Energy crisis of Pakistan: Causes and solution

For the past few decades, the vices that accompany the much-dreaded phenomenon of power and energy crisis have plagued Pakistan with impunity. It seems as if there is no reprise for the 240 million residents of the country excluding the privileged segment of this third-world country from the daunting implications of the so-called power management system devised by the high-ups occupying a supreme position within the higher echelons of the energy distribution entities, enjoying a greater level of autonomy and range from being private and public sector enterprises, dubbed DISCOs and the all-reigning prudent regulatory body, NEPRA.

In retrospect, Pakistan’s woes intertwined with the energy crisis dates back to the era of the partition of the Indian subcontinent. The Indian subcontinent acted as a universal cohesive unit during the regime of the British monarchy that lasted for about a century and satisfied the demands of the local population irrespective of the demographics. In the decade leading up to 1947, the narrative of the local population to secure an independent homeland of their own garnered traction and finally in 1947, the British monarchy abdicated its jurisdiction and status that it enjoyed to harness to rule over the local population with an iron fists. The Indian subcontinent was demarcated into two distinguished regions Pakistan encompassing the region of West Pakistan and East Pakistan, modern day Bangladesh. The industrial units thriving in the region were also segregated to aid the two newly established states to attain some level of self-sustainability and endurance. However, the procedure involving the demarcation of the industrial and energy assets that play a pivotal role in the progressing economy of a specific country was marred by controversies. Pakistan inherited 34 industrial units out of 921 industrial units based in the United Indian subcontinent. Pakistan’s predicaments did not conclude out at this stage, as it inherited highly inefficient power-producing units capable of generating electrical power correlating to the mere official count of 60MW.

However, it’s not a wise and a viable approach to attribute the current-day energy crisis to the tattered power-generating prowess infrastructure that the nation inherited at its time of inception. After all, myriad states emerging from the ashes have managed to stun the world with their glamourized development in the economic and technological sectors. However, after the emergence of the country on the interface of the globe, the domestic figureheads of the country were unable to comprehend the severity of the energy crisis that was capable of ultimately crippling the economic and industrial sectors of the country. Much emphasis was paid to the development of the agricultural sector as it was deemed the power horse and the driving factor behind the economic development of the state. The government in the early 1950s devised a five-year plan that was a comprehensive report that aimed to identify the prospective industries and sectors of the state that required the much-cherished cash-inflow and subsidies. However, as time progressed by, the democratic government collapsed and General Ayub Khan assumed control of the reins that controlled the state machinery and mechanism. The era of the 60s is synonymous with incredible economic streaks and achievements. The true spirit of capitalism and private property was revived in the country and the infamous 22 families reaped huge capital gains primarily attributed to the policies formulated by the government. The power sector of the country was developed by employing a novel strategy i.e. public private partnership. The volumes of much coveted economic goals were met by channeling millions of dollars worth of aid that Pakistan received at the apex of the cold war for acting as a “trusted ally” of the USA in its crusade against communism. Much of the energy consumed by the general public during this era was generated by harnessing the prowess of water bodies. Development of numerous mega power generating infrastructures i.e. dams was initiated in the 1960s, notable among these projects are the Mangla Dam, Tarbela Dam, and Rawal Dam. During the 1970s the efficiency and the potential of nuclear power resonated with the then president and government of Pakistan and steps were undertaken to establish state-of-the-art and highly efficient nuclear power plants to curtail the economic woes of the general public. The development of commercial nuclear-powered plants alternated with the commencement of Pakistan’s nuclear program that aimed to develop a weapon of mass destruction to rival India’s nuclear program. The first commercial nuclear power plant was established in Karachi in 1972 and PAEC was entitled to overlook the day-to-day operations of the plant. In the 1990s the policies drafted by the government observed a paradigm shift in terms of reliance on thermal-powered power plants fuelled by furnace oil to spur out electrical power. In the 1980s, the then government extensively utilized the dams and other artificial bodies developed by the former administrations. In the 1980s 60% of the total energy generated originated from hydro-electric sources. However, the Benazir administration discarded the fourth-mentioned source of electricity due to extreme discrepancies in the domestic energy supply chain mechanism. In 1994, a mere 40% of the total population had active but interrupted access to electrical power.?The government deemed the production of electricity by employing thermal-powered plants that run on furnace oil as a viable option due to the feasibility and tendency of thermal plants to engender electrical power in a limited period. To meet an average shortfall of 2000MW of electrical power, the government ramped up its efforts to expand the scope and contribution of thermal-powered plants in the national grid system. This was undoubtedly a short gain policy aimed to curtail the ever-soaring power deficit. The dependence of the power-producing units solely on furnace oil did manifest into an apocalypse a few years later.

Currently, the energy sector of the country is in tatters and shackles. The energy crisis, running rampant these days has been aggravated due to a host of implications. First of all, to understand the current day energy crisis one has to take a trip down memory lane and connect a few dots. As mentioned earlier Pakistan’s energy sector’s dependency on furnace oil sky-rocketed during BB’s and Nawaz Sharif’s administrations, and the economic meltdown of 2008 further compounded the energy crisis of Pakistan due to record high price of natural commodities produced by petro- states. The audience might be able to reminisce about the era of the late 2000s when power outages had evolved into a new norm and the local population residing in both urban and rural regions of the state had to endure the haunting effects of load shedding, an energy conversation mechanism that upon being utilized warrants the availability of electrical power at peak and pivotal segments of the day while the citizens have to brace up for interrupted electrical supply at off-peak hours. However, the energy management system was in dire straits and the local population opted for alternative resources to keep the power on. Energy shortfall due to inadequate utilization of energy-producing units is one aspect of an inefficient energy management system, the sub-par power distribution system is also at fault when discussing the energy crisis. The power loss incurred by the national grid due to the ancient power distribution system and the criminal act of power theft ranged between 25-35% in 2013, and in fiscal terms, it was equivalent to 16 rupees per unit. The power loss due to faulty transmission lines currently stands at 18% according to a report circulated in 2022. The unwillingness of power distribution companies to install and lay a novel network of power transmission lines across the country can be attributed to financial restraint and the congested residential blocks and neighborhoods. ?Another metric that can be utilized to gauge the severity of the energy crisis is circular debt, a term coined by experts that depicts the fiscal outlay of the energy management system. As of 2023, circular debt has ascended up to an eye-watering figure of PKR 2.28 trillion, a deficit that the government is incapable of retiring due to economic calamity that has befallen the state due to reckless schemes introduced in letter and spirit by successive incompetent administrations. The crippling energy management system has an insurmountable implication for the economic growth of our country. The recent black-out that gripped and engulfed the nook and corner of the country claimed a heavy toll on the productivity of the industries in terms of monetary gains, i.e. losses worth 100 billion were lodged by the industries.?

The solutions to our energy woes can be associated with diversified solutions. First and foremost, the government should enhance investment in green energy and slash duty on equipment capable of generating green energy i.e. solar panels and wind-powered turbines. Pakistan should purge itself of dependence on thermal-powered plants that require furnace oil for optimal performance and output. The recent fluctuation of oil prices taking shape in the international market due to the Russian-Ukraine conflict has exposed the vulnerability of various nations to oil and gas to meet their energy requirements. Pakistan has taken a positive step by diversifying its energy-generating assets by investing heavily in the development and incubation of nuclear-powered plants, solar and wind farms, and also the upcycling of energy distribution system to retard the power loss that is being enhanced by multitudes due to inefficient distribution system.