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

thesis statement on energy crisis in pakistan

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

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Words

Energy Crisis in Pakistan Essay: A Looming Challenge

Words

  • October 18, 2023

energy crisis in pakistan

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.

essay on energy crisis in pakistan

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.

Words

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

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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.

Energy Security Program

  • national security

Keeping the Lights on: Fixing Pakistan’s Energy Crisis

thesis statement on energy crisis in pakistan

A stable and thriving Pakistan is the key to preserving harmony and facilitating progress in the broader South Asia region. Afghanistan, which is to the west of Pakistan, has a long border that divides the Pakhtun people between the countries. As a result of this border, Pakistan not only has a significant role in the Afghan economy, but instability in the loosely governed Pakistani frontier region spills across the border into Afghanistan. Because of this relationship, Pakistan has a direct impact on the outcome on the 13 year U.S. led war in Afghanistan.  On the other hand, an unstable Pakistan would not only shatter budding trade relations with India, but could also spark conflict between the two nuclear armed rivals.

From frequent attacks by Islamic militants across the country to a slowing economy, it is clear that there are many issues that threaten Pakistan’s stability. However, the most pressing issue that Pakistan faces today is its deteriorating economy. In particular, a crushing energy shortage across the country significantly constrains economic growth. This fiscal year, Pakistan’s Gross Domestic Product (GDP) is forecasted to grow by measly 3.4 percent. At the same time, the country’s population is expected to grow by 1.8 percent adding to the 189 million people living there today. If there aren’t jobs available for the millions of young Pakistanis entering the work force, not only will poverty increase, but there is a strong possibly that some of these youth could vent their frustrations by joining the countless Islamic militant groups active in the country.

To build a more prosperous economy, Pakistan needs to address its energy problems. Without a reliable source of electricity or natural gas, how can Pakistani businesses compete on the global market? Large parts of the country today face blackouts lasting an average of 10 hours each day because of the electricity shortage. The current gap between electricity generation and demand is roughly 2500 MW, a shortage large enough to keep a population of 20 million or the city of Karachi in the dark.

These power shortages are only expected to become worse in the coming summer months. This is because demand for electricity peaks in the sizzling heat, while hydroelectric generation decreases as the water flow in the rivers drops due to seasonal fluctuation. This article will focus on the causes of the country’s energy problems involving the electricity sector and explore possible directions Pakistan can take to improve its energy situation, building its economy in the process.

How Does Pakistan Generate its Electricity?

thesis statement on energy crisis in pakistan

Figure 1 breaks down Pakistan’s electricity generation by source. Thermal power, which includes natural gas, oil, and coal generated electricity, accounts for 70 percent of Pakistan’s total electricity generation, while hydroelectric generation is roughly responsible for the remaining 30 percent.

Electricity generated from furnace oil accounts for slightly over a third of Pakistan electricity. In the early 1990s, the country faced a power shortage of about 2000 MW when there was a peak load on the electricity grid. To resolve the growing crisis, the Pakistani government implemented a new policy in 1994, which was designed to attract foreign investment in the power sector and as a result there was construction of oil based power plants. These power plants were cheaper and faster to construct compared to other electricity generation plants such as hydroelectric dams. At the same time, the relatively low prices (below $17 a barrel) of crude oil meant that these plants generated electricity fairly cheaply. Fast forward to present times, the price of crude oil has risen to hover roughly around $100 a barrel. Unlike nearby Saudi Arabia, Pakistan is naturally not well endowed in crude oil reserves. This means that Pakistan must ship increasing amount of valuable currency abroad to secure the oil it needs to keeps these power plants running.

Along with furnace oil power plants, natural gas is used to generate about another third of electricity; it is provided by domestic reserves, thereby helping Pakistan’s economy and energy security. According to the U.S. Energy Information Administration, Pakistan has proven natural gas reserves of 24 trillion cubic feet (Tcf) in 2012. These reserves will last Pakistan an estimated 17 years based on the country’s annual consumption rate of 1.382 Tcf in 2012. At the same time, consumption rates are estimated to increase four fold to nearly 8 Tcf per year by the year 2020, further reducing the size of the domestic reserves.

The Pakistani government in 2005 under President Pervez Musharraf promoted the conversion of cars to run on compressed natural gas (CNG) instead of gasoline. The rationale was that this conversion would reduce the amount of money spent on purchasing and importing oil abroad. At the same time, CNG is cleaner for the environment than burning gasoline. As a result of this policy, more than 80 percent of Pakistan’s cars today run on CNG.But because of this surging demand for its limited natural gas, there is a critical shortage of it which has adversely impacted the country’s ability to use this fuel source to generate electricity. Essentially Pakistanis are forced to decide whether to use natural gas to fuel their cars, cook their food, or generate electricity.

Power Theft and the Circular Debt Issue

The reliance on oil and natural gas to generate electricity is incredibly inefficient, but these inefficiencies alone are not responsible for the crippling power shortages. The other source of tension involves the accumulation of circular debt in the electricity sector over the past few years. Circular debt is a situation where consumers, electricity producers and the government all owe each other money and are unable to pay. By June 2013 when the new government led by Prime Minister Nawaz Sharif took control, this circular debt had ballooned to $5 billion.

There are several reasons for the accumulation of this debt; the largest problem stems from power theft. Many Pakistani elites and even parts of the government do not pay their electricity bills. The law and order situation also prevent power companies from collecting bills in certain parts of the country. As a result, Pakistani electricity companies currently recover only 76 percent of the money that electricity consumers owe them. In fact, the Pakistani Minister for Water and Power, Mr. Khwaja Muhammad Asif, has acknowledged that the Pakistani government is one of the country’s largest defaulters of electricity bills. As part of recent crackdown, the power ministry cut supplies to the Prime Minister’s home and the Parliament House (among many government offices) because they were delinquent on their electricity bills. While many Pakistanis don’t pay their electricity bills, others steal power by illegally hooking into the power grid. This theft coupled with an inefficient electricity grid and the associated transmission loss means that Pakistan’s electricity generators are left with huge financial losses.

All these losses accumulate to form the circular debt and it places power producers in a position where they are unable to purchase enough fuel from abroad to operate power plants at full capacity. With an installed generation capacity of 22500 MW, Pakistan currently has more than enough installed capacity to meet peak demand levels today. The power producers are in reality only able to generate between 12000MW and 15000MW because of both inefficient energy infrastructure and circular debt. This actual amount of electricity generated is far less than the 17000 MW of demand nationwide during peak hours of electricity usage.

The circular debt also makes it more difficult for power producers to invest in upgrading existing electricity infrastructure. If power producers don’t have the money to operate oil based power plants at full capacity, they certainly do not have enough capital to build newer, more efficient power plants. Even when the lights are on, the inefficient electricity system takes an additional toll on the country’s economy. Pakistanis today pay more than double their Indian neighbors for electricity (16.95 Pakistani Rupees vs. 7.36 Pakistani Rupees per KWh respectively), putting Pakistani firms at a further disadvantage compared to regional competitors.

Fixing Pakistan’s Electricity Problems

One of Prime Minister Nawaz Sharif’s first actions after taking office was to pay off the $5 billion in circular debt that had accumulated by July 2013. Unfortunately, this step alone will not solve the power woes as it does not fix the underlying causes of the country’s power crisis. In fact, the circular debt has accumulate again, and stood at $1.8 billion by January 2014.  To sustainably address the power crisis, Pakistanis need to change their attitude towards power theft by forcing the government and those delinquent to clear outstanding bills. At the same time, Pakistan must improve the efficiency of its electricity sector as well as expand and diversify its electricity generating capacity in order to ensure that the country can handle the expected growth in demand over the coming years.

Hydroelectric Generation

Pakistan has tremendous potential to expand its electricity generating capacity by developing its renewable energy resources. At nearly 30 percent, hydroelectricity is already a major source of electricity generation, but according to the Pakistani government, this reflects only 13 percent of the total hydroelectric potential of the country. There are several drawbacks of major hydroelectric projects including that they are capital intensive and require extensive time to build. Furthermore, hydroelectric dams are harmful to the local ecosystem and can displace large populations. The U.S. government is actively investing in helping Pakistan develop its hydroelectric resources; in 2011, USAID funded the renovation of the Tarbela Dam. In the process, this added generation capacity of 128 MW, which is enough electricity for 2 million Pakistanis.

Solar Energy

thesis statement on energy crisis in pakistan

According to the USAID map of solar potential in Pakistan, the country has tremendous potential in harnessing the sun to generate electricity.  Pakistan has an average daily insolation rate of 5.3 kWH/m 2 , which is similar to the average daily insolation rate in Phoenix (5.38 kWH/m 2 ) or Las Vegas (5.3 kWH/m 2 ), which are some of the best locations in the United States for solar generated electricity. So far, Pakistan has begun construction on a photovoltaic power plant in Punjab that will begin to produce 100 MW by the end of 2014.According to the World Bank some 40,000 villages in Pakistan are not electrified. Tapping into these solar resources could easily electrify many of these off the grid villages, while avoiding an increase in demand on the national electricity grid.

Nuclear Energy

Pakistan has three currently active nuclear power plants: two located in Punjab and one in the southern port city of Karachi. The two Chinese built nuclear power plants in Punjab each have a net generation capacity of 300 MW. The Karachi power plant, which was built with a reactor supplied by Canada in 1972, has a net generation capacity of 125 MW, enough to provide power to 2 million Pakistanis. China has been a key supplier and investor in Pakistani nuclear energy, but there are some concerns regarding the transfer of nuclear technology to Pakistan, where A.Q. Khan’s nuclear network was headquartered. Specifically, China argues that its alliance with Pakistan predates its joining of the Nuclear Suppliers Group (NSG), which has restricted nuclear sales to Pakistan, so this justifies its desire to supply Pakistan with the technology. The Chinese are helping construct four more nuclear power plants, the first of which is expected to be online starting in 2019. While these plants will add 2,200 MW of generation capacity, these nuclear power projects are expensive; the current nuclear power plants under construction are said to cost about $5 billion per plant, an investment that China is helping finance.

There is a large amount of coal located in the Thar Desert in the southeastern part of the country. While the quality of the coal isn’t the best, Pakistan has a lot of it, nearly 175 billion tons, which is enough to meet current electricity demands for more than 300 years. However, Pakistan currently only has one operational coal power plant.

Pakistan is taking steps to develop this resource. In January 2014, Prime Minister Nawaz Sharif and former President Zardari broke ground on a $1.6 billion coal power project in the Thar Desert. This particular project is expected to be operational by 2017.

Pakistan has taken some clear steps such as developing its renewable resources and tapping its coal reserves, which can help expand and diversify where and how it generates its electricity. Further harnessing these resources will help alleviate the electricity shortfall. However, these steps alone will not solve the energy crisis. The more difficult solution involves changing the country’s attitude toward power theft, both by private citizens and the government. Convincing people to pay their electricity bills is difficult when even the government itself doesn’t pay its fair share. At the same time, there is less incentive to pay when citizens don’t even have access to a dependable source of electricity when they need it. As long as this attitude is prevalent among Pakistanis from all walks of life as well as the government, the country cannot sustainably solve its energy woes. Circular debt will continue to accumulate and large sections of the country will face hours of darkness each day.

Tackling the energy problem is the first step to strengthening the economy; over time, a growing economy will attract greater investment in the energy sector. Pakistan’s sensitive geographic location could become a strategic asset as it would serve as a bridge linking the economies of Afghanistan and Central Asia with the broader Indian subcontinent. Not only does the population provide Pakistan with a large domestic market, but it also empowers the country with a young, entrepreneurial workforce. This gives Pakistan tremendous potential, but can only be unleashed if the country figures out a way to keep the lights on and the factories humming.

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“Discovery Of Ignite Coal In Thar Desert.”  Geological Survey of Pakistan,  2009.  http://www.gsp.gov.pk/index.php?option=com_content&view=article&id=30:thar-coal&catid=1:data

“Nawaz, Zardari launch Thar coal power project.”  Dawn , Jan 31 2014.  http://www.dawn.com/news/1084003

Ravi Patel is a student at Stanford University where he recently completed a B.S. in Biology and is currently pursuing an M.S. in Biology. He completed an honors thesis on developing greater Indo-Pakistan trade under Sec. William Perry at the Center for International Security and Cooperation (CISAC). Patel is the president of the Stanford U.S.-Russia Forum. He also founded the U.S.-Pakistan Partnership, a collaborative research program linking American and Pakistani university students. In the summer of 2012, Patel was a security scholar at the Federation of American Scientists. He also has extensive biomedical research experience focused on growing bone using mesenchymal stem cells through previous work at UCSF’s surgical research laboratory and Lawrence Berkeley National Laboratory.

Nelson Zhao is a fourth year undergraduate at University of California, Davis pursuing degrees in economics and psychology. Nelson is the Vice-President at the Stanford U.S.-Russia Forum and the Program Director at the U.S.-Pakistan Partnership. At the U.S.-Pakistan Partnership, he aims to develop a platform to convene the brightest students in order to cultivate U.S.-Pakistan’s bilateral relations.

If FESI is going to continue to receive Congressional appropriations through DOE, it should be structured from the start in a way that allows it to be as effective as possible while it receives both taxpayer dollars and private support.

As a Group Leader of the Catalysis Science Program and Polymer Group at Argonne National Laboratory, Dr. Delferro’s work could help take plastic out of landfills and put them to good use elsewhere.

On today’s two-year anniversary of the IRA, FAS is highlighting policy proposals that build on the IRA’s successes to date and suggest opportunities for continued impact.

The establishment of the Foundation for Energy Security and Innovation (FESI) was a vital first step, but its value depends on what happens next.

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Average daily gas

thesis statement on energy crisis in pakistan

700mmcfd shortfall

thesis statement on energy crisis in pakistan

Off-flexold rural villges

thesis statement on energy crisis in pakistan

436.2 millionbb 2007 est

thesis statement on energy crisis in pakistan

30,090 bbl/day  2007 est

  • NATURAL GAS
  • ALTERNATIVE ENERGY

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

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

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

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

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

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

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

Chanda oil fields located in Khyber Pakhtunkhwa started oil production.

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

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

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

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

Dakni gas field started commercial production in December 1989.

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

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

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

Union Texas Pakistan discovered an oil field in lower Sindh.

Dhodak gas field was discovered in the province of Punjab.

The commercial production from Toot Oilfields started in 1967.

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

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

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

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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/.

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Home → Articles → Energy Crisis in Pakistan and Its Solution (Updated)

energy crisis in pakistan and its solution (1)

Written by Maryam Ibrahim and Izza Ikram • August 23, 2022 • 6:01 pm • Articles , Current Affairs , Pakistan , Published Content

Energy Crisis in Pakistan and Its Solution (Updated)

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Maryam Ibrahim has recently graduated from Lahore College for Women University with a bachelor's in international relations. Her sphere of interest includes the digitalization of international relations, specifically digital diplomacy.

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Izza Ikram

Izza Ikram is currently pursuing her bachelor’s degree in governance and public policy from National Defence University, Islamabad. She talks about public policy, climate change, and entrepreneurship.

Energy Security

The life and processes that take place across the whole world depend on energy. It’s similar to how the Earth may be powered. Since many production and consumption activities need energy as their primary input, it is highly important for the growth and economic development of a country in its growing stage. According to authors like Barney and Franzi , energy accounts for less than one-tenth of production costs while driving nearly half of industrial development in the modern economy. However, where there is energy, there is also a crisis.

What is it that affects everybody’s life yet cannot be touched directly? It’s natural gas. It heats our homes and drives our economy. And when there is a depletion, it has a kind of worldwide butterfly effect. The energy crisis is the shortfall or the interruption to the provision of energy supplies. It can be surprising for you to know that developed countries like China and Japan are also energy insecure . Yes, the 2nd largest and the 3rd largest economies of the world, respectively, are not secure as far as their energy needs and production are concerned.

This is because energy insecurity is defined based on whether a country is self-producing the energy for its requirements, whether it imports the energy to meet its requirements, or whether it is an exporter of the energy to other countries. Along these lines, energy security for a self-producing country can be defined as having available, accessible, and affordable energy at all times .

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Similarly, if it is an exporter, then the country’s energy security depends on its ability to keep the supply-demand high and global energy resources under its control. If it is an importer, then it must keep the energy prices and global energy markets under its influence as well as strive to keep its balance of payments positive.

Pakistan’s Energy Crisis

As of right now, the world is facing a shortage of energy and it has sent shock waves from Europe to Asia. And Pakistan is no exception. The energy industry in Pakistan is in crisis, due to a lack of energy output to keep up with the country’s rising demand during the past few decades. Pakistan is now reliant on imported energy resources like gas and oil.

The Asian Development Bank published a white paper in 2019 claiming that Pakistan is an energy-insecure country. Besides Pakistan, there are numerous countries worldwide including the developed ones that are also energy insecure. There are several examples of market growth followed by a downturn and severe contraction since the energy industry is, by nature, in a loop, but the current crises are different in several aspects.

The recent increase in energy costs has given us a glimpse into the future, where market disruptions might result if the transition to low-carbon energy sources is not adequately managed or stressed. According to Shazia Anwar Cheema , Pakistan might face an extremely challenging and disastrous winter as a result of the lack of long-term energy management strategies by policymakers.

The crisis is likely to worsen due to the Middle Eastern countries, which serve as the major source of imports, being severely impacted by the strain that Europe is experiencing as a result of the fuel and gas shortfall. The current bleak situation shows that the power shortfall at the moment is about 7,500 megawatts which subsequently results in 10-18 hours of load-shedding. This means the current supply is about 18,000 megawatts and the required supply is 25,000-25,500MW. Furthermore, Pakistan’s energy cost doubled in the last 9 months; it now stands at 15 billion USD.

Energy Profile of Pakistan

The Government of Pakistan has unveiled a number of initiatives to facilitate the public’s access to energy, spur economic expansion, and find a solution to the energy issue. The initiatives include:

  • The National Power Policy 2013

The policy aimed to develop a power production, transmission, and distribution system that was effective and could fulfill the requirements of the populace while boosting the economy of the nation in a cost-effective and sustainable way.

  • Power Generation Policy 2015

The fundamental goal of the policy was to have enough cheapest available power production capacity while emphasizing the use of domestic resources, enabling all parties engaged in the trade, and protecting the environment.

  • Alternative and Renewable Energy Policy 2019

The major objective of the 2019 policy was to encourage and support the nation’s development of renewable resources.

To satisfy the nation’s needs, Pakistan produces a very small fraction of its total oil output. The production of domestic oil is restricted by technical, budgetary, and technological limitations. According to the most recent figures, the cost of oil imports surged from July through April of FY2022 from US$8.69 billion to US$17.03 billion, a 95.9% rise.

Oil is becoming more costly due to rising global oil prices and the severe devaluation of the Pakistani rupee, which is putting pressure on the country’s external sector and worsening its trade imbalance. Similarly, between July and April of FY2022, imports of LNG (liquefied natural gas) increased by 82.90 % in value, while imports of liquefied petroleum gas (LPG) increased by 39.86%.

Pakistan is also using nuclear technology to produce electricity, and its share is rapidly growing. During the period of July–March FY2022, the gross capacity of nuclear power plants rose by 39% to 3,530 MW, delivering 12,885 million units of energy to the national grid.

If we see the consumption of electricity by different sectors throughout Pakistan, it is divided into various areas like domestic, commercial, industry, etc.

Units Sold (GWh)HouseholdCommercialIndustryAgricultureOthersTotal
FY2020-21
(July-March)
41,5086,24622,2807,5587,008
FY2021-22
(July-March)
42,0556,64825,1608,1517,347

Reasons for the Looming Energy Crisis in Pakistan

The conflict between Ukraine and Russia has caused fuel prices to soar, endangering the supply chain and making it challenging for Pakistan to support the effective operation of its power plant. Long-term LNG suppliers canceled several shipments scheduled for delivery over the last few months, further tightening supplies, which has directly resulted in complications for Pakistan.

The ever-changing leadership and political turmoil and an unwillingness to address the problem and devise a solution have further aggravated the energy crisis in Pakistan. Governments, political parties, and other interest groups continue to interfere with business decisions like employing and disconnecting default customers. In the meantime, the utility firms disavow all liability and accuse the management authorities of wrongdoing.

There is an absence of coordination that prevents the implementation of any kind of comprehensive or integrated energy policy that may support Pakistan’s struggling economy and energy industry. Moreover, at a staggering 2.5 trillion Pakistani rupees, the circular debt is 10% more than it was in the previous fiscal year. By 2025, it is anticipated to reach 4 trillion Pakistani rupees, according to studies.

Reportedly, Rs. 1.5 trillion is owed by Sui Southern Gas Company Ltd (SSGCL) and Sui Northern Gas Pipelines Ltd. (SNGPL) to the Oil & Gas Development Company Ltd. (OGDCL) and Pakistan Petroleum Ltd. (PPL)—the mainstay of oil and gas exploration and production in Pakistan. This low-cost domestic energy source costs less than half as much as imported LNG, which Pakistan is using more of.

Due to the severe financial load, this is putting on our meager foreign exchange reserves, OGDCL, and PPL are unable to expand into new markets since their revenue is caught in a vicious circle of debt. The lack of new investment in exploratory initiatives in the aftermath of declining oil and gas reserves is concerning and does not bode well for the nation.

Apart from the aforementioned reasons, other contributing factors include:

  • Decreasing gas supply and dependence on oil
  • Unrealistic power tariffs (low investments)
  • Low payment recovery
  • Inefficient revenue collection
  • Overpopulation, over usage

Impact of Energy Crisis on Pakistan

The industrial sector has also been severely damaged by the energy crisis. The manufacturing processes of several major and small-scale industries have been stifled by it. Due to the continuous energy constraint, the supply of gas and electricity to the industry was shut off. The South Asian country is experiencing a severe economic crisis, with energy imports being hampered by rampant inflation, a depreciating rupee, and shrinking foreign exchange reserves.

Textiles are the industry most impacted. According to government statistics, the home sector’s demand for energy has increased this season as a result of the heatwave, resulting in a shortage of almost 7,000 megawatts—or one-fifth of Pakistan’s generation capacity—on several days this month.

Pakistan’s important textile sector , which sells everything from denim to bed linen to markets in the US and Europe and makes up 60% of the nation’s exports, has been negatively impacted by the electricity deficit. According to Qasim Malik, vice president of the Chamber of Commerce in Sialkot, “the textile sector is in a situation of emergency.”

What’s the Way Forward ?

Pakistan, like China and Japan, also generates its power from imported fossil fuels out of which 48% is natural gas and 33% is oil . Now the question is, what is the solution to the energy crisis in Pakistan? What measures shall Pakistan take as a result of which it could become an energy-secure country? All over the world, especially in Europe, there is a clean energy revolution in full swing.

A massive wave of transformation into alternative and renewable energy from conventional energy production methods by the year 2030 is underway. The national policies have been approved and now implementation has started. Denmark is one of the unique countries that have taken itself to a highly ambitious target of shifting to 100% renewable energy resources by the year 2050 .

So, in these fast-changing global energy trends, there are numerous opportunities for Pakistan to find a solution to its energy crisis. Following are the recommendations for adopting practical ways toward renewable energy in Pakistan .

Research and Development

First of all, like other states, Pakistan needs to impose proper rules and regulations regarding the operating hours of industries. Our think tanks and research centers should publish research articles and policy papers that are Pakistan-centric containing “robust implementation mechanisms” considering the local challenges. Pakistan needs to combine all the energy-related institutions’ needs under a single ministry, which will create efficiency in the dysfunctional energy sector and the whole sector will be streamlined.

Entrepreneurial Solutions

For Pakistan’s energy sector to be supported, it requires reliable funding and tax reforms. Then Pakistani entrepreneurs have a golden chance to come up with clever ideas to tackle the energy insecurity problem of Pakistan. They should mobilize land, labor, and capital based on the research by policy experts to invest in the manufacturing of green technologies that will be used locally as well as internationally.

The government of Pakistan is soon coming up with a National Innovation Fund of Rs. 100 Billion, according to unofficial sources of the Planning Commission of Pakistan. The Innovation Fund will aim to provide financial subsistence to innovative entrepreneurial ideas that can contribute to the economic improvement of Pakistan. So, young graduates and businesses have a great opportunity to create and pitch for green technology.

Investing in the Renewable Energy Industry

Similarly, it is a golden chance for local and overseas investors to invest in Pakistan’s renewable energy program for which the government of Pakistan has given an Alternative and Renewable Energy Policy in 2019. The document is the updated version of the RE Policy for Development of Power Generation 2006. Moreover, importing clean coal, which is frequently less expensive than imported oil and gas, will allow Pakistan to diversify its energy mix.

To reduce its dependency on conventional energy sources, Pakistan needs to decrease the demand for the grid station. It can do so by converting small-scale companies to solar energy and making them self-sufficient. In order to reduce their reliance on the national grid, other sources like the use of windmills have to be taken into account.

Public-Private Partnership

The public sector of Pakistan must make renewable energy a priority. The government of Pakistan should collaborate with countries like China that are technologically advanced and use this as an opportunity to improve bilateral relationships with them. Another solution would be for the government to subsidize the renewable energy industry and promote public-private cooperation to bring Pakistan out of the energy crisis.

Governance on Kunda System (Electricity Theft)

The Kunda system entails the unauthorized or illegal connection of wires to power lines, bypassing meters to avoid bill payment. This practice is widespread in Pakistan, causing a loss of Rs90 billion in the last five years due to electricity theft and line losses . The government should implement comprehensive reforms in the energy sector to enhance transparency, governance, performance, and accountability. Stricter enforcement is necessary to curb this detrimental trend.

The Energy Crisis Situation in 2023

In January 2023, Pakistan experienced a nationwide blackout for almost a day due to a voltage surge at a power station in Sindh. This problem is becoming more common because the aging electricity grid, built before Pakistan’s independence in 1947 and mainly in the 1960s, lacks maintenance and investment. Electricity costs have surged, now standing at approximately 50 rupees (12p) per kilowatt, while petrol prices have dramatically risen from 262 rupees per liter in June to 331 rupees in September.

The country is grappling with widespread protests against these soaring energy prices, with thousands of people taking to the streets, even resorting to burning their electricity bills in frustration. Pakistan is currently embroiled in a challenging period of political and economic instability, marked by a record-breaking inflation rate of 36.4%.

The government has taken a number of steps to try to reduce the circular debt, but it remains a major problem. The increase in circular debt from Rs160 billion in 2008 to Rs2,377 billion in 2023 is a sign that the problem is getting worse, not better. According to the statement from Human Rights Watch Report , the IMF and the Pakistani government should evaluate adjustment impacts thoroughly.

Prior to subsidy removal, there should have been the implementation of a comprehensive reform plan to ease price hikes and facilitate the transition to sustainable energy. The IMF’s article , released on July 12th, mentioned that the Executive Board of the International Monetary Fund (IMF) approved a 9-month Stand-By Arrangement (SBA), a short-term aid for countries with balance of payment issues, for Pakistan for an amount of SDR2,250 million (about $3 billion, or 111 percent of quota) to support the authorities’ economic stabilization program.

The world is changing rapidly. Every process is automated to save time and simultaneously speed up the production mechanisms. Without energy security, keeping up with the world will not be possible. If we strive to become competent and develop Pakistan as a modern country, we must adopt renewable energy methods to supplement our energy needs.

Due to the dynamics of the global economy, it may seem that in the near future, Pakistan will not experience a drop in the energy issue. However, it is the responsibility of the political leaders and the stakeholders of Pakistan to minimize this energy crisis and find a solution to it. It’s important to keep in mind that being optimistic will help you manage any degree of crisis. We all should do what’s in our control to strengthen our country on all fronts.

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

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

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Energy Crisis in Pakistan

Energy Crisis in Pakistan: Causes, Effects, and Possible Solutions

Introduction

  • Definition of energy crisis
  • Importance of energy for economic growth
  • Background of energy crisis in Pakistan
  • Thesis statement

2. Exposition

  • Energy demand and supply gap in Pakistan
  • Power sector inefficiencies and circular debt
  • Dependence on imported oil and gas
  • Insufficient investment in renewable energy sources
  • Inadequate energy infrastructure and transmission losses

3. Argumentation

  • Effects of energy crisis on Pakistan’s economy and society
  • Industries and agriculture
  • Household electricity and gas bills
  • Health and education
  • Political and security implications of energy crisis
  • Dependence on foreign aid and loans
  • Rise of extremism and terrorism
  • Possible solutions to energy crisis in Pakistan
  • Renewable energy sources and energy efficiency measures
  • Exploration and development of indigenous oil, gas, and coal reserves
  • Improvement of energy infrastructure and transmission lines
  • Addressing circular debt and power sector reforms

4. Description

  • Overview of Pakistan’s energy mix
  • Potential of renewable energy sources in Pakistan
  • Challenges and opportunities in the development of renewable energy
  • Technical and financial support from international organizations and donor countries

5. Narration

  • Success stories of renewable energy projects in Pakistan
  • Solar and wind power projects in Sindh and Punjab
  • Biogas plants in rural areas
  • Impact of renewable energy on local communities and environment
  • Future prospects of renewable energy in Pakistan

6. Conclusion

Pakistan is facing a severe energy crisis that has impacted all aspects of its economy and society. Energy crisis refers to a situation where a country or region does not have adequate energy resources to meet its demand for electricity, gas, and fuel. Energy is a vital input for economic growth and development, and its shortage can result in power outages, high energy bills, unemployment, poverty, and social unrest. Pakistan’s energy crisis is a complex problem that has been brewing for decades and requires urgent attention and action from policymakers, stakeholders, and citizens. This essay explores the causes, effects, and possible solutions to the energy crisis in Pakistan.

The energy crisis in Pakistan can be attributed to several factors, including the widening gap between energy demand and supply, power sector inefficiencies and circular debt, dependence on imported oil and gas, insufficient investment in renewable energy sources, and inadequate energy infrastructure and transmission losses. According to the Pakistan Energy Yearbook 2020, the country’s energy demand has been growing at an average rate of 4% per annum, while the installed capacity has only increased by 2.5% per annum. As a result, there is a significant shortfall in energy supply, leading to frequent power outages and load shedding.

Moreover, Pakistan’s power sector is plagued by inefficiencies, corruption, and circular debt. The circular debt is a vicious cycle of unpaid electricity bills, delayed payments, and accumulated interest that has ballooned to over Rs. 2.5 trillion ($16 billion). The power sector’s financial woes have resulted in the inadequate maintenance and upgrading of power plants, transmission lines, and distribution networks, further exacerbating the energy crisis.

Furthermore, Pakistan heavily relies on imported oil and gas to meet its energy needs, making it vulnerable to global price fluctuations and geopolitical risks. The country spends over $10 billion annually on oil and gas imports, draining its foreign exchange reserves and increasing its debt burden. In contrast, Pakistan has vast potential for renewable energy sources, including solar, wind, hydro, and biomass, which remain largely untapped due to the lack of investment and incentives.

Lastly, Pakistan’s energy infrastructure and transmission lines are outdated and inefficient, resulting in high transmission losses and power theft. According to the National Transmission and Dispatch Company (NTDC), the transmission and distribution losses in Pakistan are as high as 18%, compared to the global average of 8-10%.

Argumentation

The energy crisis in Pakistan has far-reaching effects on its economy and society. The shortage of energy has hampered industrial growth, reduced agricultural productivity, and increased production costs, leading to a decline in exports and foreign investment. Moreover, the high electricity and gas bills have burdened households, especially the poor, who have to spend a significant portion of their income on energy expenses.The energy crisis has also affected the health and education sectors, with hospitals and schools facing power outages and inadequate cooling and heating systems.

Furthermore, the energy crisis has political and security implications for Pakistan. The country’s dependence on foreign aid and loans to finance its energy imports has increased its debt burden and reduced its bargaining power in international forums. The energy crisis has also contributed to social unrest and the rise of extremism and terrorism in the country, with disgruntled youth joining militant groups and resorting to violence against the government and foreign interests.

Possible Solutions

To address the energy crisis in Pakistan, several possible solutions can be considered. Firstly, Pakistan needs to shift towards renewable energy sources and implement energy efficiency measures to reduce its dependence on imported oil and gas and lower its carbon footprint. The government should incentivize the private sector to invest in renewable energy projects, offer tax exemptions, and introduce net metering policies to encourage households and industries to generate their own electricity.

Secondly, Pakistan should explore and develop its indigenous oil, gas, and coal reserves to reduce its reliance on imports and enhance its energy security. However, this should be done in an environmentally sustainable and socially responsible manner, taking into account the local communities’ needs and concerns.

Thirdly, Pakistan needs to improve its energy infrastructure and transmission lines to minimize transmission losses and power theft. The government should invest in upgrading and expanding the transmission and distribution networks, introduce smart grid technologies, and promote public-private partnerships in the energy sector.

Lastly, Pakistan should address the circular debt issue and undertake power sector reforms to improve governance, transparency, and accountability. The government should ensure timely payment of electricity bills, recover outstanding dues, and streamline the tariff system to reflect the actual cost of production and distribution.

Description

Pakistan’s energy mix is dominated by fossil fuels, with oil and gas accounting for over 80% of its primary energy supply. Coal and hydroelectricity contribute around 6% and 12%, respectively, while renewable energy sources, including solar, wind, and biomass, account for less than 2%. Despite this, Pakistan has significant potential for renewable energy sources, with the World Bank estimating that the country can generate up to 150,000 megawatts of solar and wind power alone.

Several successful renewable energy projects have been implemented in Pakistan in recent years, including the Jhumpir Wind Power Plant in Sindh, the Quaid-e-Azam Solar Park in Punjab, and the Biogas Plants in rural areas. These projects have not only increased the country’s energy supply but also provided job opportunities, improved access to electricity for underserved communities, and reduced greenhouse gas emissions.

However, the development of renewable energy in Pakistan faces several challenges, including the high upfront capital costs, the lack of financing options, and the inadequate grid infrastructure. Moreover, the intermittent nature of solar and wind power requires backup storage systems, which are not yet commercially viable in Pakistan. Nevertheless, Pakistan can leverage its strategic location, abundant sunlight, and windy coastlines to become a regional leader in renewable energy.

The success stories of renewable energy projects in Pakistan are a testament to the country’s potential to address its energy crisis. The Jhumpir Wind Power Plant, for instance, has a capacity of 50 megawatts and can provide electricity to over 50,000 households. The project was initiated by the government in 2014 and completed in 2016 with the support of Chinese companies. The Quaid-e-Azam Solar Park, on the other hand, is the largest solar power plant in Pakistan, with a capacity of 1,000 megawatts. The project was launched in 2015 and completed in 2020 with the assistance of the Asian Development Bank.

Similarly, the Biogas Plants in rural areas have helped alleviate energy poverty and improve the living standards of rural communities. The project involves the installation of biogas digesters in households and farms, which convert animal waste and crop residues into biogas for cooking and heating purposes. The project has been successful in reducing deforestation, improving hygiene, and reducing indoor air pollution in rural areas.

Pakistan’s energy crisis is a complex and multifaceted issue that requires a comprehensive and sustainable solution. The country’s overreliance on imported oil and gas, circular debt, outdated infrastructure, and lack of investment in renewable energy sources have led to chronic energy shortages, high production costs, and social and political unrest. However, Pakistan has significant potential for renewable energy, and several successful projects have been implemented in recent years. To address the energy crisis, Pakistan needs to shift towards renewable energy sources, develop its indigenous energy resources sustainably, improve its energy infrastructure and transmission lines, and undertake power sector reforms. By doing so, Pakistan can not only address its energy crisis but also enhance its energy security, reduce its carbon footprint, and promote sustainable development.

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Renewable energy deployment to combat energy crisis in Pakistan

  • Abdul Raheem 1 , 2 ,
  • Sikandar Ali Abbasi 2 ,
  • Asif Memon 3 ,
  • Saleem R. Samo 3 ,
  • Y. H. Taufiq-Yap 4 ,
  • Michael K. Danquah 5 &
  • Razif Harun 1  

Energy, Sustainability and Society volume  6 , Article number:  16 ( 2016 ) Cite this article

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The huge deficiency of electricity due to heavy reliance on imported fuels has become a significant impediment to socio-economic development in Pakistan. This scenario creates an increase in local fuel prices and limits potentials in the establishment of new industrial zones. The current gap between the demand and production of electricity in Pakistan is approximately 5000–8000 MW with a constant increase of 6–8 % per annum. Hence, more sustainable and renewable energy sources are required to overcome the existing problem. Pakistan is endowed with potential renewable energy resources such as wind, solar, hydro, and biomass. These resources have the capacity to be major contributors to future energy production matrix, climate change reduction efforts, and the sustainable energy development of the country. This article reviews the availability of alternative energy resources in Pakistan and associated potentials for full-scale development of sustainable energy systems. It also discusses exploitation strategies to increase the distribution of indigenous energy resources.

Pakistan is one of the most populated countries in the southern Asia region, contributing approximately 2.56 % of the total global population. The country is expected to serve as an international trade and energy corridor in the near future due to its strategic location [ 1 , 2 ]. Hence, among other social, economic, and political factors, Pakistan needs to ensure its energy supplies meet the direct and indirect demands of the country not only for maintaining economic growth but also for supporting regional and global economic initiatives. The vast deficit between demand and supply of electricity recorded in 2009–2010 was 26.82 %. This figure has increased up to 50 % during the summer of 2012 [ 1 ]. A routine problem is that electricity supply cannot be maintained during peak hours, resulting in frequent power shutdown (load shedding) of 13–14 h in urban areas, and 16–19 h in rural areas. As a result, many entrepreneurs and industrialists have invested and moved their businesses to neighboring countries [ 3 ]. Hence, short- and long-term measures are required to solve the existing energy problems. The present state of Pakistan’s energy resources is summarized (Fig.  1 ). It can be seen that indigenous energy sources mainly consist of oil (38 %), hydro (32 %), natural gas (27 %), and coal (3 %) [ 1 ].

Distribution of indigenous energy sources available in Pakistan [ 1 ]

Sustainable supply of energy to meet the current and future domestic and industrial demands in Pakistan will rely on full-scale generation from the different energy sources in order to make significant contributions to the supply chain. Current energy generation has a huge financial burden on the country’s economy due to the importation of oil to support existing mix, and the situation is heightened by the rapid declination of domestic gas assets. According to the Board of Investment Pakistan, the installed power capacity is 22,797 MW. However, current generation stands between 12,000 and 13,000 MW per day, against peak a demand of 17,000 to 21,000 MW [ 4 ]. Figure  2 shows the average annual demand of electricity, which is increasing at a constant rate of 8–10 % annually.

Electricity demand and supply trends for Pakistan from 2010 to 2030 [ 5 , 7 ]

The acute shortfall and burden imposed by oil importation creates a huge economic constraint for the country [ 5 , 6 ]. Various efforts have been made by different governmental organizations and international bodies such as Asian Development Bank (ADB) and World Bank to stabilize the energy situation. They share similar objectives to enhance fossil fuel production for electricity generation. Unfortunately, governmental efforts to address concerns relating to energy security, climate change, and sustainable development have been minimal. Whilst little effort is put into increasing domestic fossil fuel (gas, coal, and oil) based electricity, the search for alternative fuel sources which are more sustainable and renewable should be a major national priority. Renewable energy in Pakistan was reported to be <1 % in 2010. However, Pakistani government has targeted to achieve 5 % of renewable energy by 2030 [ 7 , 8 ]. The article reports on the potential and exploration of renewable energy as a major contributor to future sustainable energy pursuits in Pakistan.

Renewable energy potential in Pakistan

Pakistan has four main renewable energy sources. These are wind, solar, hydro, and biomass. These resources have a significant potential to provide solutions to the long-lasting energy crisis in Pakistan [ 8 ]. Hence, a steady development of these resources is a crucial step to overcome the existing energy challenges in an environmental friendly manner. Among the different renewable energy sources, solar energy has received the most research attention [ 9 – 16 ]. Sheikh [ 13 ], for instance, evaluated the potential of solar photovoltaic (PV) power generation capacity with 14 % efficient PV panels over area of 100 km 2 , which is 0.01 % of total land area of the country. From the results, it was concluded that covering 100 km 2 area of land with PV panels can produce energy equivalent to 30 million tons of oil equivalent (MTOE) in Pakistan. Gondal and Sahir [ 15 ], considered 0.45 % of urban regions for PV installations to estimate the total energy generation capacity based on solar PV system. A survey conducted by Hasnain and Gibbs [ 16 ] showed that the interior part of the county consists of mainly agricultural land, which is appropriate for the development of biomass feedstock, whereas northern and southern corridors have a significant potential for hydro, wind, and solar. This finding is useful as it might possibly improve the diverse energy supply market and decrease the dependency on imported fuels and environmental pollution. Figure  3 shows the entire spectrum and end-uses of alternative sources which are the best options to meet basic requirements of energy needs, with various employment openings, local manufacturing.

End-uses of renewable energy resources

It has been projected that Pakistan will contribute up to 10,000 MW to its energy mix through renewable energy resources by 2030 [ 17 ]. Therefore, timely and appropriate progress to exploit the potential of different natural energy resources will have a tremendously influence in meeting future projections.

Wind energy

The development and use of alternative energy resources have been a major endeavor since 2003. The Pakistani government has set up a recognized body [ 17 ], to coordinate efforts in this area. This organization plays an important role in narrowing the gap between demand and supply of electricity by promoting the utilization of renewable energy. Pakistan’s Meteorological Department (PMD) has collaborated with the National Renewable Energy Laboratories (NREL), USA, to conduct a wind speed survey of 46 different locations in Sindh and Baluchistan provinces with height ranging from 10–30 m. The data from the feasibility studies were analyzed by Alternative Energy Development Board Pakistan (AEDB) [ 12 , 13 ], and it was found that a vast area of 9750 km 2 with a high wind speed was discovered and zoned as “Gharo-Corridor” as shown in Fig.  4 . The area has a significant potential to produce around 50,000 MW of electricity. However, due to the occurrence of other economic activities, only 25 % of the area can be utilized with a production potential of 11,000 MW [ 12 , 18 ].

Wind mapping stations in Sindh with a potential to produce 11,000 MW at a height of 50 m [ 12 ]

Moreover, significant wind speeds were identified in the costal part of Baluchistan, particularly in Swat and some of the Northern areas. Out of 42 examined sites, seven have a capacity factor ranging from 10 to 18 % and are appropriate for Bonus wind turbines (Model 600/44 MK IV) [ 19 ]. However, the potential of these sites is still being explored although the capacity is not enough to contribute to the national grid. NREL, together with the United States Agency for International Development (USAID), has identified a total gross wind resource of 346,000 MW in Pakistan, where approximately 120,000 MW can be technically exploited to power the national gird [ 20 ]. Recently, a wind project with 500 MW capacities has been completed in 2013 [ 17 ]. In addition, more than 18 wind turbine companies are approaching AEDB to install 3000 MW wind project [ 21 ]. At the moment, the first phase of the Zorlu wind project generating 6 MW is in operation whilst a 56 MW plant is yet to be installed. Different wind power projects with a cumulative capacity of approximately 964 MW are at different phases of construction and would be completed in the near future. The Pakistan Council of Renewable Energy Technologies (PCRET) has installed nearly 150 small wind turbines ranging between 0.49 and 9 kW with a cumulative power output of 160 kW at the different areas of Sindh and Baluchistan, powering 1569 homes including 9 security check posts [ 22 ]. Also, thousands of small wind turbines with a capacity of 300–1000 W have been installed by different Non-Governmental Organizations (NGOs), electrifying rural areas of Sindh province. Most recently, three villages of Baluchistan have been powered using a wind/PV hybrid system [ 1 ]. With further investment and development, wind energy could become a major component of sustainable energy future in Pakistan.

Solar energy

Solar is believed to be one of the most endowed renewable energy sources. It is reliable and capable of producing substantial amount of energy without posing adverse impacts on the environment. Generally, PV cell and solar thermal conversion systems are used to capture sun energy for various applications in rural and urban areas. PV technology is capable of converting direct sun radiation into electricity (Fig.  5 ). Solar thermal technology uses thermal solar collectors to capture energy from the sun to heat up water to steam for electricity generation [ 23 , 24 ].

A schematic drawing of the mechanism of operation of solar photovoltaic systems

Pakistan with a land area of 796,096 km 2 is located between longitudes 62° and 75° east and latitudes 24° and 37° north [ 25 ]. This unique geographical position and climate conditions is advantageous for the exploitation of solar energy. Almost every part of the country receives 8–10 h day −1 high solar radiations with more than 300 sunshine days in a year [ 14 , 26 ]. Figure  6 illustrates the range of solar radiation levels per month in the major cities of Pakistan.

Minimum and maximum range of solar radiations in Pakistan [ 27 ]

The prospects of solar energy in Pakistan have also been widely investigated by many researchers [ 27 – 33 ]. Adnan et al. [ 30 ] analyzed the magnitude of solar radiation data for 58 different PMD stations, and the data showed that over 95 % of the total area of Pakistan receives solar radiations of 5–7 kWh m −2  day −1 . Ahmed et al. [ 31 ] and Ahmed et al. [ 32 ] used different methods to estimate and characterize direct or diffused solar radiations in many parts of the country. Khalil and Zaidi [ 33 ] conducted the survey of wind speed and intensity of solar radiations at different locations of country. Furthermore, the data was then compared among wind turbine (1 kVA), solar PV (1 kVA), and gasoline generator (1 kVA) (Table  1 ). The comparison showed that the wind and solar energy are most appropriate alternative resources. The study also found that the 1 kW of solar PV can produce 0.23 kW of electricity, which can significantly contribute to reduce load shedding in Pakistan. Hasanain and Gibbs [ 16 ] detailed out the significance of solar energy in rural areas of the country.

AEDB has estimated that Pakistan has about 2,900,000 MW (2900 GW) of solar power potential [ 18 ]. The main obstacles to full-scale exploitation include (1) high cost, (2) lack of technology, (3) socio-political behaviors, and (4) governmental policy conflicts.

In 2003, the chief minister of Punjab launched the “UJAALA” program, where 30 W PV panels were distributed among university students throughout the country. This program aimed at encouraging people to utilize alternative energy and cut-down their dependency on the national gird. Another project introduced by the government was the “Quaid-e-Azam solar park.” This solar park is built to produce 2000 MW of electricity by 2015 [ 23 ]. It is projected that the largest solar photovoltaic electricity production will be established after 2020 [ 1 ]. PCRET has set up approximately 300 solar PV units of 100 kW capacities to power 500 homes, colleges and mosques, including street lighting [ 34 ]. AEDB has powered 3000 families by installing 200 kW PV system together with 80 W solar charged lighting systems [ 28 ]. Many NGOs are effectively working to install PV units in several parts of the country. The solar street lamps and solar charging lights for households are particularly of major interest. Pakistan has a target of electrifying approximately 40,000 villages via solar PV by 2015 [ 28 ].

Solar water heating

The solar water heating technology has been extensively applied in Pakistan with an annual growth rate of 245 % during the last four years [ 35 , 36 ]. AEDB has started a Consumer Confidence Building Program (CCBP) to promote solar water heating system in Pakistan. The main objective of this program is to create awareness and build-up consumer confidence thorough various incentives. At present, there are 55 companies importing solar geysers, including 25 local manufactures [ 37 ]. The main factors contributing to growth pattern are heftiness, affordability, technological reliability and increasing scarcity of natural gas. It is estimated that approximately 9500 of solar water heating units will be operated in the country by 2015, and projected to be 24,000 units by 2020 without any governmental subsidies [ 38 ]. According to Han et al. [ 39 ], utilizing solar water heating technology instead of natural gas or conventional sources has significant advantages on economic, environmental, and social sustainability.

Solar water desalination

Solar desalination is a new and cost-effective technology to remove salt and other minerals from water for daily life applications. The technology desalinates brackish water or seawater either using solar distillation or an indirect method whilst converting the solar energy into heat or electricity [ 39 – 41 ]. It is an environmentally advantageous and cost-effective technology; hence, it is much patronized by communities in rural regions [ 41 ]. Arjunan et al. [ 42 ] described the design layout and functioning principles of an installed solar water desalination unit in Awania, India. They reported that the distillation of brackish water using solar energy is an effective way to provide potable water for rural communities in arid and semi-arid zones. This makes it a potential technology to be employed in different areas of Pakistan where fresh water availability is limited such as Thar deserts and Cholistan regions. Most of the regions in the country have brackish subsoil water which is not appropriate for human and other living inhabitants [ 33 ]; hence, desalination by means of solar energy will be beneficial and sustainable in providing portable water for the rural areas of Sindh, Baluchistan, and Punjab [ 41 ] The government of Balochistan has installed two solar plants in Gawadar, comprising 240 stills and each plant has the capacity to treat up to 6000 g day −1 of sea water. Projects to develop the same solar plant system have been initiated in different areas of Balochistan and other province of Pakistan [ 41 ]. The Pakistan Institute of Engineering and Applied Sciences (PIEAS) has fabricated a single basin solar still with an optimized efficiency of 30.62 %, being comparable to stills used globally.

Industrial solar water heating

Apart from domestic use, solar water heating system is also used in various commercial and industrial applications including laundries, hotels, food preparation and storage, and general processing and manufacturing. In the textile industry for example, water heating for dyeing, finishing, drying, and curing consumes approximately 65 % of the total energy [ 14 ]. Processing and manufacturing industries also require water heating for various operations such as sterilization, distillation, evaporation, and polymerization. Solar thermal technology is one of the most effective solutions to achieve the desired temperature and productivity for the aforementioned applications [ 42 ]. Pakistan is the fourth largest producer of cotton in the world; hence, this technology will contribute significantly to meet the water heating requirements of the cotton industry sustainably. As a major contributor to the economy of Pakistan, the textile industry is facing serious challenges in maintaining the global environmental standards. The industry is energy intensive; thus, high energy costs and persistent shortages in demand and supply impact negatively on the production and competitiveness of the industry. Full-scale operation of industrial solar water heating systems would contribute significantly to resolved energy problems faced by the industry. Energy is a crucial commodity on the international market, and its production and competitiveness are the functioning indicators [ 43 , 44 ]. Water heating is an energy-intensive process and conventionally relies on the use of fossil fuels energy. Solar water heating technology can benefit textile industries in Pakistan by providing an economical choice and a potential alternative to conventional fossil-based routes. Mass implementation of solar water heating systems will also reduce the environmental impacts associated with fossil fuels significantly. Muneer et al. [ 45 ] reported a payback period of 6 years for solar water heating systems incorporated into Pakistan textiles industries. Muneer et al. [ 46 ] also examined the prospect of solar water heating system on Turkish textile industry and estimated a payback period of ~5 years.

In view of the existing enormous potential, solar energy offers a promising and useful option for Pakistan in various commercial applications. The government needs to consider this technology as an important source of energy and promote massive and rapid investments to meet the supply of power in rural regions such as Balochistan, Thar Desert, and Cholistan, where grid connectivity is not accessible.

Biomass is typically derived from plants, animals, and agricultural wastes. It has been in used for various applications such as cooking, heat, fuel, and electricity in rural areas. Broadly, biomass is classified into four major groups: (i) agricultural waste, (ii) municipal solid waste, (iii) animal residue, and (iv) forest residue [ 47 ]. However, plants and animals are the main sources of biomass production. Almost 220 billion tons of biomass is produced globally each year from these sources, which is capable of producing substantial amount of energy without releasing high concentrations of carbon dioxide (CO 2 ) and other greenhouse gasses compared to fossil fuels [ 48 , 49 ]. Technically, they can be converted into different products either using thermochemical or biochemical methods. However, each of the conversion methods has its own pros and cons and process conditions such as characteristics of biomass feedstock and the desired end product [ 50 ]. Biomass could be appropriate and effective for commercial exploitation to generate electricity throughout world, due to its characteristics for high value fuel products [ 50 ].

Pakistan is an agricultural country where most of its population (around 70 %) lives in remote areas [ 2 , 51 ]. Hence, the availability of biomass is very extensive particularly from agriculture and livestock sources, including crop residues and waste from animals. These wastes amount to 50,000 tons day −1 of solid waste, 225,000 tons day −1 of agricultural residue, and approximately 1 million tons day −1 of manure [ 26 , 52 , 53 ]. Due to limited access to grid electricity and advanced technologies in these remote areas, most people are powered using traditional practices to fulfill their energy needs [ 1 , 2 ]. The sugar cane production industries produces bagasse as residue and this can be used to produce electricity to power sugar mills. Pakistan is the fifth largest country worldwide with sugarcane producing capacity of over 87,240,100 million tons. AEDB and NREL, USA, have estimated 1800 MW of power generation from sugarcane bagasse [ 17 , 54 , 55 ]. In the view of present energy scenario, the government has authorized sugar mill owners to sell their surplus power to the national grid station under the limits of 700 MW [ 50 ]. Moreover, urban areas produce large quantities of municipal waste which could possibly be digested to produce biogas, a renewable fuel further used to produce green electricity, heat, or as vehicle fuel and the digested substrate, commonly named digestate, and used as fertilizer in agriculture [ 13 , 52 , 56 ]. Figure  7 is added to explain working principles of biogas plant and applications of the produced products from the process.

Working principles of biogas plant and products application [ 56 ]

Biogas technology is highly advanced in China and India. More than 6 million domestic plants and nearly 950 small and medium units were installed in China by 2007, with an estimated production of 2 million m 3 of clean burning fuel to meet 5 % of its total gas energy needs [ 57 ]. A domestic biogas plant was launched in Tibet, China to explore the potential of cattle manure as feedstock, and this has been successfully implemented to improve the social and economic conditions of the region [ 58 ]. Efforts have been made to implement biogas technology in Pakistan. The first biogas plant was constructed in 1959 to process farmyard manure (FYM) in Sindh [ 59 ]. However, only in 1974 did the government of Pakistan start putting efforts into the implementation of residential biogas technology as an alternative source of energy. Plants with fixed dome, portable gas digesters, and small tanks/bags are the three most frequently used designs for biogas operating plants in Pakistan [ 60 ]. Currently, Pakistan has more than 5000 installed biogas plants to meet its domestic fuel needs. These plants are efficiently producing up to 2.5 million m 3 of biogas annually together with 4 million kg year −1 of bio-fertilizer [ 1 , 61 ]. The total estimated nationwide biogas potential is about 13–15 million m 3 day −1 [ 48 , 62 ]. There are opportunities to utilize biomass to produce biogas in the country’s remote regions through community biogas plant networks. Almost 57 million animals exist in Pakistan with an annual growth rate of 10 % [ 60 , 61 ]. The number is capable of producing enough biomass to generate over 12 million m 3 day −1 of biogas, which is sufficient to meet the energy needs of more than 28 million peoples in the rural areas, along with approximately 21 million tons day −1 of bio-fertilizer [ 47 , 63 ]. The collaboration between the Ministry of Petroleum and Natural Resources and the Directorate General of New and Renewable Resources (DGNRER) enabled the installation of more than 4000 biogas plants by 1974 to 1987. The plants were intended to produce about 3000 to 5000 ft 3 day −1 of biogas for lighting and cooking applications [ 63 ]. The scheme was divided into three stages. In stage 1, around 100 Chinese fixed-doom type plants were installed by DGNRER for demonstration purposes on grant-basis. In stage 2, the budget expenses for sponsorship was shared between the recipients and government, and in stage 3, all the economic sponsorships were withdrawn by the government though free technical supports continued but not reliable. However, the scheme failed due to the following reasons: (i) withdrawal of financial sponsorship by the government, (ii) technology was expensive to invest in and maintain, (iii) less technical awareness/training offered to the locals, (iv) lack of incentives, (v) low patronage or participation by the peoples, and (vi) ineffective demonstration [ 63 ]. Pakistan Council of Appropriate Technology (PCAT) also collaborated with GDNRER to develop a renewable energy technology strategy under the Ministry of Science and Technology. In 2001, PCAT merged with the National Institute of Silicon Technology to form Pakistan Council of Renewable Energy Technologies (PCRET). The council develops and disseminates biogas plants and other suitable options of renewable energy generation into communities in the remote areas [ 63 ]. Currently, approximately 1250 biogas plants have been installed with 50 % of the cost shared between the recipient and PCRET [ 64 ]. On top of that, three community based plants were installed in the remote parts of Islamabad, supplying energy to about 20 homes. Sahir and Qureshi [ 2 ] suggested that by installing pilot size plants, the available biomass can be used to operate high level biogas plants based on crops and dungs in the remote regions and street wastes in the urban areas. A biogas plant of 1000 m 3 capacity has recently been set up in the area of Cattle Colony, Karachi [ 64 ], and the trials and preliminary operations of the project were sponsored by New Zealand Aid (NZAID). There are 400,000 cattle in the area, producing wastes as the feedstock for the biogas plant. The initial generation capacity is ∿ 250 kW of power, and this will be increased to 30 MW with 1450 tons day −1 of fertilizer. Another biogas plant at Shakarganj Mill, with the capacity to produce up to 8.25 MW, is still under construction through the help of AEDB [ 65 ]. In addition, PCRET aims to provide alternate renewable energy system in rural households/villages by installing 50,000 medium-scale biogas plants at various locations in the country by 2015, with total annual biogas generation capacity of 110 m 3 [ 1 , 48 ]. Biogas productivity and quality is greatly influenced by the waste type, waste composition, and operational parameters such as temperature, feeding rate, retention time, particle size, water/solid ratio, and C/N ratio [ 66 ]. A temperature range between 30 and 40 °C is found to be optimal for high biogas production rate [ 67 ]. Feedstock available and batch loading are also important parameters for efficient biogas plant operation and help to maximize biogas yield. However, over or under loading of feedstock and water affects the overall efficiency of the process. It has been observed that carbon is consumed 25 times faster than nitrogen during anaerobic fermentation by microorganisms. Therefore, to meet this requirement, microbes require 25–30:1 carbon to nitrogen ratio with most of the carbon degraded within the minimum retention time [ 68 , 69 ]. Retention time refers to the digestion period for which the waste remains inside the digester. It is estimated to be average 10 days to few weeks depending on the waste composition, process parameters location of plant and atmospheric conditions [ 70 ]. The digestibility of waste is essential to promote its decomposition into simple organics and biogas products. The digestibility is usually enhanced by treatments using calcium hydroxide, ammonia, and sodium hydroxide. Water and urea can also improve waste digestibility [ 71 ].

Bioethanol and biodiesel

Pakistan has a considerable potential to produce biofuels such as bioethanol and biodiesel. The establishment of these biofuels will help reduce the oil demands of the country of which 82 % is sourced by importation. Various initiatives have been commenced by the government to increase biofuel production. Pakistan Sugar Mills Association (PSMA) is the agency responsible to develop bioethanol production in the country. Sugar millers offer incentives and materials such as fertilizers and pesticides to sugarcane growers to enhance crop production and maximize bioethanol production [ 14 ]. In 2007, only 6 out of 80 sugar mills in the country had the facilities to convert raw molasses [ 14 ]. With the existing production rate of sugarcane, Pakistan has the potential to produce more than 400,000 tons year −1 of ethanol. However, only about a third (120,000 tons) is produced currently [ 55 ]. Though several small projects have been carried out to evaluate the commercial applications of bioethanol, significant efforts to develop and promote bioethanol are still lacking due to ineffective government policies and lack of infrastructure for large-scale manufacturing. Also, a major portion of the limited bioethanol produced is traded in different forms such as alcohol and molasses.

A significant potential to produce biodiesel also exists in Pakistan through the use of castor bean, a self-grown crop found in different parts of the country. It is estimated to produce more than 1180 kg oil ha −1 , which is significantly higher than other biomass such as corn (140 kg oil ha −1 ), soybean (375 kg oil ha −1 ) and sunflower (800 kg oil ha −1 ) [ 14 ]. Due to its high oil content, castor bean can be a promising alternative feedstock for biodiesel production. Castor oil has the advantage of being soluble in alcohol under ambient temperature conditions, and this is beneficial to biodiesel production. It is an untapped resource in the country; thus, utilization for biodiesel production will not only contribute to meeting the energy demands of the country but also emerge as a value-adding process that can promote economic, social, and environmental sustainability of the country.

Hydropower in Pakistan

Water is one of the most vital constituents that support all form of life on earth and offers various other services such as power generation [ 72 ]. Hydropower relates to the generation of power from dropping water [ 73 ]. The kinetic energy present in water dropping from elevated levels can be transferred into mechanical power via hydropower turbine and then to electricity using an electric generator (Fig.  8 ). The output of electricity is directly proportional to the elevation of moving water (pressure) and flow rate [ 74 ].

Design and operating mechanism of a hydropower plant [ 74 ]

Based on the flow of water, hydropower power plants are classified into small and large. Large hydro power plants require large dams together with water flow control mechanism [ 75 , 76 ], whereas small hydro power plants (SHPPs) are used to extract energy from low volumes of water flow such as canals, rivers, and streams [ 74 ]. SHPPs are run-of-river systems, and thus do not require any extensive structures such as dam to store water, leading to significantly low environmental impacts [ 77 , 78 ]. Hence, SHPPs are considered ideal renewable energy generation. Hydropower is one of the most established and reliable renewable energy, contributing approximately 20 % to worldwide energy market [ 14 ]. Hydropower plays a leading role in the total energy mix of several countries in the world. Norway accounts for more than 95 % of its power generation from hydropower and Brazil is almost 88 %. Similarly, Canada produces 70 % and Austria produces 65 % of hydropower to meet their energy needs [ 14 ]. India incorporated domestic fluvial systems by integrating its main rivers to improve hydrological control and to increase their hydropower production to 54,000 MW in 2012 [ 78 , 79 ]. Hydropower is also a major energy source in China, and it is projected to contribute 27,000 MW of the total energy by 2020 [ 79 ]. The technology is ongoing in 27 countries in Asia, and countries such as India, Iran, Bhutan, Japan, Kyrgyzstan, Tajikistan, Turkey, Vietnam, and Pakistan [ 79 , 80 ].

Hydropower is a major source of renewable energy in Pakistan with a great potential for SHPPs especially in locations between the Arabian Sea and mountainous areas such as Hindu Kush, Himalayas, and Karakorum. These features offer enough potential energy to the falling water to develop a maximum pressure [ 81 ]. Moreover, major rivers such as Sutlej, Ravi, Chenab, and Jhelum, falling into Indus River can be explored for power generation [ 5 , 82 ]. The power generation capacity of SHPPs for the above sites is 2250 MW [ 78 ]. Pakistan has 18,502,227,829.8 m 3 capacity to store 13 % of its annual river flow whilst the rest of the water directly flows down to the Arabian Sea [ 5 ]. Therefore, additional water storage capacity (such as dams) will be obligatory for future sustainable irrigation and electric power generation. In Pakistan, the total estimated hydropower generation is over 42,000 MW, but unfortunately, only 16 %, amounting to around 6758 MW, has been technically exploited so far. Ninety percent of this comes from hydropower resources in the northern parts of Pakistan [ 1 , 14 ]. Figure  9 shows current operational hydropower projects in Pakistan also shows the respective projects that will be completed by 2015 to bring the installed capacity to over 8000 MW.

The major hydropower (HP) projects in service with installed capacity and under construction with proposed capacity in Pakistan [ 5 , 88 ]

In addition, WAPDA have completed a feasibility study of run-of-river hydro projects with combined installed capacity of approximately 21,000 MW at various locations in the country. This includes Bunji (7100 MW), Tarbela fourth extension (1399 MW), Kohala (1095 MW), Lower Palas Valley (660 MW), Mahl (599 MW), and Lower spat Gah (495 MW) [ 14 , 81 ]. Apart from these run-of-river projects, there is also a high potential for large-scale reservoir projects (dams) including Diamer Basha (4400 MW), Dasu (4250 MW), Munda (735 MW), Kurram-Tangi (80 MW), and Kalabagh dam (KB) (3600 MW). Apart from electricity generation purposes, dams are also used to control flood in Pakistan. One of the dams used for that purpose is Kala-bagh (KB). At the provincial level, there are some objections for its construction; however, the perception has changed when the dam was used to control flood and saved lives during 2010’s flood [ 83 ]. On that incident, over 2000 people were killed; $ 9.7 billion loss of economy and more than 20 million people were highly affected in terms of their lives, homes, and crops [ 84 , 85 ]. Sindh and Khyber Pakhtunkhwa provinces were the worst affected, those suffered immense losses [ 86 ]. This massive destruction resulted long-lasting impacts not only on social human life and economy but it has also resulted in destruction of natural environment posing land erosion, killing of wildlife and other natural resources [ 87 ].

The feasibility study of the KB dam showed the construction of a 260-ft high rock-fill dam that would be able to store approximately 7,400,891,131.92 m 3 of water [ 83 ]. The dam consists of two spillways for effective distribution of flood water for instant and appropriate water disposal. During probable floods, these spillways are able to discharge more than 2 million cusecs of water [ 83 ]. The mean annual river flow at KB is high, approximately 111,013,366,978.8 m 3 due to the additional nullahs and other tributaries that join the Indus River between KB dam and Diamer Bhasha dam. So, the approximate volume of flood to be managed at KB dam is around 2,200,000 cusecs [ 88 ]. Therefore, the development of KB dam is important to the government for flood management which capable in preventing future flood risks and combat energy crisis. To realize the full benefits of hydropower generation systems in Pakistan, crucial policy reforms are obligatory to develop hydropower by enhancing sustainable generation capacity.

Conclusions

Energy is crucial to the socio-economic development of all countries. A steady transformation is being observed throughout world from primary energy supplies based on conventional sources to renewable resources. Pakistan continues to formulate efforts towards renewable energy endeavors. However, with the current gap between the demand and production of power in Pakistan, which is approximately 5000–8000 MW with a constant increase of 8–10 % per annum, and the heavy dependence on limited fossil fuel resources, renewable alternatives which are able to commercially support conventional energy options must soon be in full-scale operation. Wind, solar, hydro, and biomass are the resources that are abundantly present in Pakistan. In Table  2 , the energy generation capacities of these resources stand at 120,000 MW for wind, 2,900,000 MW for solar, 5500 MW for biomass, and 42,000 MW for hydropower [ 1 , 14 , 18 , 20 ]. This creates a significant potential to overcome existing fuel needs in the country. This potential capacity is fairly distributed among the different provinces. Sindh is endowed with wind potential in the South, Baluchistan is rich with solar potential in the West, and Khyber Pakhtunkhwa is rich with hydro in the northeast area. Therefore, existing potential of renewables can be explored in four distant regions for power generation, water/space heating, engine fuel, and stand-alone power systems (SAPS). Though different efforts have been made to address the roadblocks which renewable energy technologies (RETs) face, the development has not been completely viable due to social, technological, economical, and informational hindrances. These concerns are the prime deterrents in the development of renewables. The country’s future energy should come from a balanced mixture of all these resources to steadily decrease its reliance on imported oil. The importance should be given to more rapid and targeted advancement of hydropower as large potential exists in country and most of feasibility studies have been concluded [ 14 , 81 ]. The supply of electricity from wind to grid has already started in 2014. However, it is still a challenge due to some impediments such as absence of infrastructure (e.g., large cranes, road network) and inadequate grid integration ability. Therefore, it is necessary to address these challenges by prioritizing the provision of these facilities. The economical and user friendly solar cookers, solar water heaters, and solar dryers should be progressed, as instantaneous integration approach can have insightful influence on the overall energy demand in Pakistan. The frequent public demonstrations and official campaigns must be carried out to educate the general public regarding environmental and commercial benefits of green energy, which will boost up the acceptability of those facilities. Besides, the specific feasibility studies should be conducted for the installation of large-scale gird connected to solar thermal power stations. The renewable energy syllabus must be introduced from the primary to the university levels in the institutions to develop consensus in support of accepting renewables as energy sources in Pakistan. The graduate students should be sent to foreign institutions to acquire more knowledge on emerging renewable energy technologies. Policies for buying small scale renewable energy systems using a payable loan scheme for public should be framed. Security, law, and order situations in country must be addressed at priority basis to encourage the attention of the local and foreign investors to invest in renewable energy. The power demand of Pakistan is projected to increase up to 11,000 MW by the year 2030 [ 1 ]. Therefore, a more holistic approach by addressing all above mentioned issues are important to fully utilize the renewable energy potential to achieve a sustainable energy future of the country. A determined political will is the key to energy independence.

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This work has been supported by the Department of Chemical and Environmental Engineering, Universiti Putra Malaysia, Malaysia.

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Raheem, A., Abbasi, S.A., Memon, A. et al. Renewable energy deployment to combat energy crisis in Pakistan. Energ Sustain Soc 6 , 16 (2016). https://doi.org/10.1186/s13705-016-0082-z

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Energy crisis in pakistan and economic progress: decoupling the impact of coal energy consumption in power and brick kilns.

thesis statement on energy crisis in pakistan

1. Introduction

2. literature review, 3. data and methods, specification of econometric model, 4. empirical results and discussion, 4.1. exploratory data analyses and correlation, 4.2. stationarity testing, 4.3. cointegration testing for the variables, 4.4. results of quantile regression estimation, 4.5. estimation of quantile process, 4.6. estimates of symmetric quantiles and slope equality test, 4.7. estimates of cointegration regression technique, 5. conclusions and policy recommendations, author contributions, institutional review board statement, informed consent statement, data availability statement, conflicts of interest.

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Click here to enlarge figure

ECOPCCPSCCBKTOCC
Mean1.4394.4917.7838.163
Median1.5764.0917.9428.059
Maximum2.3238.6828.4169.931
Minimum−0.2060.5876.8816.970
Std. Dev.0.5681.4050.4160.766
Skewness−1.2200.595−0.8040.328
Kurtosis4.1474.7792.4342.255
Jarque-Bera14.5439.1675.8221.971
Probability0.0000.0100.0540.373
ECOG(1.000)
CCPS−0.384(1.000)
CCBK−0.2030.547(1.000)
TOCC−0.2510.7040.852(1.000)
VariablesADF (Prob. *)P-P (Prob. *)KPSS (Prob. *)
LevelFirst DifferenceLevelFirst DifferenceLevelFirst Difference
−5.742
(0.000)
−10.608
(0.000)
−5.881
(0.000)
−16.385
(0.000)
0.258
(0.000)
0.396
(0.006)
−0.890
(0.782)
−9.224
(0.000)
−0.432
(0.894)
−9.132
(0.000)
0.652
(0.000)
0.228
(0.008)
−1.228
(0.654)
−7.953
(0.000)
−1.118
(0.700)
−7.943
(0.000)
0.686
(0.000)
0.100
(0.000)
1.000
(0.996)
−3.531
(0.011)
0.685
(0.990)
−6.329
(0.000)
0.861
(0.000)
0.153
(0.005)
None *0.62560.15547.8560.002
At most 10.19914.98429.7970.781
At most 20.0914.77015.4940.832
At most 30.0080.3703.8410.542

None *0.62545.17027.5840.000
At most 10.19910.21321.1310.724
At most 20.0914.40014.2640.814
At most 30.0080.3703.8410.542
VariablesCoefficientsS-Errort-StatisticProb.
CCPS−0.4890.106−4.6010.000
CCBK−0.5400.305−1.7730.083
TOCC0.9550.2144.4530.000
C5.5221.9762.7930.007
Pseudo R 0.429M-dependent var3.439
Adj- R 0.401S.D. dependent var0.558
SE of regression0.896Objective6.109
Qua-dependent var1.543Restr. Objective6.632
Sparsity1.140Quasi-LR statistic2.901
Prob(Quasi-LR stat)0.000
VariablesQuantileCoefficientsS-Errort-StatisticProb.
CCPS
(Coal Energy Consumption in Power Sector)
(0.1–0.9)−0.8210.411−1.9950.052
−0.1840.100−1.8310.073
−0.5960.202−2.9490.005
−0.8610.347−2.4800.017
−0.4170.197−2.1160.040
−0.1420.004−34.8040.000
−0.3920.106−3.6890.000
−0.1470.076−1.9390.058
−0.1280.009−14.0100.000
CCBK (Coal Energy Consumption in Brick Kilns Sector)(0.1–0.9)−0.6110.201−3.0430.003
0.3410.1861.8330.073
0.8560.5111.6730.101
0.6540.2712.4140.020
−0.1630.005−31.4250.000
−0.4950.169−2.9240.005
−0.8850.336−2.6300.011
−0.8680.154−5.6260.000
−0.7230.212−3.4080.001
TOCC (Total Coal Energy Consumption)(0.1–0.9)0.5920.2472.3940.021
−0.6230.367−1.6960.096
−0.7980.343−2.3230.024
−0.5760.248−2.3200.025
0.6550.2942.2280.031
0.5570.2662.0900.042
0.1430.0463.0960.003
0.5330.1563.4150.001
0.5930.2042.9020.005
C (Constant)(0.1–0.9)0.3780.1692.2350.030
5.1282.0992.4420.018
2.0471.1111.8430.072
1.6380.4623.5430.001
2.0220.7662.6370.011
2.5580.8882.8790.006
3.2450.9913.2710.002
3.0291.9801.5290.133
3.2670.6225.2530.000
Symmetric Quantiles Test
Test SummaryChi-Sq. StatisticChi-Sq. d.f.Prob.
14.520160.560
0.1, 0.9CCPS−0.2910.1950.137
CCBK−1.4081.0810.192
TOCC0.7490.7010.285
C5.74504.3100.182
0.2, 0.8CCPS−0.1570.1640.336
CCBK0.2220.7000.750
TOCC−0.2610.4900.594
C0.9573.1890.763
0.3, 0.7CCPS−0.1310.1270.302
CCBK0.1090.5720.847
TOCC−0.2500.3900.521
C1.6432.6360.533
0.4, 0.6CCPS−0.0710.0880.418
CCBK0.3210.4050.427
TOCC−0.1990.2750.470
C−0.7511.7960.675
Test SummaryChi-Sq. StatisticChi-Sq. d.f.Prob.
21.971240.581
[0.1, 0.2]CCPS−0.1060.0840.208
CCBK−1.3720.7620.071
TOCC0.7460.4460.094
[0.2, 0.3]CCPS0.0640.0640.319
CCBK0.0320.3410.923
TOCC−0.0920.2320.689
[0.3, 0.4]CCPS−0.0770.0670.252
CCBK0.0420.3390.901
TOCC−0.0720.2260.749
[0.4, 0.5]CCPS−0.0740.0640.244
CCBK0.3260.3160.302
TOCC−0.2210.2110.293
[0.5, 0.6]CCPS−0.0020.0580.962
CCBK0.0040.2560.985
TOCC−0.0220.1760.897
[0.6, 0.7]CCPS−0.0170.0660.791
CCBK0.2530.2880.378
TOCC−0.0210.1970.915
[0.7, 0.8]CCPS0.0900.0880.310
CCBK−0.0800.3230.804
TOCC−0.0810.2410.734
[0.8, 0.9]CCPS0.0270.1050.796
CCBK0.2580.3660.480
TOCC−0.2640.2960.371
CCPS−0.6070.211−2.8760.006
CCBK−0.9690.257−3.7700.000
TOCC0.8070.2852.8280.007
C3.9731.2323.2240.002
R 0.296M-Dependent var1.743
Adj-R 0.able 8254S.D-dependent var0.566
S.E. of regression0.498S-S resid10.157
Long-run variance0.156
CCPS−0.5380.137−3.9050.000
CCBK−0.3560.103−3.4470.001
TOCC0.2980.1002.9660.004
C1.2220.2464.9530.000
R 0.575M-Dependent var1.559
Adj-R 0.428S.D-dependent var0.582
S.E. of regression0.383S-S resid3.806
Long-run variance0.402
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Rehman, A.; Ma, H.; Radulescu, M.; Sinisi, C.I.; Yousaf, Z. Energy Crisis in Pakistan and Economic Progress: Decoupling the Impact of Coal Energy Consumption in Power and Brick Kilns. Mathematics 2021 , 9 , 2083. https://doi.org/10.3390/math9172083

Rehman A, Ma H, Radulescu M, Sinisi CI, Yousaf Z. Energy Crisis in Pakistan and Economic Progress: Decoupling the Impact of Coal Energy Consumption in Power and Brick Kilns. Mathematics . 2021; 9(17):2083. https://doi.org/10.3390/math9172083

Rehman, Abdul, Hengyun Ma, Magdalena Radulescu, Crenguta Ileana Sinisi, and Zahid Yousaf. 2021. "Energy Crisis in Pakistan and Economic Progress: Decoupling the Impact of Coal Energy Consumption in Power and Brick Kilns" Mathematics 9, no. 17: 2083. https://doi.org/10.3390/math9172083

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