Energy Crisis In Pakistan

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Energy is considered to be life line of any economy and most vital instrument of socioeconomic development of a country. Energy is pivotal in running machinery in factories and industrial units, for lighting our cities and powering our vehicles etc.

There has been an enormous increase in the demand of energy as a result of industrial development and population growth, in comparison to enhancement in energy production. Supply of energy is, therefore, far less than the actual demand, resultantly crisis has emerged. An energy crisis can be defined as any great bottleneck (or price rise) in the supply of energy resources to an economy.

Pakistan’s energy infrastructure is not well developed, rather it is considered to be underdeveloped and poorly managed. Currently the country is facing severe energy crisis. Despite of strong economic growth and rising energy demand during past decade, no serious efforts have been made to install new capacity of generation. Moreover, rapid demand growth, transmission losses due to outdated infrastructure, power theft, and seasonal reductions in the availability of hydropower have worsened the situation. Consequently, the demand exceeds supply and hence load-shedding is a common phenomenon through power shutdown.

Energy Supply:

During 2009-10, Energy supply and per capita availability of energy witnessed a decline of 0.64 % and 3.09 % respectively in comparison to previous year.

Pakistan needs around 15,000 to 20000 MW electricity per day, however, currently it is able to produce about 11,500 MW per day hence there is a shortfall of about 4000 to 9000 MW per day. This shortage is badly hampering the economic growth of the country.

Energy Consumption:

Pakistan’s energy consumption is met by mix of gas, oil, electricity, coal and LPG sources with different level of shares. Share of gas consumption stood at 43.7 %, followed by oil 29.0 percent, electricity 15.3 percent, coal 10.4 percent and LPG 1.5 percent.

Pakistan’s energy crisis traces its roots to following distinct causes :

Growing Energy Demand:

Over the years there is greater need of energy because of;
Ø Increase in population,
Ø Enhancement in lifestyle
Ø Industrial and agricultural growth
Ø Greater transportation needs

Lack of proactive and integrated planning for production of energy:

Pakistan has had wider potentials to tap energy, however, due to lack of any integrated/proactive planning, very less number of power producing plant were installed to meet futuristic demands. Resultantly, over the years, the gap between energy demand and supply drastically grew and now against demand of 20000 MW, we are having around 11500 MW.

Imbalance energy mix:

Energy mix in Pakistan is quite imbalance in comparison to other countries, with greater reliance on non-renewable resources of gas (43.7 %) and oil (29 % - majority of which is imported). Prices of petroleum products/crude oil fluctuate and in current Afro-Arab political crisis, the oil prices are likely to increase manifold affecting oil prices in Pakistan.

A rational energy mix planning ought to be developed giving greater dependency to renewable (hydel power), indigenous (coal) and alternative energy resources (wind and solar energy). Nuclear energy can

Non-utilization of enormous indigenous energy resources:

Thar Coal:


§ Pakistan is having one of the largest coal fields in Thar, having reserves of more than 175 billion tones, which exceeds equivalent oil reserves of Saudi Arabia, Iran etc.
§ In addition to power generation, this coal can be used for chemical and fertilizer production.
§ Moreover, employment provided to workforce can be instrumental in increasing GDP and economic prosperity to many families.

Hydal power generation :


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


Consequences of Energy Crisis:


i). Economic Factors: Energy is pivotal for running all other resources and crisis of energy directly influences all other sectors of the economy. The economic progress is hampered by decline in agricultural productivity as well as by halting in operations of industries. One important factor of lower GDP and inflation of commodity prices in recent years is attributed to shortfalls in energy supply.

ii). Agriculture Sector: Agricultural productivity of Pakistan is decreasing due to provision of energy for running tube wells, agricultural machinery and production of fertilizers and pesticides. Thus higher energy means higher agricultural productivity.

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

iv). Unemployment: By 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 towards unemployment.

v). Social Issues: This factor is primarily related to the domestic usage of energy (cooking, heating and water provision). Load shedding cause unrest and frustration amongst the people and results in agitation against the government.

vi). Poverty: Declination in economic growth, lower agricultural productivity, unemployment and shackling industrial growth result in increasing poverty. Currently, around forty percent of our population is living beyond poverty line and this ratio is increasing day by day. Ample control of energy crisis will surely yield in curbing the menace of poverty.

Energy Crisis has, more or less, plagued all sectors of Pakistan’s machinery ranging from economy to industry, agriculture to social life, inflation to poverty and it is hampering national progress in a drastic manner. Nonetheless, menace of energy crisis can be overwhelmed by government through making effective policies and its proactive implementation. Simultaneously, it is the responsibility of us, the people of Pakistan, to utilize the available energy astutely and wisely to play our due role for progress of the country. 

 Recommendations/Solutions of Energy Crisis


Energy crisis can be curtailed by:
i). Reducing unnecessary energy use:
Ø  Usage of electricity saving devices
Ø  Awareness campaign for energy saving
Ø  Reduction in unnecessary transportations by developing good public transport systems and strengthening Pakistan railways
Ø  Reduction in industrial uses with installation of effective equipment/ energy efficient and with increasing efficiency of workforce (cost effective)
Ø  Decreasing reliance on rental power projects, because instead of doing any good, they are increasing prices of electricity.
Ø  Decreasing line losses by using efficient power transmission cables
ii). Developing new energy resources:
Ø  Tapping indigenous resources (Thar coal)
Ø  Using renewable resources (water) by constructing new dams and hydro power plants
Ø  Import of natural gas by IPI (Iran, Pakistan, India) and TAPI (Turkmenistan, Afghanistan, Pakistan and India) pipelines.
Ø  Import of electricity from Tajikistan -through Pak Afghan Tajikistan transmission- and Iran (approximately 1000 MW from each of them) pipelines
Ø  Utilizing alternative energy resources :
§ Wind power§ Biodiesel /Biomass § Solar § Tidal
Ø  Enhancing civilian nuclear capacity.



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