Energy Crisis and Pakistan:
There has been an enormous increase in the demand of energy in Pakistan as a result of industrial development and population growth, as compared to increase in energy production. The number of energy consumers has increased to 12.5 million: household 46 per cent, industry 28 per cent, agriculture 12 per cent, bulk supply nine per cent and commercial five per cent. For faster economic growth, Pakistan need more generation. Supply of energy is, therefore, far less than actual demand, resultantly crisis has emerged. An energy crisis can be defined as any great bottleneck (or price rise) in the supply of energy resources to an economy.
Pakistan’s energy infrastructure is not well developed, rather it is considered to be underdeveloped and poorly managed. Rapid demand growth, transmission losses due to out-dated infrastructure, power theft, and seasonal reductions in the availability of hydropower have worsened the situation. Consequently, the demand exceeds supply and hence load shedding is a common phenomenon in all cities. Energy crisis in Pakistan started in 2007 and in 2008 it took a serious turn. During 2009-10, energy supply and per capita availability of energy witnessed a decline of 0.64 per cent and 3.09 per cent respectively in comparison to previous year.
Pakistan needs around 15,000 to 20,000 MW electricity per day, however, currently it is producing about 11,500 MW per day hence there is a shortfall of about 4000 to 9000 MW per day. The power companies, circular debt is a big issue which has risen to 230 billion. Line losses, mainly theft, lone contributed Rs.125 billion to circular debt. It is better for the government to focus on curtailing power theft. Mere power tariff raise could not revive the power sector, as numerous hikes in the past have not resolved the chronic problems of circular debt and power theft.
Pakistan’s energy consumption is met by mix of gas, oil, electricity, coal and LPG sources with different level of shares. Share of gas
Pakistan’s energy infrastructure is not well developed, rather it is considered to be underdeveloped and poorly managed. Rapid demand growth, transmission losses due to out-dated infrastructure, power theft, and seasonal reductions in the availability of hydropower have worsened the situation. Consequently, the demand exceeds supply and hence load shedding is a common phenomenon in all cities. Energy crisis in Pakistan started in 2007 and in 2008 it took a serious turn. During 2009-10, energy supply and per capita availability of energy witnessed a decline of 0.64 per cent and 3.09 per cent respectively in comparison to previous year.
Pakistan needs around 15,000 to 20,000 MW electricity per day, however, currently it is producing about 11,500 MW per day hence there is a shortfall of about 4000 to 9000 MW per day. The power companies, circular debt is a big issue which has risen to 230 billion. Line losses, mainly theft, lone contributed Rs.125 billion to circular debt. It is better for the government to focus on curtailing power theft. Mere power tariff raise could not revive the power sector, as numerous hikes in the past have not resolved the chronic problems of circular debt and power theft.
Pakistan’s energy consumption is met by mix of gas, oil, electricity, coal and LPG sources with different level of shares. Share of gas