Importance Of Energy In Pakistan

Figure 1.1 shows production of electricity in Pakistan by different sources. 29.9% electricity is produced by hydro power plants, 35.2% from oil, 5.8% from nuclear, 29% from natural gas and 1% from other resources. It is widely admitted by all parties that Pakistan is entering a period where energy demand is exceeding readily available supply. Electricity supplies are already falling behind demand during peak periods which is leading to rolling blackouts. Pakistan is currently facing a serious energy crisis. Despite solid economic development during the past decade and consequent rising demand for energy, no worthwhile steps have been taken to install new capacity for generation of the required energy sources. Now, the demand exceeds supply

It seems that the government is looking at importing energy from Iran and Central Asian Republics and using indigenous sources, such as, hydral, coal, waste, wind, and solar power, as well as other alternate and renewable energy sources, besides nuclear power plants for production of energy. Unnecessary to say that if the country wishes to continue its economic development and improve the quality of life of its people, it has to make serious efforts towards framing a coherent energy policy. Part of the reason for Pakistan’s expanding appetite for energy is that its overall economy requires large amounts of energy to produce one unit of Gross Domestic Product (GDP), a measure known as ‘energy intensity’. However, much of Pakistan’s rural areas do not have access to electric power and about half the population is not connected to the national grid. Rotating blackouts (“load shedding”) are also necessary in some areas. In addition, transmission losses are about 30%, due to poor quality infrastructure and a significant amount of power

Economic growth can be measured in nominal terms, which include inflation or in real terms which are adjusted for inflation. For comparing one country's economic growth to another GDP (Gross Domestic Product) or GNP (Gross National Product) per capita should be used as these take into account population differences between countries. Energy crisis in Pakistan is badly affecting major sectors of the country including domestic, business, industrial, IT and textile sector. Lack of public sector investment is another major cause for slow progress in hydral and coal sectors. Private sector investment has been on the hold, as local banks are unwilling to finance any new project until the resolution of the circular debt. Independent power