energy crisis in pakistan essay quotations

Commentary from the Energy Security Program

Pakistan's energy crisis from conundrum to catastrophe.

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

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

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

POLICY IMPLICATIONS

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

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

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

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

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

Pakistan’s Energy Crisis: From Conundrum to Catastrophe?

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

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

Origins and Nature of the Current Crisis

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

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

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

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

A Lack of Strategy and Political Will

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

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

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

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

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

Scenarios for the Future

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

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

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

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

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

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

The Clock Is Ticking

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

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

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

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

Recommendations and Conclusions

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

• national security

Energy Crisis in Pakistan: Causes, Ramifications, and Suggestions

• Areeba Fatima
• December 15, 2023
• CSS Essays , CSS Solved Essays

CSS and PMS Solved Essays | Energy Crisis in Pakistan: Causes, Ramifications, and Suggestions

Areeba Fatima , a Sir Syed Kazim Ali student, has attempted the CSS essay “ Energy Crisis in Pakistan: Causes, Ramifications, and Suggestions ” 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 profile of Pakistan

• ✓According to the National Electric Power Regulatory Authority’s (NEPRA) 2021 yearly report, Pakistan’s total installed power generation capacity is 39772 MW.

 3-Overview of current situation of energy crisis in Pakistan 

• ✓7-8 hours of load shedding
• ✓Shortage of about 8,500 megawatts (MW)

4-Repercussions of energy crisis on Pakistan

• ✓ Lowering economic growth
• Case in point: According to some estimates, energy shortages have cost the country up to 4% of GDP over the past few years.
• ✓ Rising spike of unemployment
• Case in point: According to the International Monetary Fund, the unemployment ratio of Pakistan has increased to 6.5 per cent in the fiscal year 2023.
• ✓ Increasing load shedding 
• Case in point: Electricity shortfalls reached a peak of 8,500 megawatts (MW)—more than 40% of national demand.
• ✓ Reducing foreign investment
• Case in point: According to the State Bank of Pakistan, Foreign Direct Investment (FDI) in 2023 experienced a 25 % decline compared to the previous year
• ✓ Increasing dependence on imports
• Case in point : According to the Pakistan’s ministry of energy and the Oil and Gas Regulatory Authority, energy-deficit Pakistan imports approximately 430,000 metric ton (mt) of motor gasoline, 200,000 mt diesel and 650,000 mt crude oil at a cost of $1.3 billion/month

5- Root causes behind the energy crisis in Pakistan

• ✓ Prevailing governance crisis
• Case in point: According to the World Bank, governance crisis is the third most significant factor responsible for Pakistan’s energy crisis. 
• ✓ Burgeoning circular debt
• Case in point: According to the National Bureau of Asian Research (NBR), the circular debt of Pakistan has approached a whopping $4.5 billion.
• ✓ Increasing transmission loses
• Case in point: According to the current estimates, there is about 45 per cent transmission and distribution loss of electricity in Pakistan.
• ✓ Escalating power theft
• Case in point: According to the government estimates, electricity theft cost the country 500 billion Pakistani rupees over the past 15 months.
• ✓ Soaring fuel shortages
• Case in point: According to the Oil Companies Advisory Council (OCAC), delays in the opening of LCs will lead to a fuel shortage in Pakistan and it can face severe liquidity issues in future.

6- Countering measures to control the energy crisis of Pakistan  

• ✓To introduce governance reforms for the maintenance of energy sector 
• ✓To introduce streamline payment system to monitor circular debt
• ✓To restructure transmission system to mitigate loss
• ✓To shift from non-renewable energy resources to renewable one
• ✓To reduce power theft through structural reforms
• ✓To increase energy conservation by promoting energy efficient appliances

7-Critical analysis

8-Conclusion

A country’s energy sector is indubitably a hub that fuels its social growth and economic development. However, the energy crisis- a multifaceted problem- has become an anathema for developing countries around the globe, robbing their socio-economic peace. Sad to relate, Pakistan, a fiscally fragile country, has also faced an energy shortfall over the last twenty years due to the failure of government policies. Sadly, the overarching energy crisis has pushed the country into a swamp of issues, such as unemployment, load shedding, and decelerated economic growth. All these problems are deeply rooted in governance shortfall, burgeoning circular debt, archaic methods of energy transformation, and lack of integrated energy policies. Thus, the government and policymakers need to adopt sensible and pragmatic steps to construct the broader picture of the energy sector. For instance, Pakistan should better diversify its energy mix, restructure transmission systems, and introduce sustainable technology to monitor loss. Furthermore, renewable energy sources, like wind turbines and hydropower, can save the country from falling into the pits of energy doom. This essay briefly discusses the overarching impacts of the energy crisis and its leading causes and sheds light on remedial measures to meet the challenge.

      Understanding the importance of energy for a country, it is considered the jugular vein of economic development of a country as it is widely utilized for production and development in both industrial and agricultural sectors.  According to the National Electric Power Regulatory Authority’s (NEPRA) 2021 yearly report, Pakistan’s total installed power generation capacity is 39772 MW, where 63% of energy comes from thermal (fossil fuels), 25% from hydro, and 5.4% from renewable (Wind, Solar and Biomass) and 6.5% from nuclear energy resources.  The report shows the importance of energy for the growth and progression of the country. Due to this, the government has always focused on broadening its fiscal capacity to provide subsidies necessary to supply electricity to the citizens at a price that consumers can afford, which is essential for the well-being of society.  

      At present,  thelingering energy crisis has pushed Pakistan into the vortex of socio-economic evils. The country’s generating capacity falls below demand, and its available domestic energy supplies are dwindling, making it unable to meet burgeoning energy demands. Moreover, Russia-Ukraine conflict has dented the energy crisis in Pakistan, wildly inflating the supply of crude oil and gas from Russia.  According to the Sustainable Development Policy Institute (SDPI), the war has directly contributed 8-9 per cent to the current inflation rate in Pakistan as the prices of oil commodities shoot up in the global market.  Furthermore, 7-8 hours of load shedding in the country, the substantially inflated energy import bill, and the increased cost of production have triggered acute inflationary pressure on the country.

     Furthermore, the aftereffects of the energy crisis are harrowing and have impacted the country’s citizens in every walk of life. To elaborate, the dismal state of Pakistan’s energy crisis has curbed economic development, pushing the country into an economic decline. Moreover, the non-availability of coal, oil, and gas has also severely affected agricultural productivity, which has a significant share in its Gross Domestic Product (GDP).  A report states, “The energy shortages in the country have cost it up to 4% of GDP over the past few years . ” Due to the energy shock, production costs have increased while production capacity has decreased, causing Pakistan to face the lowest ebb of economic growth. 

      Moving ahead, the energy crisis has also stipulated the closure of hundreds of factories, including more than fifteen hundred alone in the industrial hub province of Punjab. It has paralyzed production and exacerbated unemployment. To illustrate, unemployment is a structural issue which remains a significant hindrance to inclusive growth in the country . Additionally, it imperils much-needed investments in development and infrastructure.  According to the International Monetary Fund, Pakistan’s unemployment ratio has increased to 6.5 per cent in the fiscal year 2023.  Thus, it depicts that the energy crisis has become one of the gravest challenges for employment opportunities in the country.

      In the same way, unannounced load-shedding has discouraged the industrialists and decreased the country’s production ratio, causing a severe setback to the rate of exports.  Electricity shortfalls peaked at 8,500 megawatts (MW)—more than 40% of national demand.  Moreover,there are 7-8 hours of load shedding in homes and 1-2 hours of load-shedding in Pakistan’s industries. The cottage industry has also fallen victim to the uneven electricity schedules. In this way, the country has considerably constrained the flight of foreign capital. For this reason, Pakistan is facing an exacerbated export loss, which, in turn, makes it an economically free country. 

      Further, for a country suffering from the malaise of the energy crisis, Foreign Direct Investment is a blessing in disguise that creates more job opportunities and increases competition in the market. Unfortunately, Pakistan does not fall in the bracket of these countries, as international investors are discouraged by the lack of electricity and other infrastructure.  According to the State Bank of Pakistan, Foreign Direct Investment (FDI) in 2023 experienced a 25 per cent decline as compared to the last year.  It indicates a significant reduction in international investment, reducing the country’s capital inflow. Thus, a rising spike in the energy crisis has caused Pakistan’s foreign direct investment to decline. 

      Similarly, increasing fuel import demand has been the bone of contention for the country’s economy due to the burgeoning energy crisis.Pakistan has to import high-priced petroleum products, oil, coal, and gas and pay import taxes, pushing it into an economic doom . According to the Pakistan’s Ministry of Energy and the Oil and Gas Regulatory Authority, energy-deficit Pakistan imports approximately 430,000 metric tons of motor gasoline, 200,000 metric tons of diesel, and 650,000 metric tons of crude oil at a monthly cost of $1.3 billion.  Ironically, the energy dilemma has increased Pakistan’s import dependence, pushing it into an economic crisis. 

      Since every problem has a cause, various factors have been responsible for the energy crisis in Pakistan. In particular, governance shortfalls are a crucial challenge for the power sector. As Pakistan’s energy policies come under the purview of several government ministries and agencies. However, coordination among all stakeholders is lacking, clear lines of authority are absent, and energy policies are partially implemented, making Pakistan vulnerable to energy disparity.  According to the World Bank, the governance crisis is the third most significant factor responsible for Pakistan’s energy crisis.  The energy sector in Pakistan is at the mercy of bureaucratic interests and ministerial benefits, creating a looming risk of energy recession. 

      Going down the ladder, circular debtis also a significant contributor to the vicious cycle of energy crisis. Subsidies and tariff disparities have been the primary reasons behind the cascade of circular debt. The subsidies’ payment went unpaid, making energy companies unable to pay fuel suppliers, curtailing the fuel supply and reducing generating capacity. Briefly, the revenue cost mismatch has pushed Pakistan into circular debt.  According to the National Bureau of Asian Research (NBR), Pakistan’s circular debt has reached $4.5 billion.  The government’s efforts to shield citizens from soaring expenses have inadvertently strained the financial health of Pakistan’s energy sector. 

      Likewise, the operational bottleneck of transmission loss, theft, and archaic infrastructure has also challenged the energy sector. Transmission lines connect generation plants and substations in the power sector, and there is a significant loss in energy before it reaches consumers owing to outdated infrastructure and poor technology.  According to the current estimates, there is about 45 per cent transmission and distribution loss of electricity in Pakistan.  These inefficiencies inflate the cost of electricity production, which can’t be met through consumers’ taxes and tariffs. Due to these inept transmission systems and transmission losses, Pakistan faces an energy dilemma.

      Similarly, another factor serving as the bottleneck to Pakistan’s energy security is uncontrolled and mushrooming power theft. Moreover, illegal power theft continues to plague the nation, with up to 17 hours of load shedding daily, creating chaos and dissatisfaction nationwide.  According to government estimates, electricity theft has cost the country 500 billion Pakistani rupees over the past 15 months.  Thus, power theft, such as meter tampering, physical destruction of energy meters, and illegal connection, has badly undermined Pakistan’s energy security.

      Lastly, the soaring fuel shortage due to high prices has also rubbed salt in Pakistan’s energy wounds. Moreover, the State Bank of Pakistan (SBP) has stopped financing and facilitating import payments due to the depletion of foreign exchange reserves.  According to the Oil Companies Advisory Council (OCAC), delays in opening LCs will lead to a fuel shortage in Pakistan, and the country can face severe liquidity issues in the future.  Pakistan meets one-third of its energy demand using imported natural gas, and the delay in its import can cause severe setbacks to the energy sector. Hence, fuel shortages in the country have inflamed the energy crisis,which makes it reel behind energy security.

      Although the energy crisis has overshadowed all other concerns, it is not an issue without a solution. Pakistan can overcome the malice of the energy crisis by adopting holistic and integrated measures. In other words, a better-coordinated energy sector can be attained by consolidating the country’s many energy-related institutions into a single ministry. Moreover, governance reforms and privatization can also help mitigate the energy crisis. For instance,  Norway- a politically stabilized country- has a sound governance system that ensures its energy security in the region, making it economically stabilized.  Pakistan can also meet rising energy demands by avoiding bureaucratic hurdles and providing governance reforms.

      Moreover, implementing streamlined payment systems can significantly alleviate the circular debt. The government should also enforce penalties for payment defaults that can release its debt burden and prevent the domino effect of non-payments throughout the supply chain.  Russia has an estimated low level of national debt, ranking it among the economic first-world powers.  Pakistan should also focus on transparent and efficient regulatory mechanisms to prevent the escalation of the national debt. 

      Next, there is a dire need to update transmission lines and infrastructure to reduce energy losses during transmission. It can be done by using higher transmission voltages and increasing the wire sizes of transmission lines. However, it requires huge investment to increase the efficiency of transmission lines to reduce operational inefficiencies. However, once the transmission loss is cured, it will help the country mitigate transmission and distribution losses in the long term. For this reason, Pakistan has to get support from developed countries.  Pakistan has signed a project with Iran to lay the transmission lines from the Pakistan-Iran border up to Quetta.  Iran has shown its willingness to provide USD 900 million for the project. 

      Similarly, Pakistan should swiftly shift from expensive oil and gas power plants towards cheap and renewable energy resources. Using renewable energy resources- wind turbines, solar energy, and hydropower- can mitigate the energy production cost . China is the global renewable energy leader, harnessing nearly half of the world’s total operating wind and solar capacity . It has diversified the country’s energy mix and reduced its dependence on energy fuels, boosting economic development. Thus, energy costs can be mitigated by replacing energy resources, and Pakistan can escape the energy dilemma.

      Besides, immediate action and reforms are imperative to rectify the illegal power theft and safeguard the nation’s resources. To mitigate the crime, Pakistan should introduce a more advanced metering system with improved efficiency and modern infrastructure. Moreover, there is a need to exhibit an unyielding stance against power theft . In the United States of America, punishment for electricity theft can attract a fine of $150,000 and five years of imprisonment.  Therefore, Pakistan should also take robust and punitive measures to send a strong message to thieves and curb the menace. 

      Finally, Pakistan should also take holistic measures for energy conservation to mitigate the energy crisis. Using energy-efficient appliances and buildings, turning off appliances when not in use, and harnessing renewable energy resources can help Pakistan guard against the shocks of the energy crisis.  The   Netherlands, a European country, has imposed high taxes and tariffs on electricity and natural gas that made citizens reduce energy usage and conserve more energy for a better future.  Thus, it is crucial to recognize that saving energy is the most significant catalyst for minimizing the energy crisis.

      In a critical overview, energy is considered the foundation stone of the economic development of a country, and the energy crisis deprives the government of a financial future. It has also halted Pakistan’s socio-economic development owing to a lack of integrated national policies, good governance, and modern infrastructure. Consequently, the country faces a cascade of circular debt, increased inflation, and economic disparity. In brief, the energy crisis has made Pakistan march towards economic doom and threat of default. 

      In conclusion, the energy crisis has become a pressing issue for Pakistan. It has robbed millions of a bright future and placed the country in the economic doldrums. It is the need of the hour to meet the burgeoning energy demands, which can stimulate socio-economic growth and development. Moreover, importing clean coal, cheaper than imported oil and gas, can also help mitigate the overarching energy crisis. Henceforth, Pakistan can ensure its energy security by exploring alternative energy sources and addressing governance issues.   

CSS Solved Past Papers’ Essays

Looking for the last ten years of CSS and PMS Solved Essays and want to know how Sir Kazim’s students write and score the highest marks in the essays’ papers? Then, click on the CSS Solved Essays to start reading them. CSS Solved Essays

CSS 2022 Solved Essays

Are you searching for CSS 2022 solved essays by Sir Syed Kazim Ali’s students? Click on any of the topics to start reading the solved essays.

CSS Solved General Science & Ability Past Papers

Want to read the last ten years’ General Science & Ability Solved Past Papers to learn how to attempt them and to score high? Let’s click on the link below to read them all freely. All past papers have been solved by  Miss Iqra Ali  &  Dr Nishat Baloch , Pakistan’s top CSS GSA coach having the highest score of their students. General Science & Ability Solved Past Papers

Articles Might Interest You!

The following are some of the most important articles for CSS and PMS aspirants. Click on any to start reading.

Recent Posts

Top Categories

Cssprepforum, education company.

cssprepforum.com

Welcome to Cssprepforum, Pakistan’s largest learning management system (LMS) with millions of questions along with their logical explanations educating millions of learners, students, aspirants, teachers, professors, and parents preparing for a successful future. 

Founder:   Syed Kazim Ali Founded:  2020 Phone: +92-332-6105-842 +92-300-6322-446 Email:  [email protected] Students Served:  10 Million Daily Learners:  50,000 Offered Courses: Visit Courses  

More Courses

Basic English Grammar and Writing Course

Extensive English Essay & Precis Course for CSS and PMS

CSS English Essay and Precis Crash Course for 2023

Subscribe to our mailing list to receives daily updates direct to your inbox.

• CSS Solved Essays
• CSS Solved GSA
• CSS Solved PA
• CSS Solved Islamiat
• Current Affairs
• All Courses
• Writers Club
• All Authors
• All Members
• All Teachers
• Become an Author
• Who is Sir Syed Kazim Ali?
• Privacy Policy

CssPrepForum is Pakistan’s largest and greatest platform for CSS, PMS, FPSC, PPSC, SPSC, KPPSC, AJKPSC, BPSC, GBPSC, NTS, and other One Paper 100 Marks MCQs exams’ students. It has become Pakistan’s most trusted website among CSS, PMS students for their exams’ preparation because of its high-quality preparation material.

@ 2023 Cssprepforum. All RightsReserved.

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.

You may also like these:

• View other Relevant Essay Topics
• CSS Guide for Beginners for 2022
• PMS Guide: Syllabus, Paper Pattern Compulsory & Optional Subjects
• CSS Past Paper Subject Wise 
• LLB Past Papers

I am interested in writing content for educational purpose.

Most relevant ▼

• Essay on “Innovations are Never-ending Headways” for CSS, PMS
• Essay on “Single National Curriculum Pave the Way for the Desired Ideological Integration in Pakistan Society” for CSS, PMS
• Essay on “Single National Curriculum Paving the Way for the desired ideological integration in Pakistan Society” for CSS, PMS
• Essay on “The cost of inaction is greater than the cost of action” for CSS, PMS
• Essay on “Inflation – A Result of Poor Economic Policies or a Part of Global Economic Woes” for CSS, PMS
• Essay on “Democracy without Justice is Tyranny” for CSS, PMS
• Essay on “Man is Born Free but Everywhere he is in Chains” for CSS, PMS
• Essay on “Power Corrupts: Absolute Power Corrupts Absolutely” for CSS and PMS
• Essay on the “Role of Social Media in the Modern World” for CSS and PMS
• Essay on “Terrorism and its Socioeconomic Implications” for CSS, and PMS

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

Related Posts

The Mohatta Palace – Ultimate Guide & Things to Know

• December 15, 2023

77 Girls DP Images to Personalize Your Presence

• October 21, 2023

Role of agriculture in the economic development of Pakistan

• April 22, 2023

Rosans Islamic School Lahore: Fee, Admission, A Legacy of Academic Excellence and Islamic Values

• March 12, 2023

Leave a Reply Cancel Reply

Your email address will not be published. Required fields are marked *

Name  *

Email  *

Add Comment  *

Save my name, email, and website in this browser for the next time I comment.

Post Comment

Trending now

• Welcome to Pakistan

How to solve Pakistan’s energy crisis

The world is confronted with a challenge to cut emissions at a swift rate to ensure net zero targets are met. In the meantime, countries around the world are scrambling to attain a clean energy profile while also guaranteeing security of supply and avoiding any unwanted socio-economic fallouts. The challenge is a wholly distinct one depending on the country under examination.

In the case of Britain and much of the developed world, industrialization commenced over two centuries ago. Shortly after James Watt patented the steam engine in 1769, coal was used to make iron and power ships, locomotives, and other machines. Coal became the backbone of the British Empire that extracted wealth from around the world and left behind economies that were less than a shadow of the then industrialized world. Those same economies, most of whom still find themselves in the category of developing nations, are now faced with a monumental task. They must grow their economies, pull populations out of poverty and upscale their inchoate industries while being held accountable for prolonged dependence on fossil fuels and its effects on the planet. This is the predicament that we find ourselves in today. In devising a long term strategy, Pakistan will have to reconcile three main aspects of its energy profile: It must have a generation mix that is highly indigenised; has low carbon emission, and; is able to support an ecosystem that allows for practical grid load management.

At present, Pakistan imports a third of its energy resources and ranks among the lowest (99 out of 110) in energy security according to the World Energy Council. The recently published Indicative Generation Capacity Expansion Plan (IGCEP) 2021-2030 has outlined plans to expand hydro as well as solar and wind generation so that it accounts for 60% of Pakistan’s energy generation by 2030. The rest of the demand is expected to be fulfilled by local and imported coal and RLNG among other sources. However, even if these targets are met, imported coal and RLNG will still account for around 24% of installed capacity in 2030. Continued dependence on imported fuels is set to remain a burden on the country’s foreign exchange reserves and expose the economy to sudden changes in fuel prices spurred by political developments elsewhere. In a world that is weaning off coal, it is also an added blot on Pakistan’s carbon footprint. Emissions intensity in the power sector currently stands at 353 g-CO 2 /kWh and will decrease to 200 g-CO 2 /kWh according to IGCEP calculations. Although this may seem encouraging, countries like the United Kingdom have set targets three times lower than IGCEP’s best case scenarios. Furthermore, it is worth remembering that Pakistan lags behind the rest of the world in electrification, particularly in the electric vehicles space, and will eventually need to close this emissions gap if it wants to approach net zero. Given the ongoing capacity payments crisis on existing thermal power plants and the dwindling costs of renewable energy and battery storage, the need of the hour is certainly not an expansion of coal-fired generation.

The government’s primary focus at this juncture is on providing cheap electricity to the population and overcoming problems like load shedding and capacity payments on existing thermal plants. However, the country still requires a strategy to rid itself of dependence on fossil fuels in the years after 2030 and adopt a well-grounded plan for grid stability and load management. Large scale problems like this rarely have silver bullet solutions but a hitherto unexplored area of interest that may offer profound support is geothermal power: Renewable heat energy extracted from deep underneath the Earth’s surface. Geothermal plants have negligible emissions when compared to coal-fired power plants and also have longer lifespans and lower operating costs.

Several countries have managed to veritably grow their economies in the post-war years. However, few have managed to do it in a thoroughly sustainable manner. A country that rarely comes to mind in such discussions is Iceland, once amongst the poorest countries in Europe. Rather than being pushed into an import-driven energy policy, Iceland pioneered geothermal power generation in a bid to become self-sufficient. As it turned out, lying on a fault line meant that the country was blessed with abundant geothermal energy reserves. Eventually, geothermal generation reached levels so high, and energy became so cheap, that the Icelandic people were able to bathe in outdoor heated swimming pools all year round, grow crops and farm fish never before seen on the island and develop thriving energy intensive industries such as Aluminium production which now accounts for 40% of its export. Since then, developing countries like Indonesia, Philippines, Turkey, and Kenya have been inspired by Iceland’s model and built capacities between 0.9-2 GW.

For decades, we Pakistanis have lamented the fault lines beneath our feet and have had to bear the tectonic tragedies that emanate from it. Why not seek to reverse the curse of these geological fractures and exploit the clean energy that their indelible presence may offer? There are few estimates of exactly how much geothermal power can be generated in Pakistan. The few estimates that have been floated are in the staggering range of 10 GW or more – maximum total electricity demand in Pakistan in 2020 was 25 GW. Studies have cited particularly large reserves in Gilgit Baltistan and Balochistan. The use of geothermal energy for heating and cooking applications would also mean less pressure on the economy to rapidly electrify these sectors of consumption. Pakistan is one of the 46 member states of the Global Geothermal Alliance, and yet the lack of government interest in this field is striking. Geothermal energy does not feature in any recent policy document of the IGCEP, Alternative Energy Development Board (AEDB), National Transmission & Dispatch Center (NTDC) or Ministry of Energy. Perhaps the high capital costs of setting up a geothermal power plant is seen as a glaring deterrent. However, once operational, geothermal power plants are cheap to maintain and offer inexpensive electricity, as they do not require fuel and are always running. Hence, unlike most renewable sources, it is not intermittent and has high capacity factors.

Home grown geothermal power has the potential to give the country a much needed boost in fulfilling rising energy demands while limiting emissions and adhering to international commitments. In addition, the economy will call upon a more indigenised energy supply, thereby reaping the strategic benefits of no longer being hostage to capricious contingencies associated with imported fuels. In due course, these measures will also make electricity more affordable for the masses.

The writer is a student at the University of Edinburgh majoring in Mechanical Engineering and Renewable Energy. He is also the President of the Edinburgh University Energy and Sustainability Society. He can be contacted at [email protected] or @AndrabiRaafey on Twitter.

More by this writer

The past, present and future of Gilgit-Baltistan

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ

• Entertainment News
• Life & Style
• Prayer Timing Pakistan
• Weather Forecast Pakistan
• Karachi Weather
• Lahore Weather
• Islamabad Weather
• Online Advertising
• Subscribe to the Paper
• Style Guide
• Privacy Policy
• Code of ethics

This material may not be published, broadcast, rewritten, redistributed or derived from. Unless otherwise stated, all content is copyrighted © 2024 The Express Tribune.

• T20 World Cup 2024 -->
• Elections-2024 -->
• Fact Check -->
• Archives -->
• Azad Jammu Kashmir
• Balochistan
• Khyber-Pakhtunkhwa
• Gilgit-Baltistan
• Latest News -->
• SMARTPHONES
• AFGHANISTAN
• MIDDLE EAST
• AWAM KI AWAZ
• BLACK & WHITE WITH HASSAN NISAR
• DO TOK BAAT
• DUAEIN QURAN KI
• GAME SET MATCH
• MERAY SAWAAL
• NADEEM MALIK
• QUTB ONLINE

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

Stay Connected, Stay Informed - Follow SamaaTV on Whatsapp for Real-time Updates!

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

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

Ballooning circular debt

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

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

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

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

Reliance on coal

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

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

Skewed priorities

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

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

Beacon of Hope

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

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

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

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

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

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

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

Recommended

Govt announces massive reduction in petrol, diesel prices

Constitutional amendment: Parliament sessions postponed till Monday after long delay

'Ali Amin Gandapur is mentally unstable', Marri schools KP CM

Related stories.

What Kamala Harris and Donald Trump offer for US economy?

Who's leading after Harris and Trump's latest debate?

Why swing states matter in US presidential elections?

No comments yet.

• --> --> ADVERTISEMENT -->

SAMAA TV Social Accounts

Modal content goes here.

Connect, Engage, Stay Informed! Join Our Social Media Platforms For all the Latest Updates

• Privacy Policy
• Our Authors
• Subscribe Us
• Google Plus

Essay Outline: Energy Crisis in Pakistan: Consequences and Recommendations

Table of Contents

1. Introduction

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

2. Pakistan’s Energy Scenario

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

3. Sources of energy Procurement in Pakistan

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

Check Also:  Essay Outline: Impacts of Climate Change on Pakistan as One of the Worst Hit Regions

4. Issues Faced by Energy Sector

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

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

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

4.4 Cost Issues a) Unaffordable and unsustainable energy

Check Also:  Essay Outline: Disturbed Borders Suggest Unending Wars and Threats to Human Lives

5. Consequences of Energy Crisis

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

Check Also:  Essay Outline: Economic Crisis in Pakistan: Challenges and Prospects

6. Recommendations

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

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

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

Check Also:  Essay Outline | Flaws in Our Education System are Causing Some of Our Failures

About the author

KIPS CSS Network

You may also like.

Essay Outline: Electoral Reforms in Pakistan:...

Health for All | Essay Outline for CSS PMS

Exploring the Economic Potential of BRICS Countries:...

Art and Morality Essay Outline

Instruction in Youth is Like Engraving in Stone |...

Public Office is a Public Trust | Complete CSS Essay

Leave a comment x.

Error in downloading

[…] Check Also: Essay Outline: Energy Crisis in Pakistan: Consequences and Recommendations […]

• Introduction
• Director General
• About the Journal
• Aim & Scope of the Journal
• Editorial Team
• Editorial Advisory Board & Editorial Board
• Journal’s Archive
• Review and Publication Guidelines
• Ethical Guidelines
• Plagiarism Guidelines
• Indexing & Abstracting
• Call for Papers
• Issue Briefs
• Special Guest Articles
• Tuesday Dialogue
• Conference Reports
• Combating Corona
• Islamabad Papers
• Young ISSI Professionals Corner
• Annual Reports
• Vision & Functions
• Advisory Board – China Pakistan Study Centre (CPSC)
• Pivot Magazine
• CPSC Monitor
• ACDC Vision
• ACDC Functions
• News & Views
• ISC Functions
• ISC Monitor
• CAMEA Vision
• CAMEA Functions
• CAMEA Bulletin
• CSP Functions
• ISSI Library
• HEC Digital Library
• Events Archive
• Upcoming Events
• Press Releases

Book Launch on “CHEENI SAQAFAT KAY TABINDA NUQOOSH”

Thought Leaders Forum on “Buddhist Heritage of Pakistan: A Bridge to…

Seminar on “Unlocking the Potential of Blue Economy and Pakistan’s National…

Book Launch “Return of the Taliban: International & Regional Perspectives”

Press Release – ISSI hosts think-tank dialogue with Chinese Delegation on…

Press Release – ISSI hosts Seminar on “Artificial Intelligence and National…

پریس ریلیز: آئی ایس ایس آئی نے یوم دفاع کی یاد…

Press Release – ISSI Commemorates Defence Day

پریس ریلیز : آئی ایس ایس آئی اور نیشنل انسٹی ٹیوٹ…

• ISSI Publications Articles

Issue Brief on “Pakistan’s Energy Crisis: The Need for a Transition to Alternate Energy”

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]

RELATED ARTICLES MORE FROM AUTHOR

Issue Brief on “Modi’s Ukraine Visit: Strategic Autonomy or a Thinly Veiled Diplomatic Charade?”

Issue Brief on “India Nuclear Black Market”

Issue Brief on “Deadly Heatwaves in Pakistan and the Role of Urban Planning”

Recent publications.

Strategic Studies (Vol. 44, Summer 2024, No. 1)

Strategic Studies (Vol. 43, Winter 2023, No. 2)

Strategic Studies (Vol. 43, Summer 2023, No. 1)

Strategic Studies (Vol. 42, Winter 2022, No. 2)

Strategic Studies (Vol. 42, Summer 2022, No. 1)

Essay on Energy Crisis PDF (200 & 500 Words)

Pakistan has abundant natural resources that can support and boost its economy. However, these resources have been poorly managed and neglected by the authorities. This has led to various crises and challenges for the country. The leaders and policymakers of Pakistan seem to be unaware or indifferent to these issues.

This is a serious problem for a developing country like Pakistan, which is already facing a fragile economy. Pakistan has to deal with many issues in different domains, such as social, economic and political. These issues have been ignored by the leaders for a long time. They need to take urgent and effective actions to solve and address these issues. One of the most pressing issues is the energy crisis, which has been unresolved for many years.

Pakistan is suffering from a severe energy crisis. It has been reported that the electricity shortfall reached 7,000 megawatts, which shows that the energy crisis in Pakistan has worsened to a critical level. The hot weather conditions have increased the demand to produce 28,200 megawatts, while the power supply is only 21,200.

Currently, hydropower is generating 4,635 megawatts of electricity, the government’s thermal power plants provide the country with 1,060 megawatts, and 9,677 is produced by IPPs. The shortage of oil, gas and coal has forced the country to close several power plants. Due to this shortfall, different parts of the country are experiencing severe load shedding with a duration of 10 to 12 hours. The people’s lives have been affected negatively by the power cuts.

[wpbtn2 link=”https://drive.google.com/file/d/1C2zHDGqVawq7NT86ELCS91mrd05fUkmq/view” text=”Direct Download PDF”]

The root cause of the energy crisis in Pakistan can be traced back to the 1990s. In the 1970s, the government launched two huge projects in the form of Mangla and Tarbela dams. These projects helped to overcome the energy crisis at that time. They also contributed to the economic growth of the country. The economic growth increased the energy demand. However, the government failed to keep up and satisfy the demand. The lack of policy making, mismanagement of resources and other factors made the situation worse over time.

There are many reasons behind every problem. If the problem is not handled properly, it can have serious consequences for the society, the citizens and the economy of the country. Pakistan is facing an unprecedented energy crisis. It is essential for the current government to evaluate the depth of the situation and take measures to find the best possible solutions. The energy production is stagnant, while the energy consumption is rising every day. It seems that the government has not given this aspect enough priority. This ignorance has resulted in the energy crisis in Pakistan.

It is important for our politicians to work for the welfare of the country, putting aside their differences. Pakistan can be guided on the right path of prosperity if there is unity and consensus among the politicians. Unfortunately, the politicians and parliament are so divided that they are unable to realize the gravity of the situation. A good example of this is the Kalabagh dam. The disunity among politicians prevented the construction of the dam. If the dam had been built, it would have reduced the energy crisis. Since Pakistan has not built any dam or water reservoir for a long time, it has further worsened and aggravated the situation.

Another factor that contributed to the energy crisis is the inability of the government to collect funds to launch new power projects. The economic condition of any country plays a vital role in attracting foreign funding. Pakistan’s current economic situation is not good enough to appeal to foreign investors. The collection of funds is also dependent on the budget deficit.

Pakistan’s fiscal deficit is Rs.1.13 trillion in 2021. This makes it difficult to start new power projects without having enough funds. The government needs to pay attention to the use of modern technology. The leaders should consider the use of technology to solve the crisis. The government should use advanced equipment to generate more energy. The energy crisis can be reduced by half if solar and wind energy are used. This method has also been ignored by our politicians.

Another cause of the crisis is the theft of energy. People in Pakistan have adopted this habit without thinking about the consequences for the country. Every year, 4,500 megawatts of energy are stolen and 100 billion bills are unpaid. This practice has negative effects on the economy. If the energy is stolen and the bills are not paid, the country cannot afford to buy energy with a circular debt that is increasing every day. The energy theft was recorded to be 2.73 trillion in the year 2021.

These factors have caused the country to face the energy crisis. There are solutions but they require effective measures and appropriate actions. These factors show the many problems that Pakistan is facing. The energy crisis has reached a critical level that needs to be addressed properly. Our politicians need to look at the worsening situation of Pakistan. They should put their personal interests aside and prioritize the country’s interests. Therefore, it is urgent to take initiatives to stop the looming crisis of energy; otherwise the country will be doomed to darkness. Then it will be too late to regret. (by Usama Rahman)

Essay on Energy Crisis in Pakistan – 200 Words

Pakistan is facing an energy crisis that has severely affected the country’s economic and social development. The crisis is characterized by a shortage of electricity and natural gas, leading to prolonged power outages and gas load shedding. The situation has created several challenges for the government, businesses, and households, as it affects every aspect of life.

The energy crisis has its roots in several factors, including poor management of the energy sector, insufficient investment in energy infrastructure, and reliance on non-renewable sources of energy. Pakistan has been facing a growing demand for energy due to population growth, urbanization, and industrialization, while the supply has remained stagnant or declined. As a result, the country is heavily dependent on imports of oil, gas, and coal, making it vulnerable to price fluctuations in the international market.

The energy crisis has had severe consequences for the economy, leading to a decline in productivity, rising costs of production, and reduced competitiveness in global markets. It has also affected social welfare, particularly in the areas of health, education, and agriculture. The shortage of electricity has disrupted medical services, impaired educational outcomes, and reduced crop yields.

To address the energy crisis, Pakistan needs to adopt a multi-pronged strategy that includes a mix of measures such as conservation, renewable energy, and increased investment in energy infrastructure. The government needs to prioritize reforms in the energy sector, promote private sector participation, and enhance coordination among stakeholders. Additionally, the public needs to be educated about the importance of energy conservation and the benefits of renewable energy sources. By taking these steps, Pakistan can overcome the energy crisis and achieve sustainable economic and social development.

Essay on Energy Crisis in Pakistan – 500 Words

Pakistan is currently facing an energy crisis that has severely impacted the country’s economic and social development. The crisis is characterized by a shortage of electricity and natural gas, leading to prolonged power outages and gas load shedding. The situation has created several challenges for the government, businesses, and households, as it affects every aspect of life.

The situation in Pakistan is very alarming. We face an electricity shortage of 4000 megawatts (4000 MW) or more than 50% of the total power generation capacity. This figure is only increasing as generation capacity declines due to battery reasons, leading to load-shedding hours increasing. A lot of electricity is being removed from feeders that are not economical or profitable.

Thousands of people are being left in the dark by unscrupulous companies. All of their hard work has gone to waste as they have had no way of contacting us or staying running. Help protect these people from further energy shortages and save Pakistan.

The level of this crisis is growing by the day. If we don’t take a stance now, then other dark ages await us. Therefore, it is necessary to know this topic and know how to prevent such a catastrophe. 

Our country is facing a severe electricity problem. If we add more power plants to the two, we have present, and then the resulting energy will not be clean. Even though our existing plants are polluting, they might be in a position to supply enough electricity for our country if there were no flaws in our current energy production system.

The electricity crisis is an additional burden on the already struggling Pakistani society. Most commoners are working because they have to buy costly machines to get independence from power outages. WAPDA’s former chairman, who happens to be a caretaker minister, admitted that WAPDA could not provide electricity. But, sadly, he was followed by many other incompetent ministers who believed that giving more power to unpopular generals would solve the problem.

The Pakistani government seems to be forgetting that alternate energy sources can supply more energy and are not as harmful to the environment.

With climate change, there is a growing need for alternate energy. With Pakistan’s sizeable natural resources, it should be trying to develop solar and windmill energy. Thus, it would be beneficial in the long term.

In the end, Pakistan is under the threat of running out of natural resources for energy. Our government needs to invest in alternative energy and stop depending on oil. It leads to the rise of environmental pollution, adverse effects on climate change, and a higher deficit. It also leads to an economic crisis due to the excessive need for foreign costs. We should reduce our reliance on imported electricity and fuel by investing in clean fuels to prevent the pollution of our environment.

Related Essays:

• Essay on Environment (200 & 500 Words)
• Essay on Farmer (200 & 500 Words)
• Essay on Fashion For students (200 & 500 Words)
• Essay On Fatima Jinnah
• Essay on Feminism (200 & 500 Words)
• Essay on Flood (200 & 500 Words)
• Essay on Football (200 & 500 Words)
• Essay on Forest (200 & 500 Words)
• Essay on Freedom Fighters (200 & 500 Words)
• Essay on Gender Inequality (200 & 500 Words)

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.

Read The Diplomat , Know The Asia-Pacific

• Central Asia
• Southeast Asia
• Environment
• Asia Defense
• China Power
• Crossroads Asia
• Flashpoints
• Pacific Money
• Tokyo Report
• Trans-Pacific View
• Photo Essays
• Write for Us
• Subscriptions

Finding the Right Way Forward in Pakistan’s Energy Crisis

Recent features.

Japan’s LNG Future: Balancing Energy Security With Sustainability Commitments

Why Is South Korea’s President Yoon So Unpopular?

The Logic of China’s Careful Defense Industry Purge

The Ko Wen-je Case Points to Deeper Problems in Taiwan Politics

Anarchy in Anyar: A Messy Revolution in Myanmar’s Central Dry Zone

The Complex Legacy of Ahmad Shah Massoud

Diplomacy Beyond the Elections: How China Is Preparing for a Post-Biden America

Sri Lanka’s Presidential Manifestos: What’s Promised for Women?

The Global Battle for Chip Talent: South Korea’s Strategic Dilemma

Bangladesh’s New Border Stance Signals a Shift in Its Approach to India 

The Solomon Islands-China Relationship: 5 Years On

Finding Home in Bishkek: Kyrgyzstan’s South Asian Expats

The debate  |  opinion.

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

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.

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

By abdul waheed bhutto.

Pakistan and the Global North’s Climate-linked Trade Policy 

By maryam khan.

United Front, Clean Future: South Asia’s Path to Sustainable Energy

Why India Became Indispensable to US Foreign Policy and Pakistan Was Left Behind

By syed abdul ahad waseem.

Arakan Army Commander-in-Chief Twan Mrat Naing on the Future of Rakhine State

By rajeev bhattacharyya.

US Air Force Deploys More Stealth Jets to Southeast Asia

By christopher woody.

Islamic Fundamentalism Raises Its Head in Post-Hasina Bangladesh

By snigdhendu bhattacharya.

Kim Jong Un Abandoned Unification. What Do North Koreans Think?

By kwangbaek lee and rose adams.

By John Calabrese

By Mitch Shin

By K. Tristan Tang

By James Baron

E-Paper | September 16, 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.

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

• Ayesha Zafar https://www.paradigmshift.com.pk/author/ayesha-zafar/ The Digital Economy in the 21st Century: Blockchain for Real Estate
• Ayesha Zafar https://www.paradigmshift.com.pk/author/ayesha-zafar/ Pakistan Hosts the 2021 OIC Meeting on Afghanistan
• Ayesha Zafar https://www.paradigmshift.com.pk/author/ayesha-zafar/ German Chancellor Angela Merkel Says Farewell to Politics
• Ayesha Zafar https://www.paradigmshift.com.pk/author/ayesha-zafar/ President Biden’s Summit for Democracy 2021: A Big Question Mark?
• Ayesha Zafar https://www.paradigmshift.com.pk/author/ayesha-zafar/ The Ill-Fated Relationship Between Pakistan and the International Monetary Fund (IMF)

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 .

Related Posts

Madrassas and Afghan Mujahideen: How Did the American Strategy Backfire During the War in Afghanistan?

Written by Hadiqa Maryam Abbasi • September 13, 2024 • 7:59 pm •

Adoption of Remote Sensing & Geographic Information Systems in Pakistan

Written by Mansoor Tariq Khattak • September 13, 2024 • 6:54 pm •

Historic Climate Camp in Balochistan: A Milestone in Climate Awareness

Written by Paradigm Shift • September 11, 2024 • 7:37 pm •

Privatization in Pakistan

Written by Masroor Sodhar • September 10, 2024 • 6:30 pm •

One Reply to “Essay on Energy Crisis in Pakistan”

Very interesting

FATIMA Fertilizer

Most Read – All Time

• Contributors
• Top Interns
• Terms of Service & Privacy Policy

Energy Crisis in Pakistan Proposal

• To find inspiration for your paper and overcome writer’s block
• As a source of information (ensure proper referencing)
• As a template for you assignment

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

UKERC 2012, Energy demand. Web.

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

• Reasons and Obstacles for Women to Penetrate Retail Industry in Saudi Labour Market
• Economic Environment: Privatisation
• The Right Way to Identify and Assess Risks. Hydroelectric Development vs. Irrigation Scheme
• Performance and Satisfaction in the UK
• Khalaf Ahmad Al Habtoor' Leadership Style
• Financial Risk Management: Based on the 2008 Global Financial Crisis
• Market Structure during Post-Mao China: Capitalism or Socialism?
• Analysis of the growth in India based on Augmented Solow model
• The British Library - Economics, Academic, Cultural Impact on the British People
• Continuity/Discontinuity of History of Economics
• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2019, May 20). Energy Crisis in Pakistan. https://ivypanda.com/essays/energy-crisis-in-pakistan-proposal/

"Energy Crisis in Pakistan." IvyPanda , 20 May 2019, ivypanda.com/essays/energy-crisis-in-pakistan-proposal/.

IvyPanda . (2019) 'Energy Crisis in Pakistan'. 20 May.

IvyPanda . 2019. "Energy Crisis in Pakistan." May 20, 2019. https://ivypanda.com/essays/energy-crisis-in-pakistan-proposal/.

1. IvyPanda . "Energy Crisis in Pakistan." May 20, 2019. https://ivypanda.com/essays/energy-crisis-in-pakistan-proposal/.

Bibliography

IvyPanda . "Energy Crisis in Pakistan." May 20, 2019. https://ivypanda.com/essays/energy-crisis-in-pakistan-proposal/.

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

• Basic site functions
• Ensuring secure, safe transactions
• Secure account login
• Remembering account, browser, and regional preferences
• Remembering privacy and security settings
• Analyzing site traffic and usage
• Personalized search, content, and recommendations
• Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Cookies and similar technologies are used to enhance your experience by:

• Remembering general and regional preferences
• Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy .

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy .