2012 

Institute of Business Administration

ENERGY CRISIS OF PAKISTAN: CAUSES & REMEDY

• Introduction• Objectives• Energy Resources of Pakistan• Ten Years of Energy Consumption• Causes of Energy Crisis• Recommendations • Conclusion

Contents

Introduction

• Energy has become an important requirement for the economic development of a country.

• It plays a pivotal role in the socio-economic development of any country.

Uses:• industrial and agricultural purposes • domestic use of the citizens

Objectives

• Why Pakistan is facing such a huge energy crisis of its history?

• What are the reasons behind this crisis?• Why Pakistan cannot able to utilize its natural

resources?• If Pakistan has abundance of coal then why

Pakistan importing coal?• Why half of the Pakistani population has no

access to electricity?

Energy Resources of Pakistan

Pakistan’s Conventional Energy Resources

Energy Type Potential Source

Crude Oil 339 million barrels recoverable reserves. Pak Eco Survey

Natural Gas 31,266 trillion cubic feet recoverable reserves. Pak Eco Survey

Coal 185 billion tones recoverable reserves. Pak Eco Survey

Hydro Energy 46,000 MW identified potential Govt. of Pakistan 2005

Nuclear power Nuclear power of capacity 800 MWe approx World Nuclear Association 2011

Pakistan’s Renewable Energy Resources

1. Wind Energy2. Solar Energy3. Bio-mass & Bio-fuels 4. Geo-Thermal Energy

Ten Years of Energy Consumption

Source: Pakistan Economic survey

• In 2007 Pakistan consumed up to 60.388 MTOE of energy in which 19.835 MTOE was imported in form of Oil and Coal.

• Relying heavily over imported oil and coal and shortage of natural gas in future will certainly chock the economic growth for many years.

Ten Years of Energy Consumption

Causes of Energy Crisis

1. Economic and Political instability. circular det, Effects our GDP & Energy growth…

2. Fluctuation of oil prices in international market.WAPDA & KESC purchase expensive oil and transfer cost to customers…

3. Faulty Distribution System.We waste 15 to 20 percent energy through poor distribution system, line loses…

4. Aging of equipment.Unable to generate required electricity…

5. Silting Process.It is a naturally caused process which reduces the storage capacity of reservoirs...

Recommendations

To overcome present energy crisis, Pakistan needs to take the following steps in form of:

1. Short Term Plan

2. Medium Term Plan

3. Long Term Plan.

1. Short-term Plan:

1. Increase the number of IPPs (Independent Power Producers).2. Reactivate the closed power generating units.3. Overhaul the existing poor distribution system.4. Import electricity to fulfill the current need for industries on ad hoc

basis. 5. Government should have strict check on energy indicators on

regular basis to counter such crisis in future.

Recommendations

2. Medium-term Plan:1. Transformation of existing system to renewable energy resources.2. Developing and installing biogas, solar, wind and micro hydro based

projects in villages.

3. Long-term Plan:1.  Developing and installing coal based powerhouses.2.  Initiate agreements for mega projects with the energy extensive countries

for sustainable energy resources. 3.  Explorations of more oil, gas and coal reserves.4. Provide incentives for up-gradation and training to the engineer for new

technology

Recommendations

• This study recommends Government of Pakistan to take strong steps to overhaul its existing infrastructure and transformed it to utilize renewable energy for future needs.

• Government should also take steps to utilize the coal reserves though it will give us energy for next 25 years.

Conclusion