Energy Crisis in

Pakistan
Group Members:
Hooriyeh Ali
Mahnoor Zehra

INTRODUCTION
Energy: It is the capacity of a physical system to perform work.
Energy Crisis: Any great bottleneck or price rise, in the supply
of energy resources to an economy.
Most vital instrument of socioeconomic development of a
country.
Large increase in its demand due to industrial development and
population growth.
No large increase in enhancement programs for energy
production.
Thus, there is a larger availability of supply of energy than
demand, resulting in a crisis.

MAJOR USES OF ENERGY

1. For industrial purposes (Running machinery
in factories and industrial units).
2. For agricultural purposes (farm machinery,
water management, irrigation, etc).
3. For transport.
4. For domestic use of citizens and for their
basic necessities.

BRIEF HISTORY

1960s:
Large civilian energy input and infrastructure built by Pakistani
military.
Financed from financial funds provided by various countries and
international monetary sources.
Huge chunk of energy produced byhydroelectric damsand
thermalpower stations.
1970s:
Pakistan's energy consumption expanded tonuclear
powersources with establishment and commissioning
offirstnuclear power station in Karachi.
1980s:
In the 1980s, the dependence on nuclear sources further grew

 1990s:
Pakistans largest and first ever program for energy conservation launched (by Benazir Bhutto/PPP
in 1994).
Program was to produce 13,000 megawattsand issue 70 Memorandum of Understandings (MOUs)
and Letters of Intent (LOIs) to Independent Power Producers (IPPs).T
This brought a decisive shift in Pakistan's diverse energy sources. [7]
In 1994, out of total installed capacity of 11000 megawatt, 60% energy was produced
fromhydroelectric power sources while and 40% was produced from thermal and nuclear sources.
This mix was reversed from 60:40 to 30:70 in favor of thermal capacity based on imported fuel
(reference to economic statistics given be Sartaj Aziz).
This meant that energy policy depended less on renewable energy sources and dependence on
imported oil increased.
This created permanent fault in the country'senergy conservation system (e.g. by 1995, only 27
IPPs were able to generate 6,335 megawatts of electricity.
The ratios was stabilised in 1998 by policies established by PM Nawaz Sharif.
2000s:
In 2001, the military governmentled byPresident Pervez Musharraf andPrime MinisterShaukat
Aziz did not as such add any new capacity to the energy system.
However, it did contribute to the growth of domestic demand for electricity through large-scale
provision of bank loans for the purchase of air-conditioners and home appliances (share of
domestic energy consumption had jumped to 46% of the total by 2008).

AUTHORITIES AND INSTITUTIONS

Government of Pakistan
Ministry of Water and Power
Alternative Energy Development Board
(for renewable energy).
Energy Corporations
Electricity and Energy Corporations in Pakistan (e.g. K-Electric)
Industrial Energy Sector
Electricity Sector in Pakistan (dominated by WAPDA and KElectric).
Energy and Power Regulatory Authorities
Water and Power Development Authority (WAPDA)
National Electric Power Regulatory Authority

ENERGY POLICIES AND OVERVIEW

2005 - 2010:
Prime MinisterShaukat Aziz announced long-termenergy securityprogram, aimed
at developing the power infrastructure from all energy sources (2005).
This policy relied onprivatizingthe energy sector by international mega energy
corporations.
The consequence of this program was that it aimed to raise dependence on
imported oil from the Arab countriesfor power generation (increased by 50.1% by
2013.
PM Shaukat Aziz held conversation with the officials of theSaudi Ministry of
Petroleumand invitedAli Al-Naimi(Saudi Arabian Minister of Petroleum and
Mineral Resources) to invest in the country's energy sector (2006).
PM Shaukat Azizallocated Rs.12.5 billion for power production-related projects
which remained unutilised (2007).
In his last policy statement,hefurther called for banning neon signs and lights,
and to close market places by 9PM. This was met with harsh resistance by the leftwing parties, such asPPP,Communist Party and labour unions.

 2010 2013:
After general elections in 2008, mismanagement and weak policies led to
intense repetitive cycle ofloadshedding in the country.
A massive demonstration against loadsheddingand growing power shortages led
to PM Yousaf Raza Gilaniannouncing the "energy policy" on 22 nd April 2010.
Policy was announced after thePM held a three day national energy conference
inIslamabad with energy experts. They discussed the causes of the power crisis
inPakistanand possible steps to relieve it.
Neon lightsandsignswere again banned and the official weekend was extended
from one to two days in an attempt to conserve electricity. Under this policy,
several attempts were made bythe government toprivatize the energy sector.
Designed byFinance Minister Abdul Hafeez Shaikh, the programme failed to
resolve electricity shortage, which private energy companies failed to maintain
and upgrade despite being part of their contract.
After much criticism and public demonstration in 2012, thePPP government
decided tonationalize the energy sector and issued clear directives to regulate
the energy corporations to produce the power generations.

 2013 Present:
Policy drafted for the term of 2013-2018 termed as ambitious.
Policy aims to achieve goals of social development and prosperity for the
country, highlighted earlier as Roshan Pakistan in PML-Ns manifesto.
Power sector subsidy would be phased out till an end to it, while an end to
load shedding would be made possible till 2017 and surplus electricity in
2018.
Privatisation of government owned power plants and few power distributing
companies, bringing double digit cost of power generation to a single digit.
Restructuring of Water and Power Ministry, National Electric Power
Regulatory Authority (Nepra), Oil and Gas Regulatory Authority (Ogra), etc.
Adjustment of outstanding dues owned by the government owned and
privately owned bodies through federal adjusters.
Formation of regional transmission and power trading system.
Pakistans Ministry of Water and Power developed this energy policy to
support the current and future energy needs of Pakistan.

ENERGY SECTOR IN PAKISTAN

Underdeveloped and poorly managed.

Severe energy crisis.
No serious efforts have been made to meet the
growing energy demand and to install new capacity
of energy generation.
Rapid demand growth, transmission losses due to
outdated infrastructure, power theft, and seasonal
reductions in the availability of hydropower have
worsened the situation.

SOURCES OF ENERGY IN PAKISTAN

Non-renewable resources (Fossil Fuels)
a) Petroleum products
b). Natural Gas
c). Coal
Renewable Resources
a) Hydro power
-Current Hydropower stations
-Potential Hydropower stations
Alternative Energy Sources
a). Wind
b). Solar
c). Agricultural biomass /biodiesel
d). Tidal
Nuclear

MAJOR ENERGY RESOURCES OF PAKISTAN

DEMAND FOR ENERGY IN PAKISTAN

Pakistans energy consumption is a mix of gas, oil, electricity,
coal and LPG sources with different level of shares.
Figures of 2010 show energy consumption in Pakistan as the
following:
Household sector 44.2%
Industrial sector 31,1%
Agericulture 14.3%
Government sector 7.4%
Commercial sector 5.5%
Street lights 0.7%

SUPPLY OF ENERGY IN PAKISTAN

Pakistan needs around 15,000 to 20,000
megawatts of electricity per day.
However, currently we are able to produce
only 11,500 megawatts per day.
Thus there is a shortfall of about 4000 to 9000
megawatts per day. This shortage is badly
hampering the economic growth of the
country.

TEN YEARS OF ENERGY CONSUMPTION

TEN YEARS OF ENERGY CONSUMPTION

ENERGY MIX IN PAKISTAN (1984

2004)

CAUSES OF THE ENERGY CRISIS

Economic & Political Instability (affects economic growth and GDP).
Mismanagement of energy resources due to lack of integrated energy
planning and demand forecasting, and absence of a central and
focused entity to be responsible for the Energy Sector.
Fluctuation of oil prices in international market (WAPDA & KESC
purchase expensive oil and transfer its cost to customers).
Faulty distribution system (15% - 20% wasteage due to poor
distribution system and poor infrastructure).
Aging of equipment.
Silting process (naturally caused process reducing storage capacity of
reservoirs).

 Imbalanced energy mix, with heavy reliance on gas

(47.5%) and Oil (30.5%). 72% imported.
Non-utilization of vast indigenous resources e.g. Thar
Coal and Hydel potential.
Lack of effective project structuring, planning and
implementation of undentified and viable projects.
Inadequate primary energy sources or access to their
local availability / development.
Circular debt (causes less production of electricity).

IMPACT/CONSEQUENCES OF
THE ENERGY CRISIS

Economic Factors
Agriculture Sector
Industrial Sector (negatively affects the industrial sector, as minimal
supply of energy resources to industrial sector leads to low ,affecting
economic growth and GDP).
Unemployment (due to less economic activity, as minimum supply
would lead to less economic activity).
Adversely effects the education system.
Higher electricity price. Due to insufficient supply and high cost of
production, customers end up paying high prices of electricity
Adverse effect on economy.
Social Issues
Poverty

CONCLUSION
Energy Crisis plagues all of Pakistan in terms of
economy, industry, agriculture, inflation, poverty
and society.
It is hampering national progress drastically.
However, these problems can be overcome by
drafting effective policies which focus on the
issue at hand, and their proactive
implementation.
It is also the responsibility of the citizens of
Pakistan to utilize the available energy astutely

RECOMMENDATIONS

For overcoming the current crisis of energy, Pakistan needs to take a

few steps.
New energy resources should be developed by:
- Tapping indigenous resources.
-Using renewable resources (water) by constructing new dams
and hydro power. plants.
- Import of natural gas.
-Utilizing alternative energy resources (wind power, solar, tidal,
biodiesel/biomass).
There should be judicious use of energy and preventing unnecessary
energy usage through:
-Electricity saving devices.
- Awareness campaign for energy saving.
-Reduction in unnecessary transportations.
- Installation of effective equipment/energy efficient in

 These steps may be taken in forms of 3

three types of plans:
- Short term plan
- Medium term plan
- Long term plan

SHORT TERM PLAN

Reactivate closed power generating units.
Increase number of independent power producing
units.
Improve the existing power distribution system.
Import electricity to fulfill energy needs of industries
and households.
Govt. should strictly check energy indicators regularly
to counter future energy crisis.

MEDIUM TERM PLAN

Developing and installing biogas, solar and
wind based projects for sub-urban and rural
areas.
Transformation of existing system (to
renewable energy resources).

LONG TERM PLAN

Installation of coal based power houses.
Exploration of more oil, gas andcoal
reserves .