothing in the world that cannot be solved. Pakistan should formulate strict laws and thoroughly implement them to control power theft. Updating the transmission and distribution structure to reduce power losses is essential. Moreover, the government needs to create awareness among the public to use energy-efficient products. In a nutshell, Pakistan’s socio-economic stability is impossible without addressing the issues responsible for the country’s energy crisis. This essay discusses the causes and impacts of Pakistan’s energy crisis and the pragmatic measures to curb the issue.

Currently, Pakistan is suffering from an acute energy crisis. Approximately twenty per cent of the country’s population needs access to electricity. But it does not produce enough energy to meet the demand. There is an electricity shortfall of approximately 8000 megawatts per day; as a result, the population has been facing the haunting effects of load shedding for five to twelve hours per day. This situation reflects the incapability of the previous governments to curb the issue and a need for more implementation of formulated policies in the power sector.

Since every issue has a cause, Pakistan’s poor economic condition is the primary cause of its energy crisis. Huge investments are required to lay the foundation of power projects to attain energy security in the country. Unfortunately, Pakistan has been suffering the worst economic crisis since its inception, due to which the power sector has been neglected. In addition, Pakistan has been facing political instability for decades. According to the Global Economy Watchdog for Political Stability, Pakistan is ranked 192 among 195 countries . In such unstable circumstances, no solid and visionary policy has been formulated to enhance the country’s power generation capacity. As a result, the country’s power sector is facing an acute crisis.

Moreover, most of the projects being used for electricity production are outdated. Due to poor maintenance, these plants operate at an efficiency level much lower than the designed capacity. They consume more fuel and produce less energy; as a result, they tend to increase the circular debt, creating a burden on the federal budget through subsidies. These soaring subsidies have adversely affected the financial health of the economy.

Furthermore, the high loss of electricity in the transmission and distribution system is a significant burden on the country’s energy resources. According to a report published by NEPRA 2018, Pakistan currently has about 25% T&D losses.

Apart from wasting energy, these losses go without payment to the power generation companies, which the government compensates through subsidies. So, these T&D losses significantly drain the country’s economy.

Additionally, corruption in the energy sector and consumer power theft are other significant contributors to the country’s energy crisis. A lack of technology-assisted techniques for stopping power theft has further devastated the situation. Transparency International has ranked Pakistan 117th among 180 countries in the Corruption Perception Index, 2018. Over time, several corruption scandals have been exposed in the power sector, severely affecting its growth and resulting in a high loss to national expenses. In this way, corruption and power theft significantly escalate the country’s energy crisis.

Similarly, inter-provincial conflicts on water sharing in Pakistan have hampered the development of Pakistan’s power sector. Small provinces blame the large ones for not giving their share in water resources. This mistrust has destroyed the understanding among the provinces to cope with the energy crisis. Due to these conflicts, the development of new power stations like the Kalabagh dam could not be possible. Furthermore, Pakistan has also indulged in a water war with its neighbours, India and Afghanistan. Now, India has started building dams on western rivers, and Afghanistan has begun building dams on the Kabul River, which has caused a water shortage for power generation in Pakistan. This has severely affected Pakistan’s power sector.

Another cause of the energy crisis in Pakistan is climate change. Due the phenomenon, heavy rainfalls are becoming very common, which cause floods. These floods damage the country’s electrical power sector every year. For example, the severe flood of 2010 severely damaged Pakistan’s power sector. Due to the lack of dams, this excess water from floods cannot be stored for valuable purposes. Thus, extreme weather patterns due to climate change also contribute to Pakistan’s energy sector disaster.

Lastly, shifting from hydel power plants to thermal power plants has proved another massive drain on the country’s power resources. More reliance on furnace oil to run power plants has made the country more vulnerable to the fluctuation of international oil prices. The current Russia-Ukraine conflict has exposed the vulnerability of various nations, including Pakistan, to oil and gas to meet their energy requirements. In this way, the soaring oil prices in the international markets are badly affecting Pakistan’s energy.

As every crisis comes with some aftereffects, load shedding is considered its most significant effect. This has affected all sectors of society. Due to this, students cannot fully concentrate on their studies, and public and private sector employees need more time in their work. Due to the non-availability of uninterrupted electricity, factories have shifted to other resources like furnace oil and natural gas, resulting in increased production costs. As a result, thousands of employees across the country have been expelled from their jobs. In this way, continuous load shedding has increased the poverty in society.

Due to the lack of solid and versatile policies of the incumbent political leadership, the dependence of power generation on thermal sources instead of hydel energy has increased. This high reliance on thermal fuel has resulted in increased circular debt. The outdated and deteriorated infrastructure of power plants, accompanied by high transmission and distribution losses, has created a massive gap between the supply and demand of electricity. Power plants are consuming more fuel and producing less energy. Moreover, insufficient recovery of bills from consumers has created a massive gap in the costs of generation and payment of recoveries. Instead of increasing the power prices, the government has increased the subsidies provided to the power generation companies. Thus, the energy crisis has significantly burdened the federal budget through subsidies.

The power crisis has made life hell for the majority of the citizens. Frequent load shedding has contributed to the increased unemployment in society. This unpredictable load shedding has caused extreme angst and distress among the public; as a result, various social evils like robbery and street crimes have increased in society. The condition of the youth of the country is especially miserable.

Similarly, the energy crisis has severely affected the industrial and agricultural sectors. They have to cut down their production and lay off thousands of workforce. Factories face early shutdowns, and the employees wait hours to resume work. Consequently, the net output of the industrial sector has decreased. This has resulted in increased prices of fertilizers, pesticides, and other ingredients in the agricultural industry. Moreover, being a water-scarce country, Pakistan’s agricultural sector is highly dependent on the power sector to use underground water for agriculture. Due to frequent shutdowns of electricity and high furnace oil prices, farmers face massive agrarian losses.

Due to the energy crisis, Pakistan is less likely to attract foreign direct investments in industrial sectors. There is a continuous decline in the existing number of industries in Pakistan. Maximum industries have been shifted to foreign countries, where cheap and reliable energy supply is available. Thus, the energy crisis in Pakistan has raised the cost of production.

Pakistan is highly dependent on thermal power plants and has been facing severe deforestation. Due to an unfortunate controversy among the provinces, Pakistan lacks hydel power projects. Besides this, the massive dependency on fossil fuels for electricity production has led to several environmental hazards, such as the emission of GHGs, global warming, and irregular weather patterns. Global warming has been the cause of severe floods in Pakistan for the last two decades, which has badly affected the domestic lives of ordinary people.

The long and often unpredictable hours of load shedding have caused extreme angst among the public, resulting in severe demonstrations against the government. Unfortunately, Pakistan is ranked 192 among 195 countries by the Global economy watchdog for political stability. Due to this political instability, there has yet to be continuance in the formulated policies to overcome the energy crisis in the country.

Every issue has a solution. First, the government should formulate solid laws and thoroughly implement them nationwide. There should be no political involvement in the power sector. The government should mainstream the issue of the energy crisis in the national narrative and try to develop a national consensus on this issue.

Furthermore, the government should focus on increasing the installed power generation capacity. Research centres should be established for prime solutions to power sector problems. The efficiency of the transmission and distribution system should be increased on a priority basis. The government should encourage the distributed generation to reduce transmission and distribution losses.

In addition, technology-assisted techniques must be used to stop power theft. The power sector cannot remain sustainable unless the service cost is fully recovered. The provincial governments and law enforcement agencies should assist the federal government in controlling power theft and the excessive losses in the transmission and distribution system.

Additionally, the country needs to shift from fossil fuels to renewable energy resources for electricity production like wind, hydel, and solar power projects to reduce environmental pollution and resolve the current energy crisis. Pakistan is enriched in hydro-power resources with the potential of 50000 megawatts, which is still untapped. The government should speed up the construction of hydel projects like the Diamer Bhasha Dam and other big projects like Dasu. The country should adopt renewable resources like wind and solar power as soon as possible to shift the trend from fossil fuel generation towards renewable generation.

Moreover, Pakistan should immediately enhance its nuclear power generation as it is cheap and reliable. Pakistan is 6th atomic power in the world but generates only a tiny amount of electrical power from nuclear sources. This will decrease the country’s dependency on foreign technology and imported fuels.

Lastly, being a water-scarce country, Pakistan needs to build more dams to store excess water in the monsoon season and use it in the dry season to run the power plants. For this purpose, the government should immediately settle the inter-provincial conflicts on major power projects, like the Kala Bagh Dam, to include bulk power generation into the national grid and avoid floods. Pakistan should negotiate with India and Afghanistan on critical water disputes as Pakistan’s power sector is highly dependent on the water received from these countries.

The energy sector of Pakistan has been facing an acute crisis for the last two decades due to incumbent political leadership, lack of formulation of solid policies and other technical issues. The situation has hampered Pakistan’s socio-economic development. With a dwindling economy and soaring political instability, the country needs immediate pragmatic steps to curb the issue for the smooth running of all the state’s sectors. If this issue is not resolved on a priority basis, the situation will become worse. In conclusion, the prolonged energy crisis has devastated the national economy. It has slowed down the industrial sector and affected all life sectors. It has caused inflation, unemployment, and poverty in the society. It has also damaged Pakistan’s international image. Multiple reasons behind the crisis, like poor governance, outdated power plants, transmission and distribution losses, power theft, inter-provincial conflicts on water resources and high dependency on thermal sources, need an immediate response from the government. And the adoption of renewable technologies can tackle the issue of outdated plants, reducing power losses, and implementing effective policies.

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Energy crisis in Pakistan

The crisis results from a gap between energy supplies and demand in the country

the writer is a freelancer and a mentor hailing from kandhkot sindh he can be reached at alihassanb 34 gmail com

Energy security and self-sufficiency are fundamental prerequisites for the progress and prosperity of any nation. Given their inextricable link with holistic national development post-industrial revolution, the two promise a bright future for countries. Countries that are self-sufficient in their energy supplies enjoy prosperous status in the world’s comity. As the capacity to do work, energy fuels economic activities and holistically influences the social, political, psychological and developmental aspects of life. The settings where energy is used in a society include households, offices, transportation, manufacturing industries and agriculture sector. The sources of energy supply are renewable and nonrenewable resources. The former comprise fossil fuels — coal, gas and oil — and are costly, limited and hazardous for the environment. The latter, however, are environmentally friendly, cost-effective and inexhaustible due to their natural restorative process. Renewable energy sources include solar, hydro, wind, tidal, geothermal, nuclear and biofuels.

However, the countries that are facing an energy crisis lag far behind in all aspects of their lives. Pakistan is, unfortunately, one of them. Though the genesis of the crisis can be traced back to the 1990s due to a supply-demand imbalance, the past two decades have witnessed serious impacts and manifestations. The crisis results from a gap between energy supplies and demand in the country. The manifestations of the crisis include, but are not limited to, electricity and gas loadshedding, inflated energy prices, industrial closure and downfall, and their implications. For instance, the electricity shortfall stands at around 80000 MW and is likely to increase in the months due to increased demand.

There are many interconnected and overlapping causes behind the crisis in Pakistan. Lack of political will and consistent pragmatic energy policies; economic instability and the lack of technical expertise; excessive reliance on non-renewable and costly fossil fuels (59 per cent of the total energy mix); outdated transmission lines and faulty infrastructure; line losses and power theft; inefficient energy use and its wastage; overpopulation and growing demand; corruption and inefficiency in general and in GENCOS and DISCOS in particular; myopic policy commitment with IPP’s; and circular debt are some of the major contributors to the energy in the country.

The crisis in Pakistan has serious socioeconomic, developmental, psychological and political impacts. These include, but are not limited to, economic instability and industrial downfall; high unemployment and abject poverty; skyrocketing inflation and the exorbitant cost of living; social alienation and suicide; rampant corruption and political instability; lawlessness and a high crime rate; frustrations and psychological ailments.

How can the crisis in Pakistan be addressed? Political will and pragmatic energy policies; switch towards renewable energy and utilisation of indigenous energy resources; resilient energy infrastructure and diversifying energy mix; upgrading grids and overhauling outdated transmission infrastructure; checking power theft and preventing line losses; building small and medium-sized dams and energy preservation; transparency and curbing corruption; and technical and technological education are some of the measures that would go a long way in addressing the issue of the energy crisis in Pakistan. Utilisation of untapped and renewable energy sources with high potential and capacity — wind (50000 MW), solar (40000 MW), hydro (40000 MW), and Thar coal (100000 MW) — besides that of tidal, biofuels and nuclear potential would be a great stride in this regard.

The energy crisis is undoubtedly a serious issue facing Pakistan today. Nevertheless, it is addressable. Political will, sustainable and pragmatic energy policies and checking corruption and line losses, among other steps, would go a long way in helping rid the country of the crisis altogether.

Published in The Express Tribune, March 24 th , 2024.

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Energy Crisis In Pakistan Essay

Energy is essential for the operation and advancement of economies. It has a vital role in the socioeconomic progress of nations as it fuels machinery, illuminates urban areas, and powers vehicles. When an economy experiences a shortage of energy resources, commonly oil, electricity, or other natural resources, an energy crisis occurs. This deficiency profoundly affects the economy by increasing manufacturing costs due to higher expenses in electricity production. The growth in energy demand resulting from industrialization and population expansion has surpassed improvements in energy production.

Experts anticipate a worldwide energy crisis due to the diminishing availability of affordable resources, resulting in higher costs for obtaining essential energy. Consequently, industries are ceasing operations due to insufficient power supply. This issue is projected to impact Pakistan and other countries globally within the next 25 years. Presently, Pakistan is confronted with a substantial electricity crisis, enduring daily power deficits lasting up to 18 hours.

During the summer months, the issue worsens and creates significant difficulties for individuals who do not have generators or UPS systems. In my residence in Karachi, I personally experience up to four hours of power outages daily. Around two years ago, WAPDA admitted its incapacity to meet the current electricity demand. It is important to mention that Pakistan has the world’s seventh largest coal reserves.

These reserves remain untouched as coal mining lacks the necessary technique. Likewise, solar and wind energy possess significant potential for electricity generation. Pakistan possesses only two nuclear plants for electricity generation. What actions is the government taking to guarantee a sustainable supply of energy resources for economic growth? When will the nation acquire this?

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Essay- energy crisis in pakistan.

Contents Foreword 3 Acknowledgment 4 Summary 5 Introduction Importance of energy for the economy Energy crises Pakistan: Power Crisis Feared by 2007 Major Energy Crisis Feared Waste to Energy Is Needed in Pakistan Rising Oil Prices Pakistan Coal Reserve should be explored Energy crisis in Pakistan Wind Power: a solution to Energy Crisis Energy Crisis: serious

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Pakistan’s energy crisis refuses to unwind

Pakistan’s decade-old energy crisis has finally reached a critical juncture, where decisive action is needed with proper implementation of solutions that address the concern while saving the country from going into a current account deficit.

P akistan’s decade-old energy crisis has finally reached a critical juncture, where decisive action is needed with proper implementation of solutions that address the concern while saving the country from going into a current account deficit.

As a developing country, there’s a constant battle between demand and supply challenges. Economic growth, industrial productivity and foreign investments constantly demand more energy. Without investments in renewable energy sources and investments in solar, winds and natural gas plants, coping with demand seems impossible. However, the real question is: are our policymakers capable enough to strategize a plan that aligns future economic growth with the present cascade of problems the country and its citizens are facing?

Since 1994, being caught in a tug-of-war between multiple short-term governments has resulted in economic mismanagement of the energy crisis, leading to 'capacity debt', which has now risen to Rs2.6 trillion. Outdated policies no longer align with current economic conditions, necessitating significant restructuring of tariffs to reflect the actual supply from Independent Power Producers (IPPs).

In normal circumstances, we pay for things we use. In Pakistan’s case, we pay for what we may or may not need in the future. Pakistan has installed a capacity of 45,000MW, while peak demand lies at around 30,000MW in the summer and only 17,000MW in the winter.

High forecast demand and minimally utilized capacity stem from a poorly managed policy framework lacking innovative seasonal tariffs to balance the demand all year round.

The ramifications of the inefficiently designed power infrastructure burden local consumers. The constant change in the climate and the increasing population demand more electricity, but purchasing power issues have made it impossible for people to cope with these increases in tariffs. The extreme devaluation of the rupee and skyrocketing inflation feeds further into the problem.

This leads to power theft and illegal meter tampering commercially and in households, which only adds to the loss of revenue. Not only consumers, but utility companies have also notched up their internal corruption becoming unreliable and extremely unaffordable. The FIA recently found the Lahore Electrical Supply Company guilty of overbilling of up to 830 million units. This exacerbates the sector's reputation for corruption. Decision-makers should prioritize addressing these challenges and rigorously scrutinize such illegal practices that impose an additional 20-25 per cent cost on consumer bills. Addressing these issues could significantly alleviate consumer burdens and potentially reduce power theft.

The current fall in industrial activity due to heavy tariffs on imports, lack of flexibility on trade and most importantly, the stagnation in technology and inadequate use of R&D has led to disappointing numbers. Pakistan’s prized and protected possession, the textile industry, has threatened to shut down over the soaring energy costs. While bigger groups might survive the storm, smaller market players are on the brink of shutting down. This significantly harms the country’s exports and increases import reliance, worsening devaluation and trade deficits. The slow development has led to energy demand predictions falling short of reality. Rising power tariffs and sluggish technological advancements are major contributors to reduced industrial activity.

Questions are raised over the Ministry of Energy (Power) and the National Electric Power Regulatory Authority’s (Nepra) responsibility in this emergency. Are they capable enough to find solutions to the crisis without bleeding the consumers out? An expedited decision-making process with reliable accountability mechanisms is crucial at this hour. Properly defined roles of these stakeholders with a centralized regulatory framework seems to be necessary at this point. Steps need to be taken on making the process more efficient by giving DISCOs more independence and more involvement in the decision-making processes. These redundant systems require a comprehensive overhaul without delay.

It all comes down to the sheer lack of political will of governments that has led to this complex conundrum. Unstable policies and irrational economic goals have made affordability for the common population an unachievable goal. Now that the government has tightened its belt in the recent budget courtesy the IMF anvil, it is imperative that long-term solutions to these challenges are brought on the table by IMF as well to get the government to think of out of the box solutions.

This constant blame game and dereliction of duty has historically affected the people of Pakistan. Over the years, governments have failed to find solutions to the said problem, not trying to renegotiate terms and conditions in accordance with the economic conditions at that point. Be it democratic governments or military rule, the incompetence of policymakers is inexcusable and paints the perfect picture of how the ruling elite are motivated by self-interest rather than the duty of serving their nation and its people.

The writer is a student of economics and political science at the Institute of Business Administration, karachi. She can be reached at: [email protected]

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

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

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