Economic Issues of Pakistan

Energy Crises
 CURRENT SCENARIO

According to the Pakistan Economic Survey 2019-20,

 The installed capacity reached 37,402 MW in 2020, which stood at

22,812 MW in June 2013
 Maximum demand 25,000 MW
Transmission Line Capacity 22,000 MW. This leads to a deficit of
about 3000 MW when the demand peaks.
Pakistan Fuel-mix
 Furnace Oil: 14% of total
 Natural Gas: 31% of total
Coal: 16% of total
Hydroelectric: 29% of total
Nuclear: 4% of total Furnace Oil
Natural Gas
Renewable (solar & wind): 5% of total Coal
Hydroelectric
Nuclear
Renewable
 ORIGIN OF CRISES
HISTORICAL OVERVIEW
60s Construction of Hydro Projects
70s Addition of Nuclear Energy
90s
Total installed capacity 0f 11000 MW, ~~60% of the energy was
produced from thermal and nuclear sources
This mix was reversed from 60:40 to 30:70 in favor of the thermal
capacity based on imported fuel.

Energy Conservation Program (1994) 90s fuel mix chart

To produce 13000 MW & signed 70
MoU to IPPs. Hydro
10 independent power plant project Thermal &

initiated with the install capacity of nuclear

3158 MW with the investment of 4

billion$ -- expended 597MW
 Till, 2005: Supply is surplus to demand by 450 MW

2007: 2500 MW short fall

2010 : 5500MW short fall

In 2012 Pakistan’s first wind power

installation came online at the FFCEL
Wind Energy Project in Jhimpir.

CPEC and Energy Sector Projects

33 Billion$ projects, An Estimated 10,400 MW of electricity are slated for

Generation by March 2018 as the part of CPEC’s “ Early harvest” projects.
 REASONS BEHIND THE ENERGY CRISES
• Poor Governance
Fuel-mix : Cost Implecations

Approximately Rs. 12-17 per unit of oil power generation, compared to

hydro generation, which costs about Rs. 1 per unit

 Inefficient Policies
 Fluctuation of oil prices in market
 Inefficient distribution system
 Aging of Equipment
Line Losses
 Transmission Line Capacity
 Effects of Energy Crises
 Declining Industrial growth
Increasing production cost
Industrial shifts from Pakistan
to other countries.

 Unemployment
 Effect on agriculture sector
 Effect on Education System
Distance learning &
Covid-19
 Effects on Domestic Life
 Circular Debt
As of December 2019, the total circular debt of Pakistan is Rs
1,720 billion.

Subsidies : Burden on the economy of

Pakistan

Customer TAX Government Subs Distributor

Power Generation Oil

Companies Distributor
 ENERGY CRISES MEASAURES
1. Measures by the Government.

 Increase Transmission line capacity

Rapid Population Growth
 Move towards Renewable resources
Construction of hydro-electric dams
Kala Bagh Dam
Solar Energy
Easier Grid Access

 Eradication of line losses

(18.3 %)
Thank You