Energy Crisis in Pakistan: Part One

Energy Crisis in Pakistan: Part One

The nexus between economic prosperity and self sufficiency in energy has become essentially vital for Pakistan. Today the energy crisis looming before us is the culmination of a long list of governmental failures, malpractices along with inefficient ways of consumption and a perpetually fragile economy. The futility of apparent counter measures can be attributed to slow or nonexistent exploration and exploitation of new resources; outdated administrative and technical systems; lack of tactful diplomacy at international level, all requiring immediate attention.

Presently, the demand-supply gap in the energy sector has reached one of its highest in the country. This gap subsequently produced huge shortage of power that has adversely affected the economy. The crippling economy was further damaged when many industrial units had to be shut down, rendering thousands jobless.

Consequently, this ongoing chain of crises is accelerating inflation. The government has intended to counter it with Rental Power Plants (RPPs) like the previous IPPs and to ease the burden on common man the authorities claim to be providing continuous subsidies in the power sector.

However, the constant trust deficit on the part of masses is not only due to the transparency issue of RPPs, it is majorly due to a constant increase in power failures and shortage, revealing an increase in the crisis instead of signs of recovery.

If we take a look at the factors contributing to this enormous problem, the first and foremost one comes out to be the absence of any long term planning along with constant application of such plans.

Sadly, the failures of previous governments to increase the supply of energy by new measures against the escalating demand are glaringly obvious. Small scale projects like the Ghazi Barotha only put a temporary halt to the arriving crisis instead of nipping it in the bud.

Secondly, the under utilization of available resources- especially hydroelectric one which can produce double the energy it is producing now- is another major setback. The government again fails or neglects to consider the shortages in winter and up-gradation of the hydroelectric and the thermal plants regularly.

Thirdly, the ‘circular debt’ is like an invisible impediment subtly fuelling up the crisis. It is an inheritance of former subsidies which the government failed to pay to the power companies, who in turn could not pay the oil and gas companies for supplies.

Add to this the fluctuating international oil prices, failing economy, the war against terrorism and decreasing Foreign Direct Investment (FDI) – worsened the problem and induced further power and imported oil shortage.

Subsequently, the political heads had to turn their eyes back to hydroelectric power generation. However, projects like Kalabagh Dam became victims of narrow mindedness and provincial prejudices which led to failure of consensus of opinion. Had the Kalabagh Dam been built on time, we would not be confronted with this crisis today.

Of the chronic factors, the heavy line losses plus the old and poorly maintained transmission system is a grave administrative and technical failure of public sector power companies. These line losses are comparatively very low elsewhere in the world.

Similarly, in the industrial and agricultural sectors which avail more than seventy percent of total power, the outdated techniques and malpractices of consumption waste more than a third of the consumed power.

Moreover, the theft of electricity, especially in urban areas has become a routine matter. Due to the decades old perception that this is a never ending crisis and no accountability whatsoever, people tend to use unfair means of obtaining electric power.

Last but not least, snail paced research, minimal exploitation of new energy reserves and exploration of new oil and gas field damages progress in the energy sector. Couple this with the never ending corruption and lack of implementation in government and power companies this crisis has become a consistent and self perpetuating one.

In the next issue we shall discuss the counter measures to the ongoing energy crisis in the country.

Posted by Momina Khan on Oct 19 2011. Filed under Opinion, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry