Energy Assignment

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ENERGY MANAGEMENT SYSTEM
Pakistan’s Energy Report
NAME: MUHAMMAD WASEEM
STUDENT ID: F2019198015

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TABLE OF CONTENTS
CHAPTER 1
1.1 Economic Survey 2006-2007 ------------------------------------------------------------------- 4
1.1.1 Oil ------------------------------------------------------------------------------------------ 4
1.1.2 Natural Gas ------------------------------------------------------------------------------- 5
1.1.3 Electricity -------------------------------------------------------------------------------- 5
1.1.4 Coal --------------------------------------------------------------------------------------- 6
1.2 Economic Survey 2008-2009 ------------------------------------------------------------------ 6
1.2.1 Oil or Petroleum Products -------------------------------------------------------------- 6
1.2.2 Natural Gas ------------------------------------------------------------------------------- 7
1.2.3 Electricity -------------------------------------------------------------------------------- 7
1.2.4 Coal --------------------------------------------------------------------------------------- 7
1.3 Economic Survey 2010-2011 ---------------------------------------------------------------- 7
1.3.1 Petroleum Products --------------------------------------------------------------------- 8
1.3.2 Natural Gas ------------------------------------------------------------------------------ 8
1.3.3 Electricity -------------------------------------------------------------------------------- 9
1.3.4 Nuclear Energy -------------------------------------------------------------------------- 9
1.3.5 Coal --------------------------------------------------------------------------------------- 9
1.4 Economic Survey 2012-2013 ---------------------------------------------------------------- 10
1.4.1 Oil ----------------------------------------------------------------------------------------- 10
1.4.2 Natural Gas ------------------------------------------------------------------------------- 10
1.4.3 Coal --------------------------------------------------------------------------------------- 11
1.4.4 Nuclear Energy--------------------------------------------------------------------------- 11
1.4.5 Electricity --------------------------------------------------------------------------------- 11
1.5 Economic Survey 2014-2015 ----------------------------------------------------------------- 11
1.5.1 Oil ------------------------------------------------------------------------------------------ 12
1.5.2 Natural Gas ------------------------------------------------------------------------------- 12
1.5.3 Electricity --------------------------------------------------------------------------------- 13
1.5.4 Coal ---------------------------------------------------------------------------------------- 14
1.5.5 Nuclear Power Plant --------------------------------------------------------------------- 14
1.6 Economic Survey 2016-2017 ---------------------------------------------------------------- 14
1.6.1 Electricity --------------------------------------------------------------------------------- 14
1.6.2 Oil ------------------------------------------------------------------------------------------ 15
1.6.3 Natural Gas ------------------------------------------------------------------------------- 15
1.6.4 Coal ---------------------------------------------------------------------------------------- 15
1.7 Economic Survey 2018-2019 ------------------------------------------------------------------ 16
1.7.1 Electricity ---------------------------------------------------------------------------------- 16
1.7.2 Oil ------------------------------------------------------------------------------------------- 17
1.7.3 Natural Gas -------------------------------------------------------------------------------- 17
1.7.4 Nuclear Power Plant ---------------------------------------------------------------------- 17
1.7.5 Coal ----------------------------------------------------------------------------------------- 18
CHAPTER 2
2.1 Energy Report by Ministry of Planning ---------------------------------------------------------- 20
2.2 Fuel Sector ------------------------------------------------------------------------------------------- 20
2.2.1 Challenges ----------------------------------------------------------------------------------- 21
2.3.2 Iran Pakistan Gas Pipeline Project ------------------------------------------------------- 21
2.3.3 TAPI Gas Pipeline Project ---------------------------------------------------------------- 21
2.3.4 Fuel Sector Reform Initiatives ------------------------------------------------------------ 21
2.3. Power Sector ---------------------------------------------------------------------------------------- 22
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2.3.1 Challenges --------------------------------------------------------------------------------- 23

2.3.2 Strategies and initiatives ----------------------------------------------------------23
2.3.3 Power Sector Reforms Initiatives -------------------------------------------------------24
CHAPTER 3
3.1 Energy Report by State Bank of Pakistan, 2012-2013----------------------------------------- 25
3.2 Power Sector ----------------------------------------------------------------------------------- 25
3.2.1 Challenges ----------------------------------------------------------------------------------- 25
3.3 The Role of CNG ----------------------------------------------------------------------------------- 26
3.4 Power Generation Cost ----------------------------------------------------------------------------- 26
3.5 Circular Debt ----------------------------------------------------------------------------------------- 27
3.6 Problem Solution ------------------------------------------------------------------------------------27
CHAPTER 4
4.1 TAPI Gas Pipeline Project -------------------------------------------------------------------------29
4.2 Development Background ------------------------------------------------------------------------29
4.3 Detail of TAPI Pipeline Project -------------------------------------------------------------------29
4.4 Construction ------------------------------------------------------------------------------------------29
4.5 Supply of Gas ----------------------------------------------------------------------------------------30
4.6 Financing ----------------------------------------------------------------------------------------------30
4.7 Contractors --------------------------------------------------------------------------------------------30
4.8 Benefits ------------------------------------------------------------------------------------------------30
CHAPTER 5
5.1 Asian Development Bank ---------------------------------------------------------------------------31
5.1.1 Background -----------------------------------------------------------------------------------31
5.1.2 Evolution in Circular Debt ------------------------------------------------------------------31
5.1.3 Inadequate Tariffs and Inefficient Subsidies ---------------------------------------------31
5.1.4 High Cost of Generation --------------------------------------------------------------------32
5.1.5 Unsustainable Losses ------------------------------------------------------------------------32
5.1.6 Weak Governance ----------------------------------------------------------------------------32
5.1.7 Lack of Integrated Planning -----------------------------------------------------------------32
5.2 Reforms -------------------------------------------------------------------------------------------------32
5.2.1 Reform 1 ----------------------------------------------------------------------------------------33
5.2.1 Reform 2 ----------------------------------------------------------------------------------------33
5.2.3 Reform 3 ---------------------------------------------------------------------------------------34
5.3 Impact of Reforms -------------------------------------------------------------------------------------34
References
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CHAPTER 1
1.1 Economic Survey 2006-2007
Pakistan’s Economy was growing with the average rate of 7.6% per year from 2003-2006 and
our government was trying to maintain it. Well, there is a strong relation between economy and
energy demand. At that time government was trying to increase energy demand for the comfort
of peoples. At that time the Pakistan was getting almost 75% of its energy from domestic
resources. While, In Pakistan energy sector depends on electricity, gas petroleum and coal. Our
economy is water based. The primary commercial energy supplies increased by 4.3% by to 57.9
million tons of oil equivalent (MTOE) during 2005-2006 as compared to 55.5 (MTOE) in 2004-
2005. Primary energy supply during 2005-2006 was slower due to some factors. These factors
were: (i) lower utilization of High-Speed Diesel in transportation, (ii) Sharp reduction in coal
imports by Pakistan Steel [1]. The decline in primary energy supply was compensated by
increasing 20.2% in Hydel generation. The share of natural gas in primary energy supplies
during 2005-2006 reached 50.4 percent followed by oil 28.4%, hydroelectricity 12.7%, coal
7.0%, nuclear electricity 1.0% and liquified petroleum gas 0.4% which shown in (Fig- 1.1)
Energy Utilization by Source

Coal Nuclear
7% 1%
Hydro Oil
13% 29%
Oil
Gas
Hydro
Coal
Nuclear
Gas
51%
Figure 1.1: Energy Utilization by Source 2005-2006.
1.1.1 Oil: -
During the first nine months of the years (2006-07), the utilization of petroleum
products in households’ sectors, transportations, industries and other government sector, showed
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sharp declines of 20.2%, 4.2%, 2.5% and 2.7%, respectively. The declines were mainly due some
reasons. (i) Availability of alternative and relatively cheaper fuels (natural gas and LPG) (ii) The
utilization of furnace oil in industry was decreased (iii) Massive increase of compressed natural
gas and natural gas in transport and low demand for JP-8 by defense [1] . On the other hand,
utilization in agriculture and power sectors increased by the percentage of 11.7 and 89.9
respectively. January 1,2007 it has been stated that almost 317.82 million barrels of recoverable
crudes oils are present in Pakistan. Furthermore, they stated that almost Pakistan’s crude oil
production was 66,485 barrels per day during July to March 2006-2007. While in 2005 the
production of crude oil was 65,385 barrels per day, which showed that almost 1.68% increase in
2006-2007.
1.1.2 Natural Gas: -

Pakistan has a well-developed infrastructure of transporting, utilization of natural gas and
distributing. Transportation, industrial, fertilizer, cement and commercial sectors had registered a
sharp increase in the utilization of gas during 2005-06. The utilization of gas in transportation
increased by 49.4%, while the industrial utilization raised by 29.4%, commercial sector increased
by 27.3% and household sector raised by 4.7%. during July to March 2006-2007. Our
Government tried to provide alternative of natural gas which is known as liquified petroleum gas
(LPG) to those areas where supply of natural gas was not technically feasible. During 2006-2007
the production of LPG reached at 1,650 M.T per day. LPG is generally used in cars, rikshaws,
pickups and even in motor-cycles where compressed natural gas (CNG) is not available. 5% of
custom duty was removed to enhance further availability of LPG. Almost 43,000 M.T LPG was
imported during 2006-2007. Government also tried to promote compressed natural gas (CNG) to
reduce pollution caused by vehicles. Almost 1,414 CNG stations were opened in 2007 in 85
cities of Pakistan and it also been stated that almost 1.35 million of vehicles were using CNG. In
this way Pakistan became the leading country in Asia and the third largest user of CNG in the
world after Argentina and Brazil. Rs. 60 billion invested in CNG sector during July to March
2006-07 due to which CNG sector produced 60,000 new jobs. During 2005-2006 first time in the
history of Pakistan liquified natural gas (LNG) policy was made. The government planned to
establish an offshore LNG import terminal at Port Qasim [1]. Between 2002 and 2005 the
worldwide demand of LPG increased by 40% because it is less intensive than oil and coal.
Pakistan has the world’s second largest pipeline network of the natural gas after the United
States.
1.1.3 Electricity: -
We observed that the household sector has been the largest consumer of electricity, which
consumed almost 44.8% of total electricity utilization, followed by agriculture 12.2%, industrial
29.4%, other government sector 7.2%, commercial sector 5.9%, and street lights 0.6%. In 2007 it
has been stated that capacity of electricity generation was 19,400 MW. Four major electricity
companies were involved, in which Water and Power Development Authority (WAPDA),
Chashma Nuclear Power plant, Karachi electric Supply Corporation (KESC) and Karachi
Nuclear Power Plant (KANUPP) were included. In which 6,463MW of electricity was produced
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through Hydel Power plants and 4,900 MW of electricity was generated by Thermal Power
Plants [1]. Electricity consumers increased day by day due to population growth and extension of
electricity supply. Till March 2007, the total number of electricity consumers was up to 16.7
million.
1.1.4 Coal: -
Pakistan has the one of the world’s largest natural resource of coal. Due to high demand of
electricity our government set an Energy Security Action Plan, in which they a target of 20,000
MW of power will be produced from coal by 2030 and 50% by 2050. During 2006-07 total
national coal production was 4.9 million ton. Brick Kiln industry was using 80% of coal that is
the main reason in reduction of power generation. Almost 80% of cement industry also switched
towards coal for heating furnace oil. In Thar coal field plant 1,000 MW of plant was working.
Furthermore, Sindh government was trying to promote coal plant and made a 250 MW of coal
power plant in Hyderabad.

The world Energy situation in 2008-2009 was very eventful because the price of Oil was
fluctuated. In Pakistan the energy mix utilization changes from few decades. The shares of Oil or
petroleum product was 29%, LPG was 2%, Coal was 14%, Gas was 40% and Electricity was
15%. Which is shown in figure 1.2.

LPG
Coal 2%
14%
Oil
29%
Oil
Electricity Gas
15% Electricity
Coal
LPG
Gas
40%
Figure 1.2: Energy Utilization by Source 2008-2009

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1.2.1 Oil or Petroleum Products: -

The utilization of petroleum product decreases in every sector of Pakistan except government
and power sector during July to March 2008-2009. The decline of petroleum product was due to
high prices of Oil. Crude oil recoverable reserves were 313million barrels in January 2009.
Which showed a negative growth of 52%.

Utilization of gas always remain different in every year. In this way, the utilization of gas in
transportation increased with the percentage of 27.1 July to March 2008-2009 because gas is the
cheaper source than oil. In industrial, fertilizer and commercial sector the growth rate increased
by 2.8%, 0.7% and 3.2% respectively. In cement and power sector gas utilization showed a
decline with 35.3% and 13.1% respectively. LPG contained almost 0.7% of country’s total
energy supply mix. LPG usage increased by 18.1% from last ten years. In Pakistan almost
32,621 Million Ton of LPG was imported during July to March 2008-2009. CNG usage
increased rapidly in vehicles because it is environmentally friendly and its price is much lower
than petrol. 2 Million of vehicles were converted oil into CNG. That time Pakistan was the
largest CNG using country in the world.
Utilization of electricity increased 0.7% in 2008-2009 as compared to last year. In government
sectors and all private sector showed that the utilization of electricity decreased due to load
shedding, and higher cost at electricity subsidy. To meet the current requirement of electricity
Pakistan government worked at different energy projects to produce 9.817 MW of electricity,
which will complete during 2001-2012. And from which 6,15 MW of electricity power plant
started in 2009, further more they planed that almost 4,039 MW of electricity will be supplied
during 2009-2011 [2]. The growth of electricity consumer increased in every year. In 2009, 17.7
million people were using electricity.
1.2.4 Coal: -
The production of coal decreased by 28.8% during July to March 2008-2009 as compared to last
year. Brick kiln industry was used 60.4% of total coal production and 37.3% of coal was used n
cement industry. Which showed that almost 9.7% shares increased in Brick kin industry and
0.3% shares increased in cement industry during July to March 2008-2009. Whole cement
industry was shifted from furnace oil to coal. 2,50 MW of coal power plant opened with the help
of china.

Energy security raised question in the world for downfall of global economy. The demand of
energy increased globally, for that they prefer to used energy mix instead of fuel, due to high
prices of fuel. Natural gas played an important role to fulfil energy demand for two and half year.
Energy is the key determinant of economic development and prosperity of society. The circular
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debt represents inefficiency in electricity sector and has increased to 1.5 times as compare to last
year. Due to high energy prices, shift from expensive imported fuel (oil) to indigenously
available alternative fuel (gas) has been seen, creating huge gap between demand and supply and
has compelled government to tackle this with load management strategy along with increase in
the prices. Pakistan consumed almost 63.1 million tons of oil [3]. Oil utilization share stood at
27.0% followed by gas 43.9%, LPG 1.5%, coal 11% and electricity 15.6% which is shown in
figure 1.3. Oil or petroleum showed a negative growth during July to March 2010-2011, while
coal and electricity growth increased by 10.29% and 2.8% respectively.

LPG
Coal 2%
11%
Oil
28%
Electricity Oil
16% Gas
Electricity
Coal
LPG
Gas
44%
Figure 1.3: Energy Utilization by source 2010-2011
1.3.1 Petroleum Products: -

As we mentioned before, during July to March 2010-2011 the utilization of fuel decreased by
0.97% as compared to last year. The utilization of petroleum product decreased in every sector
for example in agriculture it decreased by 18.2%, household 1.5% and power sector 5.7% etc.
while on the other hand petroleum product utilization increased in government and industrial
sector by 19.7% and 22.5% respectively. The recoverable crude oil reserves were 280.647
million barrels [3]. Which was 18.08-million-barrel increment during July to March 2010-2011
as compared to last year.

The utilization of natural gas in different such as power, agriculture, cement, industrial and
commercial sectors also decreased during July to March 2010-2011. Just two sectors showed a
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positive growth, these two sectors were transport and household by 14.3% and 0.75%
respectively. Cement sector showed a highest decline of 64.7% due to whole industry was shifted
to coal. The overall production of gas has increased to 1,109,930.16 million cubic feet during
July to March 2010-11 as compared to 1,109,360.24 million cubic feet in the same period last
year [3], showing an increase of 0.05%. The utilization of LPG increased by 0.6% in total energy
mix. 5,582.4 Million ton of LPG was imported during July to March 2010-2011. While on the
other hand government encouraged to use CNG in vehicles because it is nature friendly. Pakistan
is the first largest CNG using Country in the world. 3,329 CNG station were working. At the end
of March 2011 almost 2.5 Million vehicles were using CNG.
The utilization of electricity increased by 2.8% during July to March 2010-2011. While last year
it was increased by 5.2%. This modest increment is due to circular debt. Almost Rs 258.5 Billion
stuck at different energy sectors which increased the circular debt. Electricity showed positive
growth in industrial sector by 7.3% and except street light and agriculture sector it showed a
positive growth. With the expansion of the electricity network, the number of consumers has also
increased by 7,445 thousand since 2001-2002. During July to March 2010-2011, the growth of
consumers stood at 4.3% as it reached 20.1 million consumers as compared to 19.3 million in
same period last year. The share of domestic consumers remained 85.3% followed by the
commercial and agricultural sectors having 11.9% and 1.4% share, respectively. Domestic sector
is largest user of electricity of 42.9%, then industrial sector by 25.1% and afterward agriculture
by 12.3%.
1.3.4 Nuclear Energy: -

Pakistan Atomic Energy Commission (PAEC) is responsible for planning, construction and
operation of nuclear power plants. Presently, two nuclear power plants; Karachi Nuclear Power
Plant (K-1) and Chashma Nuclear Power Plant Unit-1 & 2 (C-1 and C-2) are in operation. K-1, a
Pressurized Heavy Water Reactor (PHWR), commissioned at Karachi in 1972 has completed its
design life of 30 years in 2002. After necessary refurbishments and up-gradations undertaken by
PAEC, K-1 is now operating on 15-years extended life at a power level of 90 MWe. K-1
generated 196.0 million kWh of electricity during the period July to March 2010-11, raising its
lifetime generation to 13.2 billion kWh. C-1, a Pressurized Light Water Reactor (PWR) located
in Chashma, with a gross capacity of 325 MW, has completed ten years of its safe commercial
operation in September 2010 [3]. C-1 generated 2063.5 million KWh of electricity during July-
March 2010-11, raising its lifetime generation to 21.7 billion kWh. The construction work on the
third nuclear power plant C-2 of 340 MW capacity has been completed. C-2 was connected to
the national grid for trial operation on 14th March 2011.
1.3.5 Coal: -
As we know that Pakistan has the huge resource of coal which is estimated about 185 Million
tons. Just two sectors are using highest amount of coal such as Brick Kilns by 56.5% and cement
sector by 42.7%. The share of coal decreased in power sector by 1.24% and Brick Kiln by 2.4%
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while the share of coal in cement sector increased by 3.1%. The supply of coal increased by 10.3
during July to March 2010-2011 as compared to last year. Planning Commission of Pakistan for
Pilot Project of 50 MW plant based on underground coal gasification. M/s Oracle Coalfield Plc.
UK has been allocated Block-VI for developing a coal mine and installing power plant of 300
MW extendable up to 1000 MW. The Sindh Government entered into a joint venture with M/s
Engro Powergen (Pvt.) [3] Ltd for coal mining and installing 600-1000 MW power plant in
Block-II. Operational coal mines increased production from 1.704 million tons to 2.350 million
tons during July to March 2010-2011 against the same period

Pakistan has the highest shares in energy mix were in Oil and Gas field which were almost 64%
of total energy mix. Pakistan was consuming 44% of natural gas, 29% of Oil, 16% of electricity,
10% of coal and 1% of LPG, given in figure 1.4

Coal LPG
10% 1%
Oil
29%
Electricity Oil
16% Gas
Electricity
Coal
LPG
Gas
44%
1.4.1 Oil: -
Pakistan has a total production capacity of Oil was 27 Million barrels, which means 66,032
barrels per day. 13 Companies were operating in Pakistan for crude oil production during July to
March 2012-2013. The import of petroleum product was 15.2 Billion Dollars during fascial year
2012. However, during July to March FY13, it posted a negative growth of 0.53% due to fall in
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quantity (negative 0.18%). The main reason attributed to decline is declining prices of petroleum
products globally and fall in utilization of oil/petroleum products.

Pakistan is the one of the largest consumers of Natural gas. There are 146 non-associated gas
fields while 44 associated gas fields operating under 15 companies. Pakistan’s energy is mostly
depending upon Gas. It has been stated that the share of gas increased by 46% in agriculture
sector [4]. The share of gas in power sector decreased by 30% due to gas priority in other sectors.
Overall the growth of natural gas was declined during July to March 2012-2013, the share
natural gas in power sector was 27.5% followed by industrial sector 22.6% and residential sector
remained at 23.2%. While in transport sector it shows an increment of 5.3%. Pakistan’s
government always encouraged the use of CNG for pollution reduction and improve air quality.
2.7 Million users of CNG which were the highest ration of using CNG in the world. 3,395 CNG
stations were working. While LPG is colorless and environment friendly that’s why the LPG has
a hare of 0.5% in energy mix. Where the supply of natural gas was technically impossible there
the LPG supplied make feasible. In order to encourage LNG import to bridge widening gap
between gas demand and supply, the government has notified LNG Policy, 2011. In line with
said objectives, ECC of the Cabinet on October 3, 2012 have approved following LNG import
projects.
1.4.3 Coal: -
Pakistan has huge coal resources estimated at over 186 billion tons; including 175 billion tons,
identified at Thar coalfields. Brick Kiln has highest shares of coal in usage which were almost
58% of total coal production and after that cement industry came which have almost 41% of
shares.

Responsible for planning, construction and operation of nuclear power plants i.e Karachi Nuclear
Power Plant (KANUPP) and Chashma Nuclear Power Plant Unit-1 and 2 (C-1 & C-2). The
construction of two more units C-3 and C-4 is in progress. KANUPP, located at Karachi,
completed its design life of 30 years in 2002. After necessary refurbishments and safety retrofits,
it is now operating on extended life. KANUPP, generated highest ever electricity in a calendar
year in 2012, in its 40-years history. C-1 and C-2 located at Chashma are performing very well.
C-1 achieved record of continuous operation of 239.13 days in July 2012. The commercial
operation of the under construction nuclear power plants C-3 and C-4 of 340 MW each, is
planned in December 2016 and October 2017, respectively [4]. At present, the construction
activities are three months ahead of the schedule. Dome on C3 containment was placed
successfully on March 6, 2013. The government has mandated Pakistan Atomic Energy
Commission (PAEC) for the installation of 8,800 MW nuclear power capacities by the year
2030. PAEC has technical and engineering infrastructure is in place to provide technical support
to existing under construction and future nuclear power plants. It also has a network of in-house
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educational and training institutions that encompass all major facets of nuclear science and
technology.
Electricity is the second source of Energy. Electricity demands always increased in every sector.
The total utilization of electricity remained 76,761 GW during July to March 2012-2013. Total
utilization of electricity household has the highest shares of 46.5%, followed by industrial
27.5%, agriculture 11.6%, commercial 7.5%, other government 6.2% and street lights 0.6%. The
number of electricity consumers increased up to 21.704 million [4]. Between the period 30th
June 2012 to March 2013, 8,995 was the progressive number of electrified villages.

Due to aerodynamic crises, constant economic growth of world and slow progress in greenhouse
emission, the year 2014 remained unstable. Furthermore, in 2014 china became the largest
exporter of Oil. Pakistan’s government played their role to encourage energy sector instead of
lower amount of taxes in GDP. TAPI pipeline project remain the center of eye in Pakistan and
expected to start work in Pakistan in 2017 to provide 1.3 Billion cubes of Gas. The supply shown
that the annual growth of energy was 3.6% from 1991 to 2014. The growth of energy annually
increased by 4.4% as compared to last year. Energy utilization is given according to resources in
fig 1.5

Coal LPG
7% 1%
Electricity
13% Oil
34%
Oil
Gas
Electricity
Coal
LPG
Gas
46%
1.5.1 Oil: -
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The utilization of petroleum decreased by a significant ratio due to high prices of Oil. The price
of Oil decreased because of load management pressure. Then Pakistan government take
advantage of that and import high amount of Oil and in this way the consumption oil again
increased and Pakistan governments saved 3 Billion Dollar in 2014. Unfortunately, due to
tripping 11KV lines of Muzaffargarh, largest production plant of Pakistan, Pak-Arab Refinery
Limited (PARCO) closed and due to leakage of distilled tower, National Refinery Limited
(NRL) also shut down [5].

Pakistan is the one of the world’s largest utilizing country and has a world class transmission and
distribution system. During July-February 2014-2015, the transmission lines of gas expended
to59 villages of Pakistan to provide gas. Two gas production companies (SSGCL and SNGPL)
constructed 1,040 Kilo meter and 72 Kilo meters respectively. Government was trying to provide
natural gas at least 419,445 to new consumers in the fascial year 2014-2015. In summer we faced
the problem of load shedding of gas, because our production of natural gas was 4,000 MMfcd
while our requirement was 6,000 MMfcd [5]. Pakistan government gave priority of natural gas to
commercial and domestic sector over power sector. However, the Honorable Sindh and
Peshawar High Courts have directed the federal government to adhere the provision of Article
158 of the Constitution therefore the gas load management is mostly restricted to Punjab
Province as its shared in gas supply is about 5 percent while it has a share of almost 46 percent of
national gas consumption. Pakistan government has taken some important step to decrease the
shortage of natural gas.
 To maintain the natural gas at demand level
 Pipelines of gas was increased
 Gas should be import from Iran
 LNG should be import
 Gas should be import from Turkmenistan
Pakistan’s government always encouraged the CNG due to pollution reduction. Pakistan was the
first country in the world who was using more than 3 Million vehicles at CNG. Almost 3,14
CNG stations were present. While on the other hand, LPG also played an important role because
where the natural gas delivery was technically not feasible, LPG was delivered at those areas.
LPG total supply was 494,763 Million tons during July to March 2014-2015, which was 0.5% of
total mix energy supply. Almost 4,482 LPG authorized distributors were present under 21 LPG
producers and 97 LPG marketing companies. TAPI gas pipe line project was delayed due
security issues in Afghanistan. The Government of Pakistan is now successful to import 500
million cubic feet per day (mmcfd) of LNG from Qatar. As per LNG Policy in 2006/2011 the
project structures can be (i) integrated, in which the terminal developer arranges LNG imports as
well as its buyers and (ii) unbundled, in which the terminal developer, LNG importer and LNG
buyers are different [5]. In 2014, the Government of Pakistan called bids through Inter State Gas
Systems (ISGS), for construction of LNG regasification terminal by private companies.
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Electricity always played a main role in our economy, due to shortage of electricity our GDP
decreased to 2-3%. The utilization of electricity increased day by day in every sector. Multiple
Major improvements were done in 2015 Power Generation Policy [5]
 For Projects under Government to Government Agreement, terms and conditions of such
Agreement shall be applicable accordingly
 Payment of Capacity Purchase Price (CPP) with reduced Return on Equity (ROE) to
Independent Power Producers (IPPs) in case plant is not available for dispatch due to
non-availability of fuel solely caused by delayed payments by the Power Purchaser
 Minimum Take or Pay Provision to be included in the Power Purchase Agreement (PPA)
as agreed by Power Purchaser / NEPRA
 Performance Guarantees (PGs) payable in equivalent Pak Rupees at the prevailing
exchange rates at time of encashment
 For any specific fuel, Government of Pakistan may provide Guarantee for obligation of
the fuel supplier
 Laws of England will be allowed for the foreign lenders participating in the projects as
the governing law for the Direct Agreements (Implementation Agreement (IA) &Power
Purchase Agreement (PPA)
 LOI Bank Guarantee extended till issuance of LOS instead of completion of Feasibility
Study
 LOS Bank Guarantee to secure Financial Close only instead of FC and COD under 2010
Guidelines
 International Competitive Bidding (ICB) on Tariff for Hydropower projects will be
carried out where Feasibility and Detailed Engineering Design is available
 PPIB will issue Tripartite LOS for projects initiated by the Provinces/AJK/GB, execute
IA and issue Government of Pakistan Guarantee
 For R-LNG based projects, Standby Letter of Credit (SBLC) and/or Revolving L/C in
favor of R-LNG Supplier to be established by the Sponsor
1.5.4 Coal: -
The Thar Coal project, Sindh resources Private Limited (SSRL) and Sindh Engro Coal
Mining Company (SECMS) was given a priority due to China-Pak Economic Corridor
(CPEC) and china was financing at these projects, and almost 2,400 MW of electricity will
be produced from these three projects in 2018 [5].
1.5.5 Nuclear Power Plant: -

Pakistan Atomic Energy Commission (PAEC) is operating three nuclear power plants. The
first nuclear power plant, Karachi Nuclear Power Plan (KANUPP), completed its 30-year
design life in 2002, continues to provide electricity after necessary refurbishments and safety
retrofits. Two nuclear power plants, Chashma Nuclear Power Plant unit-I & unit-2 (C-1 & C-
2) are operating very well and setting high standards in the power industry of the country.
Work on the construction of the fourth and fifth nuclear power plants, Chashma Nuclear
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Power Plants unit-3 & unit-4 (C-3- & C-4) at Chashma site continues ahead of the schedule
[5]. These two units are 340 MW each and are scheduled to be connected to the National grid
in 2016, one in April and the other in December. Sixth and Seventh nuclear power plants,
Karachi Coastal Power Plants (K-2 and K-3) are also under construction near KANUPP.

World has seen the major and important development in Power Sector in 2016-2017. Pakistan’s
government shown a great improvement in power sector and reduced the circular debt, the
circular debt was Rs 464 billion in 2012 and reduced to Rs 217 billion in fiscal year 2016 by
improving some factors in energy sector (1) Improve the performance of Disco’s (2)
rationalizing tariffs (3) Tariff determination was also reduced [6].
Electricity demands increase day by day, due to population increased. Electricity is necessary in
every residential sector. The capacity of electricity increased from 22.9 Million MW to 25.1
Million MW during fascial year 2017. But the electricity generation capacity decreased in 2017
(85,206 GW/h) as compared to 2016 (10.970 GW/h). The decline in hydro power sector was due
to weather condition, because flow of water was in the river. Fig 1.8 is given according to
electricity consumption.
Electricity Generation Shares FY 2016 Electricity Generation Shares FY

2017
Nuclear
4% Nuclear
6%
Hydro
34% Hydro
30%
Thermal
62% Thermal
64%
Nuclear Hydro Thermal Nuclear Hydro Thermal
Figure 1.6: Share in Electricity Generation 2016 & 2017
1.6.2 Oil: -
Pakistan’s energy sector mostly depends upon gas and oil. Crude Oil domestic production was
24.2 Million barrels during July to March fiscal year 2017. Our demand of electricity is high as
compared to supply. The crude oil quantity remained 5.9 Million tons during July to March
fascial year 2017, thus the prices of oil lowered which helped the foreign exchange due to lower
import bills. Pakistan’s government trying to convince the companies to drill or explore the new
oil fields in Pakistan.
16

Natural gas in environmentally friendly and more efficient. Pakistan has an extensive gas
network of over 12,202 Km Transmission 119,736 KM Distribution and 32,823 Services gas
pipelines to cater the requirement of more than 8.4 Million consumers across the country by
providing about 4 Billion Cubic Feet per day natural gas. The utilization of gas increased from
55% -57% in the fascial year 2017. increasing demand of energy in the country. During July –
March FY 2017 the LNG imported remained 129,092,714 mmbtu compared to 62,373,272
mmbtu during same period last year [6]. The average natural gas consumption was about 3,654
Million Cubic Feet per day (MMCFD) including 410 MMCFD volume of RLNG during July
2016 to February. During July 2016 to February 2017, the two Gas utility companies (SNGPL &
SSGCL) have laid 814 Km Gas Transmission network, 4,153 Km Distribution and 1,162 Km
Services lines and connected 104 villages/towns to gas network. It is expected that Gas will be
supplied to approximately 414,723 new consumers during the fiscal year 2017-2018.
1.6.4 Coal: -
Pakistan has the one of the largest coal reserves. Federal Government of Pakistan was exploring
new coal mines in other provinces of Pakistan. Total 19 coal mines have been discovered in
Pakistan which were equal to 186 Billion Tons. Brick Kiln and cement industry has the largest
shares of coal in Pakistan. Our coal production per year is almost 3.5 Million tones and we are
importing 4-5 million tons of coal to maintain the supply and demand equation.
1.7 Economic survey 2018-2019

Economy and Energy has tight bond. Pakistan is facing many crises which directly or indirectly
effects the Pakistan energy sector, thus the economy also disturbed. Prime Minister of Pakistan
formed a task force to meet the energy crises in Pakistan. National Transmission and Dispatch
Company (NTDC) has prepared and submitted Indicative Generation Capacity Expansion Plan
(IGCEP) 2018-40 to National Electric Power Regulatory Authority (NEPRA), the electricity
regulator. This expansion plan is a part of the Integrated Energy Plan, which will include power,
as well as petroleum demand and supply plans until 2047. The share of petroleum product or oil
reduced to 31.2% due to high prices, which hydro had 7.7% shares in fiscal year 2018. Natural
gas consumption reached at 34.6%, LNG share was 8.7%, coal share was 12.7%, RERs share
was 1.1% and nuclear share was 2.7% in fiscal year 2018, shown in figure 1.7
17
Energy Utilization
8%
3%
1%
32%
13%
Oil
Natural Gas
LNG
Coal
RERs
Nuclear
9% Hydro
35%
Figure 1.7: Energy Utilization 2018-2019
The utilization of electricity was decreased in residential and agriculture sector due to high tariff
during July to March fiscal year 2019. While electricity consumption in industrial sector
increased, because load shedding was decreased.
1.7.2 Oil: -
Pakistan’s energy mostly depends upon Oil and Gas. The Crude Oil production was 24.6 million
barrels during July to March fascial year 2019. Due to high demand of petroleum or oil in whole
world, is not enough. Therefore, Pakistan has to import oil from Middle east countries such as
Saudi Arabia. 6.6 million tone of crude oil was imported in the end of fiscal year 2019. The
crude oil imported in year 2019 was less then 2018. The reason is that prices of oil were
increased. Transportation and Power sectors are the main users of Oil. The share of Oil in
transportation increased by 77% while in Power it decreased by 14% during July to March 2019.
The indigenous and imported crude is refined by six major and two small refineries [7]
 Byco Oil Pakistan Limited (Byco) has established an Oil Refinery at Hub, Balochistan
with refinery capacity of 120,000 Barrel Per Day (5 million tons/annum) at cost of US$
400 million. Byco has also installed Single Buoy Mooring (SBM) facilities for
transportation of imported Crude Oil and petroleum products from ships to the storage’s
tanks. The capacity of said facility is 12 M. tons per annum.
18
 Attock Refinery Limited (ARL) has started producing Euro-II (0.05 % Sulphur HSD)
Further, the refinery has also installed isomerization plant and enhanced the production of
Motor Gasoline.
 Pakistan Refinery Limited (PRL) has also installed isomerization plant in 2016 and since
then has doubled its production of Motor Gasoline.
 Pak Arab Refinery Limited (PARCO) is implementing PARCO Coastal Refinery project
at Khalifa Point, near Hub, Balochistan, which is a state-of-the-art refinery having
capacity of 250,000 barrels.

Natural gas in environment friendly and clean. Pakistan has the 12,971-kilo meter long gas
transmission network, 139.827 kilo meter distribution and having 37,058 pipelines which are
providing gas to 9.6 million customers. At present, the capacity of two Floating Storage and
Regasification Unit (FRSU) to Re-gasified Liquefied Natural Gas (RLNG) is 1200 MMCFD and
accordingly RLNG is being imported to mitigate gas demand-supply shortfall. The average
natural gas consumption was about 3,865 Million Cubic Feet per day (MMCFD) including 785
MMCFD volume of RLNG during July 2018 to February 2019 [7]. During July 2018 to February
2019, the two Gas utility companies (SNGPL & SSGCL) have laid 69 Km Gas Transmission
network, 3,232 Km Distribution and 1,366 Km Services lines and connected 165 villages/towns
to gas network. During this period, 428,305 additional gas connections including 425,404
Domestic, 2,770 Commercial and 131 Industrial were provided across the country. It is expected
that Gas will be supplied to approximately 430,695 new consumers during the fiscal year 2019-
20.

Pakistan Atomic Energy Commission (PAEC) is the sole department in Pakistan engaged in
electricity generation using nuclear technology. There are five nuclear power plants operating on
two sites in the country, one unit namely, Karachi Nuclear power plant (KANUPP) at Karachi
and four units of Chashma Nuclear power plants (C-1, C-2, C-3, C-4) at Chashma (Mainwali
District of Punjab Province). The gross capacity of these five nuclear power plants is 1,430 MW
that supplied about 7,267 million units of electricity to the national grid during 1st July, 2018 to
31st March, 2019. KANUPP, the oldest of the nuclear power plants, has now completed 47 years
of safe and successful operation. The four units of Chashma are amongst the best performing
electricity generating plants in the country, in terms of endurance and availability. There are two
more units being constructed near the KANUP site Karachi, the Karachi Nuclear Power Plants-2
&3 (K-2 & 3) [7]. First concrete of K-2 was poured on the 20th August, 2015 and that of K-3 on
the 31st May, 2016. Work on the construction of these nuclear power plants is progressing
according to schedule and the K-2/K-3 plants are likely to complete on time. In FY2021, PAEC
is planning to intensify its activities to meet the nuclear electricity generation target of 8,800
MW by the year 2030 set through government’s Energy Security Plan formulated in 2005.
Completion of K-2/K-3 project will be a big step that will bring PAEC 2,200 closer to achieving
this target.
19
1.7.5 Coal: -
Massive energy resource in shape of coal exists in the country and further exploration in
different areas is continued but only a fraction of it is being utilized. Shifting power generation to
country's indigenous coal will help Pakistan gain momentum on the road to sustainable
development. All four provinces have coal reserves but the significant deposits are located in
Thar, Sindh. Coal mining currently being done in Baluchistan, Sindh, Punjab and Khyber-
Pakhtunkhwa mostly comprise small-scale operations. The country’s first large-scale coal mine
(3.8 million tons per annum) along-with integrated power generation plant (2x330 MW) [7] has
been recently made operational at Thar coalfield. The production and import data for the period
from July 2018 to June, 2019 has been estimated for the first half of this financial year
List of Power Plant started during 2014-2018

Total
GENCO-II Wind Laraib
Names of Plants Guddu CC Others
2014 Type of Fuel
Installed Capacity 747 106 84 937

(MW)
Names of Plants RYK Mill FWEL-I Quaid-e- Nandipur
Limited Azam
Type of Fuel Bagasse Wind Solar Thermal
Installed Capacity 30 50 100 425 605
(MW)
Names of Plants Sapphire Chiniot
2015 Power
limited
20
Type of Fuel Wind Bagasse

Installed Capacity 53 63 115
(MW
Names of Plants Apolo Best Crest Metro Younis
Green Energy
Type of Plants Solar Solar Solar Wind Wind
Installed Capacity 100 100 100 50 50 400
(MW)
2016 Names of Plants Tapal Tenaga Master Gul Chasnupp
Ahmad C-3
Type of Fuel Wind Wind Wind (Wind) Nuclear
Installed Capacity 30 50 50 50 340 519
(MW)
Fatima Hamza Sachal Dawood Bhikki Haveli Sahiwal
Names of Plants Energy Sugar Hydro Bahadar
China Shah
Type of Fuel Bagasse Bagasse Wind Wind RLNG RLNG Coal
Installed Capacity 99 15 50 50 1,156 1,207 1,243 3,820
(MW)
2017 Names of Plants RASHMA Gulf Balloki Patrind Chasnupp United Port Qasim Thal
Power Power C-4 Energy industries
Type of Fuel RFO RFO RLNG Hydel Nuclear Wind Coal Bagasse
Installed Capacity 97 84 1,198 147 340 99 1,320 20 3,305
(MW)
Artistic Jhimpir Hawa Tarbela T- Neelum
Names of Plants 4 Unit-17 Jehlum
2018 Type of Fuel Wind Wind Wind Hydel Hydel

Installed Capacity 50 50 50 1,410 969 2,529
(MW)
Grand Total (MW) 12,230
CHAPTER 2
2.1 Energy Report by Ministry of Planning: -
Economic and energy has strong relation. Energy always a play a main role in developing
country for this we have to improve and make focus at our energy security policy. Pakistan
economy is water based. Pakistan always faced challenges regarding energy because our demand
always remains high as compared to usage. Due to energy shortage our economy always
decreased and we are losing almost 3% of GDP. Pakistan’s energy always depends on fuel, like
oil and gas, instead of coal and hydel. In this context, gas accounts for 48%, followed by oil
33%, hydel 11%, coal 6%, nuclear 2% and a small fraction from imported electricity which show
in figure 2.1. Pakistan’s total primary energy mix was 64.59 MTOE during 2012-2013 [8]. In
which 73.5% was obtained from local indigenous gases and 26.5% was obtained from exports.
Pakistan is blessed with huge number of natural resources. According to the resource assessment,
21
there is a potential of 1,250 MTOE of oil and natural gas in addition to 1,540 MTOE of coal in
the country. Furthermore, there is a potential of approximately 100,000 MW of renewable energy
(56,721MW of hydro and 43,000 MW of wind).
Primary Energy Mix
Nuclear & Imported

Hydel Electricity
11% 2%
Coal Oil
6% 33%
Oil
Indigious Gas
Coal
Hydel
Nuclear & Imported Electricity
Indigious Gas
48%
Figure 2.1: Energy Year book 2013
2.2 Fuel Sector: -

The fuel sector consists of Oil, Gas and Coal. The production of domestic Oil remained same
from few decades which were 70-77 BBL in a day but the demand of Oil increasing day by day.
To fulfil domestic demand of Pakistan, they import 10.5 Million Tons of petroleum and 7.5
Million Tons of Crude Oil during 2012-2013. 49% of oil is being used for the purpose of
transportation and 42% for power sector and remaining 9% is used for commercial, domestic,
agricultural and industrial sectors. If we talk about gas sector, 65% of total gas production is
produced by seven exciting plants. represent 65 per cent of the total gas production, which will
start declining in the medium-term. Out of 1,267 billion CFT gas utilization, 28.6 per cent goes
to the power sector, followed by domestic sector 23%, general industry 22%, fertilizer 14.8%,
transport 7.9% and commercial 3.2%. At the current pace of utilization, gas deficits could climb
22
to over 3,000 MMCFD in addition to major oil imports, which could pose energy security risk.
Coal is a cheap fuel for power generation compared to other fuels. Despite huge reserves of 186
billion tones, the utilization and exploitation of domestic coal has been negligible. Out of the
total utilization of 6.88 million tons’ coal, cement industry utilizes 56.1% followed by brick
kilns, that is, 39.1%. Coal is found in almost all the four provinces. One of the basic hurdles for
not developing coal is the use of rudimentary mining methods.
2.2.1 Challenges: -
 Inappropriate wellhead pricing structure of indigenous gas
 Law and order situation hampering the exploration activities
 Shortage of drilling rigs causing low exploration and development possibilities and
prospect generation, whereas lack of economies of scale makes the international bidder
non-competitive
 Slow exploration activities in off-shore areas due to high cost (The present on-shore
exploratory drilling density is about one well per 1,000 square kilometers against the
world average of 9.5 wells per 1,000 sq. km.) [8]
 Non-development of dormant gas reserves because of slow evaluation and appraisal
process, litigations, low BTU or marginal reserves
 Lack of a proper monitoring system to review the progress on blocks already awarded for
exploration
 Highly volatile prices in the international oil market
 Inefficient and obsolete refining operations and sub-standard oil products
2.2.2 Iran-Pakistan Gas Pipeline Project: -

This Project aims to bring natural gas from South Pars gas field in Iran to Pakistan. The project
includes laying of 42-inch diameter 1,800 km pipeline with design capacity of 750 million cubic
feet of natural gas per day (BCFD) from Iran [8]. 1,150-km long pipeline from the Iranian field
to Iran-Pakistan border is being completed by Iran whereas the Pakistani portion of 781 kms is
under active consideration for implementation. In spite of difficulties arising from geopolitical
complications, the IP project will be accorded special attention and all efforts will be made to
commission the project within the Plan period.
2.2.3 Turkmenistan-Afghanistan-Pakistan-India Gas Pipeline Project: -

TAPI is a 1.814 km a gas pipeline project which is passing from four countries. This project is
also known as Peace Pipeline and Trans-Afghanistan Pipeline Project. TAPI pipeline project
starts from Turkmenistan and then enters into Afghanistan and Pakistan and ends at in India. The
TAPI Gas Pipeline project starting gas transportation from Galkynysh gas field, which is situated
in Turkmenistan, then it goes to Afghanistan, Pakistan and ends in India. The diameter of gas
pipeline is 56m and pressure of gas will be 10,000 kilopascals (kPa). This will over almost
214km from Mary region of Turkmenistan to Afghanistan. Galkynysh gas field will feed gas to
the pipeline section in Turkmenistan. It will supply almost 90 million matric standard cubic
meters (Mmscm) of natural gas per day. India and Pakistan will purchase 1,325 Mmcfd of
23
natural gas each, while Afghanistan will purchase 5,00 Mmcfd [8]. The pipeline is expected to
facilitate a unique level of trade and co-operation across the region, while also supporting peace
and security between the four nations. More than 1.5 billion people in Afghanistan, Pakistan, and
India are expected to benefit from the long-term energy security provided by the project. In
addition, the project is expected to boost the revenues of Turkmenistan via the sale of gas.
Afghanistan and Pakistan will also receive benefits through transit fees.
2.2.4 Fuel Sector Reform Initiatives: -

 The price of gas in various uses and sectors to be gradually adjusted to a level close to the
prices of substitute fuels
 Developing human resources for large-scale mining operations at Thar and Lakhra
coalfields
 Provincial governments to augment present facilities and establish new ones based on
latest technologies
 Special attention will be made to attract investors in the offshore exploration. Director
General (Petroleum Concessions), being a focal point, will put all efforts together for
enhancing offshore petroleum exploration activities and target at least two wells per year
(one each in public and private sector) during the Plan period.
 In order to bring efficiency and competition in gas distribution and marketing, the
unbundling of gas distribution system will be examined [8].
2.3 Power Sector: -

Pakistan total power generation capacity during 2012-2013 was 20,849 MW on the NTDC
system and 2,341 MW on K-Electric. However, the installed capacity, the power generation was
96,22 Gwh, which was 48% of capacity utilization. Seasonal variation in hydro power
generation, de-rated capacity of the public sector generating units and failure of timely supply of
fuels to the IPPs are main causes of low-capacity utilization. The power generation mix increases
64% thermal, 31% hydel, 4.7% nuclear and 0.1% coal sources. In summer, the electricity
demand always remains high due to hot weather. In July 2013 Pakistan total required 17,000
MW of energy while we were generating 12,000-14,000 MW of electricity [8]. This shortfall
leaves a great impact at our economy. Due to which we faced a loss of 3% in our GDP.
Furthermore, the power sector continues to be affected by the circular debt as revenues collected
do not fully cover the cost of production due to high Tariff Differential Subsidy (TDS). The debt
at the end of 2011 was Rs532 billion, which rose to Rs872 billion in 2012, representing about
four per cent of the GDP. The issue has not yet been addressed fully, and it will continue to
constrain the sector.
2.3.1 Challenges: -
 We are facing a problem of load-shedding, it happens in both peak-on and peak-off
hours. Weather is also a great challenge because forecast is changing every year.
 Existing transmission lines were enough according to power generation, but with
installation of new power plants we have to extend our transmission lines as well.
24
 Present distribution capacity was not enough, which was not upgraded from many years.
 Our government has not enough fund for energy due to economic issues. Due to high
regulatory and security risks, local and international commercial banks offer loans on
high interest rates, thus increasing the cost of financing.
 Our energy Policy was always ignored due to corruption. Almost 20 operating electricity
generation companies were working but unfortunately, they don’t have any coordination.
 We don’t have plan for proper subsidies because every rich or poor person has an equal
amount of subsidy. That subsidy was applied after the utilization of 100 Kwh [8].
 There is a lack of uniform regulation, which creates distortions between the gas and
electricity sectors. Inconsistent regulation between the National Electric Power
Regulatory Authority (NEPRA) and Oil and Gas Regulatory Authority (OGRA) has
created disharmony in pricing strategies between gas and electricity, while sending
unclear signals to the potential investors of the energy sector.
 Pakistan’s circular debt has a great impact at our economy and at power sector. Our
circular debt was high in each and every sector.
2.3.2 Strategies and Initiatives: -

 To make the energy efficient and affordable, mix energy generation has been encouraged
by adding hydro and coal-based power generation.
 To fulfil the demand of electricity renewable energy resources (RERs) has been
encouraged and government set a target of 5,695 MW of electricity will produced by
RERs.
 To overcome the energy crisis government takes all possible solution and improve energy
security.
 Promoting energy efficiency and conservation occupies an important role in the Plan as
saving and conserving one watt of energy is more valuable than producing two watts.
Taking simple and sensible steps to ensure energy efficiency and conservation have been
categorized as ‘triple win’ as (i) it saves money, (ii) reduces energy demand and (iii)
curbs CO2 emissions. The Vision lays special emphasis on energy efficiency and
conservation.
 Under the China-Pakistan Economic Corridor (CPEC), China, being a key economic
partner of Pakistan, has offered to collaborate on a number of economic projects,
including power generation. During the Plan period, one of the major steps will be to start
21 power sector projects with a cumulative installed capacity of 17,000 MW, which will
be carried out at a total cost of $32.293 billion [8]. The projects, being actively promoted
under the CPEC, include seven projects having a total capacity of 6,645 MW with an
estimated total cost of $16.787 billion.
2.3.3 Power Sector Reforms Initiatives: -

 Reforms in our subsidy policy to make a balance in government subsidies and tariff
hikes.
25
 Recovery of pending dues from those areas where people used electricity and pay
nothing.
 Improving performance of the distribution companies by signing performance
contracts between the Ministry of Water and Power (MoW&P) and government-
owned entities including GENCOs, NTDC and DISCOs2, installing smart meters to
monitor power theft, and offering differential tariffs to consumers willing to pay more
for uninterrupted and high-quality supply.
 Considering prevailing challenges, the government has chalked out a detailed energy
reform agenda. The proposal includes consideration of merger of the NEPRA and
OGRA, establishment of the Energy Appellate Tribunals to avoid costly and delaying
litigation, formulation of Regulatory Advisory Committees (RACs) to provide an
institutional mechanism to elicit response and inputs of the stakeholders.
 Allowing only technical line losses for assessing revenue requirements of the
DISCOs.
 Considering the diverse nature of Pakistan’s energy mix and its peculiar nature of
challenges, importance of an integrated energy modelling and planning mechanism
has been realized. A proper modelling-based integrated energy plan review and mid-
course modification, therefore, will be ensured during the Plan period.
 The annual investments required for the planned power generation and transmission
projects are given in Figure 3. The total investment requirement is estimated at
$38,215 million out of which $6,022 million will be spent on transmission, and the
remaining $32,193 million on distribution [8].
Chapter 3
3.1 Energy Report by State Bank of Pakistan, 2012-2013
Pakistan is facing the biggest problem of energy shortage from last few decades, because the
demand of electricity increases every year. Pakistan economy has a direct relation with Energy.
Due to shortage of energy most of our industry was closed and that’s the main reason to increase
a circular debt. For that reason, most of investors and companies discourage to invest in this
sector. Our Government has to take loan from different Banks and organization to fulfil our
26
energy demand. Unless it can achieve sustained growth rates of 7% as stated by the Planning
Commission, Pakistan will continue to underperform in the global economy [9].
3.2 Power Sector (Electricity): -

Pakistan is facing two main problems regarding electricity, first is shortage of electricity for
household and other sectors, secondly high prices of electricity. The root of this problem is that
the demand of electricity increasing every year and insufficient investment in power sector
which shows in given table. At x-axis the value is in ,000 MW.
Table 3.1: State of Industry (SoI) Report, NEPRA

For power generation we are using alternative sources such as diesel, petrol and gas, still it will
not help in Pakistan burden. The utilization of Gas for household increased and CNG for
transportation also increased. Because these are environment friendly.
3.2.1 Challenges: -
Many developing countries are challenged by inadequate and expensive power, but Pakistan still
fares poorly in comparison. A simplistic assessment is that energy usage in Pakistan has focused
on households, rather than the commercial/industrial sector. The latter directly generates
economic activity as it uses energy as an intermediate good to create value; households, on the
other hand, use power (electricity) as a final good to increase their utility (i.e. comfort or well-
being).
3.3 The Role of CNG: -

Compressed Natural Gas is environment friendly, and cheaper than Oil. That’s why most of
vehicles transferred from Oil to CNG. Many CNG pumps were opened. That made a problem for
our country because CNG consumers has a large ration then its production. That’s why CNG
pumps opened just few days in a week. While this may have reduced CNG sales at the margin,
27
artificially restricting supply does little to tackle the root cause of the problem – the subsidized
cost of CNG [9]. In fact, more gas was made available to CNG stations to meet public demand.
In our view, the economic cost of diverting this marginal gas away from more productive uses
like power generation, was not given adequate policy attention.
This additional demand should be viewed within context of the overall usage of gas in Pakistan.
As a global norm, countries ensure that their base-load power requirement is met by indigenous
sources (as in China and India that rely on coal). In the case of Pakistan, the indigenous energy
source is hydel and natural gas. However, despite the fact that the production of gas has leveled
off since 2008, the authorities allowed for increasing usage by households and as CNG, which
reduced what is available for industry, commerce, and most importantly, power generation.
Heavy usage by household can also be traced to the current tariff structure, and the fact that new
connections have increased quite rapidly in the past 5-6 years. This anomaly was primarily due
to a very sharp reduction in household tariff in mid-2010 [9]. Furthermore, the tariff differential
between households and what industrial, commercial and power generators have to pay has been
increasing. Focusing on those households that use gas to generate power, the sheer efficiency
loss in shifting from large-scale power generation to household generation, cannot be
understated.8 This is only possible because of the gross underpricing of household gas, which
has resulted in the suboptimal allocation of this scarce resource in the country.
3.4 Power Generation Cost: -

The decision to convert natural gas into CNG station effects the natural gas and also effect the
Power generation cost. In Pakistan different source of electricity generation are present such as
hydel power plants, solar and Biogas etc which has different cost. Hydel is one of the cheapest
sources to generate electricity. There are some other points to be considered [9]
 Operation and maintenance cost are directly proportional to the fuel used. So gas-
powered units post lower O&M costs than generating units that depend on oil products.
 Different power plants have different efficiency such as hydel power plant has different
as compared to nuclear power plant.
 Due to insufficient production of gas encourage to NEPRA to generate expensive power
from other resources.
3.5 Circular Debt: -

It has been stated that the circular debt increased from Rs 84.1Billion in the end of year 2005 to
Rs 872.4 Billion in the end of year 2012. Unpaid customers have also a large number which also
leave a great impact at circular debt and our economy. Furthermore, just the delay in notifying
the Nepra tariff in FY12, created a hole of Rs 72.2 billion, while the loss on account of
inadequate or delayed fuel adjustments, have also added to the burden in fiscal year 2011 and
fiscal year 2012. Unpaid bills during 2006-2012 was up to Rs 248.9 Billion [9]. It is clear that
28
Peshawar, the FATA region, Hyderabad, Sukkur and Quetta account for the bulk of unpaid bills.
On the other hand, private consumers in Lahore, Multan, Faisalabad, Islamabad, Rawalpindi and
Gujranwala, are relatively more conscientious about paying their bills. This means different
Discos will have to customize their restructuring agendas to improve their respective operations.
3.6 Problems Solution: -

With power subsidies driving the circular debt and fiscal deficit in FY13, there is an urgent need
to increase tariffs. However, this itself will not resolve the problem, as rising tariffs could
incentivize theft and bill manipulation – it will also reduce utilization as conservation measures
are adopted more widely. These factors could undermine revenue generation, which means the
expected increase in revenues accruing to Discos, may be less than anticipated. Tariff
rationalization would also impact the demand side, as conservation measures are likely to be
adopted to manage electricity bills. In discussions with energy experts, there are several avenues
end-users could pursue to reduce utilization [9]:
 Audits by energy experts. All users can have their power utilization audited to flag
inefficient appliances20; ensure the load supplied is consistent with the user’s
requirement; and additional advice to make existing premises more energy efficient;
 Discos like Kesc, are actively working with appliance manufacturers to create awareness
and promote energy efficient household appliances;
 Building codes should be formulated to make new residential, office, commercial and
industrial spaces more energy efficient;
 Minimum standards for power distribution networks in newly developed areas, will not
only generate long-term efficiencies, but also reduce the incidence of theft;
 For low income households, the Asian Development Bank has launched a scheme to
replace inefficient bulbs with energy savers; and
 Media and advertising campaigns to create awareness of the above avenues by the
government
In most of these conservation measures, the government will have to take an active role.
Although some positive steps were taken by past governments, they lacked policy commitment
and longevity to have a meaningful impact. Worse still, fundamental policy decisions on gas
allocation, pricing of oil & gas exploration and end-user tariffs (both gas and power); have been
working at cross purposes. For example, gas allocation and pricing decisions are done by the
Ministry of Petroleum and Natural Resources (and OGRA), while power generation and tariffs
decisions are made by the Ministry of Water & Power (and Nepra). In effect, decisions about
how best to allocate scarce natural gas and its implications on required oil imports, are done by
different players, often operating under different compulsions.
29
Figure 3.1: Existing Structure of the Energy Sector
Figure 3.2: Proposed Structure of Energy Sector
CHAPTER 4
30
4.1 Turkmenistan-Afghanistan-Pakistan-Indian (TAPI) Gas Pipe Line

Project:
TAPI is a 1.814 km a gas pipeline project which is passing from four countries. This project is
also known as Peace Pipeline and Trans-Afghanistan Pipeline Project. TAPI pipeline project
starts from Turkmenistan and then enters into Afghanistan and Pakistan and ends at in India.
This project started in November 2014 by a TAPI Pipeline Company (TPCL). Turkmengaz is the
highest stake holder of this project by 85% interest and then Inter Gas System, Afghan Gas
increase, and GAIL have a share of 5% of each. This project has a total cost of 10 Billion
Dollars. The inauguration ceremony was held in December 2015 at Turkmenistan-Afghanistan
Pipeline section, near the Galkynysh gas field [10]. The agreement among these four countries
were signed in February 2016. Afghanistan and Pakistan Pipeline section was started in February
2018. It is expected that TAPI pipeline project will be start in 2020 and this will serve for 30
years. It is expected to transport 33 billion cubic meters (bcm) of natural gas a year.
4.2 Development Background: -

TAPI Pipeline projected was first time presented in 1990s to generate maximum revenue from
Turkmenistan’s reserves. The agreement among these countries were signed in 2010 and named
as Inter-Governmental Agreement (IGA). Furthermore, the petroleum ministries of these four
countries also signed a Gas Pipeline Framework Agreement (GPFA) in December 2010 [10].
The bilateral gas sale agreement was signed in May 2012. Turkmengaz, Afghan Gas increase,
Inter State Gas Systems, and GAIL were nominated as shareholders by their respective countries
to promote and invest in the pipeline project in 2013. The state-owned companies of Pakistan
and India are each expected to purchase 42% of the total volume of produced gas, equating to
approximately 14bcm. While Afghanistan is expected to purchase 16% of the gas. Afghanistan
will also receive $400m a year as transit fee for the pipeline.
4.3 Detail of TAPI Pipeline Project: -

The TAPI Gas Pipeline project starting gas transportation from Galkynysh gas field, which is
situated in Turkmenistan, then it goes to Afghanistan, Pakistan and ends in India. The diameter
of gas pipeline is 56m and pressure of gas will be 10,000 kilopascals (kPa) [10]. This will over
almost 214km from Mary region of Turkmenistan to Afghanistan. This section was built along
the highway of Afghanistan. Furthermore, this pipeline was running across the Herat and
Kandhar highway in Afghanistan and its length is 774km. In Pakistan, it will cover almost
826km, which will pass through Multan and Quetta cities of Pakistan and finally ends at Fazilka
at Pakistan-India border in Punjab region, India. Initially it will transport 27bcm of natural gas
per year, which will be increased 33bcm after one year of operation.
4.4 Construction: -
The TAPI Gas Pipeline project will construct in 2 phases. A free flow pipeline with a capacity of
delivering approximately 11bcm/year will be developed in the first phase, with two compressor
31
stations in Turkmenistan. In second phase it will consist of 6 compressor stations in the region of
Pakistan and Afghanistan to increase the delivery capacity to approximately 33bcm/year [10].
4.5 Supply of Gas: -

Galkynysh gas field will feed gas to the pipeline section in Turkmenistan. It will supply almost
90 million matric standard cubic meters (Mmscm) of natural gas per day. India and Pakistan will
purchase 1,325 Mmcfd of natural gas each, while Afghanistan will purchase 5,00 Mmcfd.
4.6 Financing: -
The TAPI gas pipeline project is being funded by Asian Development Bank (ADB) [10], which
is also playing a role as a transaction advisor for the development. Islamic Development Bank
gave a loan of 700 Million Dollar to Turkmenistan for this project in December 2016. While
Pakistan, Afghanistan and India invest initially 200 Million Dollar for this project.
4.7 Contractors: -
Technical feasibility contract was given to a Uk based company, Penspen. While, Penspen gave
the study and inspection of environmental and social safeguard components of the initiative to a
subcontractor, Royal HaskoningDHV [10]. The contract of Pipeline front-end engineering and
design (FEED) study was given to ILF Consulting Engineers Company. Global Pipe Company, a
Saudi-German JV company, received a $40m contract for the development of the pipeline. The
scope of the contract also included the provision of technical supervision services for the
Afghanistan-Pakistan section of the pipeline network. Portland, Allen & Overy, and Gas
Strategies are the other legal and technical advisers for the project.
4.8 Benefits: -
The pipeline is expected to facilitate a unique level of trade and co-operation across the region,
while also supporting peace and security between the four nations. More than 1.5 billion people
in Afghanistan, Pakistan, and India are expected to benefit from the long-term energy security
provided by the project. In addition, the project is expected to boost the revenues of
Turkmenistan via the sale of gas. Afghanistan and Pakistan will also receive benefits through
transit fees.
32
CHAPTER 5
5.1 Asian Development Bank: -
The program will help Pakistan reduce financial, technical, and governance deficits in the energy
sector, which adversely impact sector sustainability and affordability and Pakistan’s fiscal
balance and macroeconomic stability. It will (i) secure financial sustainability by controlling
accumulation and addressing reduction of circular debt; (ii) strengthen governance by
rationalizing a competitive market road map, the separation of policy and regulatory functions in
hydrocarbons, the appointment of appellate tribunals, the implementation of multiyear tariffs and
the unbundling of the gas subsector; and (iii) reinforce infrastructure improvements through
integrated planning to facilitate public and private sector investment across the energy supply
chain [11].
5.1.1 Background: -
Pakistan energy has direct relation with the economy. World bank stated that energy sector
effected the 6.5% of GDP, which is almost 18 Billion dollars in 2015. The quality of electricity
in Pakistan is very low but the cost is very high which reduced the trade and export. Despite
structural improvements under ADB’s Sustainable Energy Sector Reform Program (SESRP)
subprograms 1–3 during 2014–2017 [12],11 the suboptimal resolution of timely tariff
adjustments and system inefficiencies persists.
5.1.2 Evolution in Circular Debt: -

Formulation of the National Power Policy and the announcement of incentives to attract private
capital in 1994 led to $5 billion in private investment and 4,500 megawatts (MW) of new
capacity, mostly oil-based because of its short gestation period. However, furnace oil prices rose
from PRs2,800 per ton in 1997 to PRs75,000 per ton in 2019, pushing up electricity generation
costs significantly. To moderate tariff increases, the government provided tariff differential
subsidies to cover about two-thirds of the population with lower electricity consumption level.
By 2012, circular debt totaled PRs460 billion [13]. Moreover, the liquidity crisis led to
inadequate investment in critical infrastructure to meet growing electricity demand, resulting in
capacity shortage of up to 7,000 MW, or 30% of total capacity, and 12–16 hours of daily load
shedding across Pakistan.
5.1.3 Inadequate tariffs and inefficient subsidies: -

Until 2018, NEPRA determined tariffs (NDTs) as the cost of supply based on petitions from
DISCOs, and the government notified end user tariffs with a mix of subsidies and NDTs. The
gap between the notified tariffs and the NDTs was effectively the subsidy. Through the EFF and
SESRP, the government successfully reduced subsidies from 1.8% of GDP in 2013 to 0.4% in
2017 [14]. However, the balance of payment and budget crises in FY2018 caused the
33
government to fall short in its subsidy payments to DISCOs because of insufficient budget
allocations.
5.1.4 High Cost of Generation: -

In 1994, hydro power comprised more than 80% of the generation mix, but by 2014, thermal
power plants made up 73% of supply, increasing the power subsector’s reliance on imported fuel
and vulnerability to balance of payment crises.19 Continuing to operate inefficient power plants
because of the lack of monitoring of actual capacity (installed versus rated) and fuel availability
exacerbates the issue. This will be partly addressed by the planned retirement of nearly 4,000
MW of inefficient thermal power plants upto 2024 as their power purchase agreements expire.
However, new power plants with 8,000 MW of generation capacity will be added during 2019–
2023, bringing total generation capacity to 35,500 MW [15] that will add to higher capacity
payments.
5.1.5 Unsustainable Losses: -

Electricity network losses and leakages also intensify the liquidity crisis. DISCOs estimate of
18.3% transmission and distribution loss and 10.0% nonrecovery of billed amounts leads to
almost 29.0% revenue loss, 4% higher than FY2016 levels . This puts DISCOs in a negative
spiral of limited investments and increasingly poor efficiency, making system losses a recurring
cause of circular debt.
5.1.6 Weak Governance: -

Despite attempts to corporatize power SOEs, the corporate governance has remained weak and
uneven across SOEs, losses have persisted, accumulating to over $2 billion in FY2018. The
resulting lack of creditworthiness limits financing options and has made power SOEs primarily
reliant on sovereign financing for capital projects investments, DISCOs do not meet NDT’s
benchmark loss reduction and collection targets. Reliance on sovereign financing has also led to
heavy public sector influence on their governance structures, and board and management
positions at DISCOs are held mainly by government affiliated personnel with inadequate sector
experience. Incumbents sitting on multiple boards of energy entities exacerbate this issue.
5.1.7 Lack of Integrated Planning: -

This has manifested in an uneven generation mix, unbalanced switching costs between gas and
power subsectors, and mismatch between idle generation capacity and network availability.
Despite rich solar and wind resources throughout the country, Pakistan lacks a coordinated
policy to incentivize and drive up solar and wind deployment and continues to rely on high cost
imported gas-based generation that negatively affects affordability. Further, power subsector
planning needs to be coordinated with energy security policies, including the development of
indigenous gas, coal, and hydropower resources. In the gas subsector, the large import of
34
liquefied natural gas (LNG) since 2016 has helped curb the gas shortage, but its high price is
posing a new challenge.
5.2 Reforms: -
The new government has developed reform action plans in its new electricity policy and the
concept of integrated energy planning. A large part of these efforts will be on optimizing the use
of the tools that were developed in previous efforts. ADB will support this reform through the
proposed programmatic approach with three subprograms during 2019–2022. In developing the
program, ADB has undertaken multiple diagnostic and analytical studies since 2018. The
findings recommended prioritizing the recurring financial sustainability issues to streamline the
tariff notification cycle; strengthening energy accounting; and reducing generation costs by
inducting solar, wind, and hydropower without capacity charges as well as by addressing the
sector’s governance and infrastructure constraints. The program’s three pillars are financial
sustainability (including actions for climate challenge), governance, and infrastructure.
5.2.1 Reform 1: Financial Sustainability Improved: -

In subprogram 1, a series of tariff notifications in 2019, adjusted a backlog of PRs469 billion.
Further, the tariffs are now based on the new uniform tariff mechanism under NEPRA Act
amendments, which incorporate budgeted subsidies and cross-subsidization among DISCOs to
help control sector deficits. A new circular debt reduction plan based on these tariff mechanisms,
a historic level of system efficiency improvements, and an antitheft program that has recovered
PRs89 billion since November 2018, among others, was developed to monitor quarterly targets
and progress. These efforts and timely subsidy payments reduced circular debt flow from PRs38
billion per month in August 2018 to PRs21 billion per month in August 2019. When fully
implemented the flow is expected to be further reduced to within PRs6 billion per month by 30
June 2021. Under this plan, the government also aims to reduce subsidies from 0.56% of GDP in
FY2020 to 0.40% during FY2021–FY2023 through better targeting.
In subprogram 2, the government plans to further amend the NEPRA Act to introduce an
automatic mechanism for updating power generation costs in tariffs each quarter without
government notification and instituting surcharges for balancing cost of supply. Generation costs
comprise more than 75% of end user tariffs currently, and the automated mechanism will prevent
the backlog of system costs even if tariff notifications are delayed. The government and NEPRA
also aim to notify FY2021 tariffs before the fiscal year starts in July 2020, correcting the tariff
notification schedule for the first time. With such progress, the circular debt reduction plan will
be expanded to reduce circular debt stock. This may include (i) using the sales proceeds of some
generation assets, (ii) divesting power subsector transmission and distribution SOEs through
initial public offerings, (iii) rolling tariff subsidies into social assistance program targeting only
the poorest households, and (iv) converting portions of stock into public debt. The National
Electricity Policy and Plan will be approved as the foundation of integrated planning.
By subprogram 3, in parallel with monitoring of circular debt reduction plan targets, multiyear
tariffs are planned to be introduced for all DISCOs to help NEPRA determine tariffs on time. A
mechanism to link DISCOs’ revenue margins with their performance is expected to encourage
35
efficiency improvements and provide more cash resources to control circular debt. Approval of
the integrated energy plan (2020–2047) will help the government with energy planning and
optimize energy systems, even beyond the scope of the programmatic approach.
5.2.2 Reform 2: Institutional and Regulatory Governance Strengthened: -

For subprogram 1, NEPRA concluded public consultations for the market-oriented electricity
subsector financial settlement model, which was developed with ADB support and is a key step
in this continued effort since SESRP.26 A cabinet committee approved the privatization plan of
two regasified LNG-based power plants whose proceeds can help retire part of the circular debt
stock. The Ministry of Energy (MOE) approved and initiated the separation of policy and
regulatory functions in the petroleum subsector to streamline the sector’s business processes and
promote more investments. The MOE and the Ministry of Law and Justice initiated the
establishment of an appellate tribunal as a dispute resolution mechanism for NEPRA decisions.
The government also approved the requirement of female representation on SOE boards.
Subprograms 2 and 3 will induce professional management to improve the operational and
financial parameters of sector entities, which will also facilitate private investments and
ownership. Competitive selection of management personnel will raise the chances of appointing
skilled managers. The separation of the technical and commercial segments in two DISCOs and
the completion of the regasified LNG power plant privatization will pave the way for
management contracts and other forms of private sector participation. The MOE’s gas sector
restructuring plan will be a plan for the unbundling of the gas sector into transmission and
distribution companies, third-party access to gas transmission lines, and eventual private
ownership in gas companies. The appellate tribunal for NEPRA decisions will be made
operational, and results will be monitored by MOE.
5.2.3 Reform 3: Energy (Power and Gas) Infrastructure Improved: -

Infrastructure investments are urgently needed to improve system reliability, efficiency, and
access, and to tackle circular debt technical issues. While the program will be complemented by
ADB’s investment portfolio and pipeline on transmission and distribution expansion,27 it will
also promote private investments in energy supply infrastructure. For subprogram 1, the MOE
approved the gas loss reduction plan prepared by gas transmission SOEs. It has also revised the
2012 incentive policy to streamline regulatory approvals and encourage more rigorous oil and
gas production investments to reduce the need for imported fuel for energy and transport.
Subprograms 2 and 3 will focus on off-grid and rural electrification, which constitutes power
supply to about 30% of the population; continued auction of oil and gas concessions to reduce
dependency on imported fuel for power generation and energy needs; implementation of net
metering in five DISCOs; 28 and modernization of the electricity system operator, the National
Power Control Center.
5.3 Impact of Reforms: -

36
The key impact of the program is reduced financial, technical, and governance deficits in the
energy sector. By 2024 and with successful program implementation, new accumulation of
circular debt per year will be reduced from PRs450 billion in FY2019 to PRs50 billion,
accumulated payables will drop from PRs800 billion in 2018 to less than PRs250 billion, and the
weighted average electricity generation cost will fall from $0.097 per kilowatt-hour in 2019 to
$0.070 per kilowatt-hour. The appellate tribunal is expected to resolve 60% of cases on NEPRA
decisions within 6 months; such cases are currently taken to court, where decisions may take
years. Under the circular debt reduction plan, the government expects improvement in DISCOs’
collections from 94.7% in 2019 to 99.4% in 2022 and in losses in six distribution companies by
1% annually, generating additional revenues of PRs118 billion by end FY2023.
References: -
[1] Ministry of Finance, “Pakistan Economic Survey 2006-07”
http://www.finance.gov.pk/survey/chapters/15-Energy.pdf, 2007
http://www.finance.gov.pk/survey/chapters/15-Energy09.pdf, 2009
http://www.finance.gov.pk/survey/chapter_11/15-Energy.pdf,2011
http://www.finance.gov.pk/survey/chapters_13/14-Energy.pdf, 2013
http://www.finance.gov.pk/survey/chapters_15/14_Energy.pdf, 2015
[8] Ministry of Planning Development & Reform
https://www.pc.gov.pk/web/energy, 2013
[9] State Bank of Pakistan “Energy Report”
http://www.sbp.org.pk/reports/annual/arFY13/Energy.pdf, 2013
[10] TAPI Gas Pipeline Project
https://www.hydrocarbons-technology.comt/, 2018
[11] ADB. 2019. Sector Assistance Program Evaluation: ADB’s Support to Pakistan Energy
Sector (2005–2017). Manila
[12] World Bank. 2018. Power Sector Distortions Cost Pakistan Billions. News release. 12
December 2018
[13] ADB. 2019. Report and Recommendation of the President to the Board of Directors:
Proposed Programmatic Approach and Policy-Based Loan for Subprogram 1 to the Islamic
Republic of Pakistan for the Trade and Competitiveness Program
37
[14] ADB. 2008. Report and Recommendations of the President to the Board of Directors.
Proposed Program Cluster and Loans for Subprogram 1 to the Islamic Republic of Pakistan for
the Accelerating Economic Transformation Program. Manila; and footnote 11
[15] ADB. 2019. Country Operations Business Plan: Pakistan, 2020–2022. Manila

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1

ENERGY MANAGEMENT SYSTEM

Pakistan’s Energy Report

NAME: MUHAMMAD WASEEM

STUDENT ID: F2019198015

2.3.1 Challenges --------------------------------------------------------------------------------- 23

Energy Utilization by Source

Figure 1.1: Energy Utilization by Source 2005-2006.

1.1.2 Natural Gas: -

1.2 Economic Survey 2008-2009

Energy Utilization by Source

Figure 1.2: Energy Utilization by Source 2008-2009

1.2.1 Oil or Petroleum Products: -

1.2.2 Natural Gas: -

1.3 Economic Survey 2010-2011

Energy Utilization by Source

Figure 1.3: Energy Utilization by source 2010-2011

1.3.1 Petroleum Products: -

1.3.2 Natural Gas: -

1.3.4 Nuclear Energy: -

1.4 Economic Survey 2012-2013

Energy Utilization by Source

Figure 1.4: Energy Utilization by Source 2012-2013

1.4.2 Natural Gas: -

1.4.4 Nuclear Energy: -

1.5 Economic Survey 2014-2015

Energy Utilization by Source

Figure 1.5: Energy Utilization by Source 2014-2015

1.5.2 Natural Gas: -

1.5.5 Nuclear Power Plant: -

1.6 Economic Survey 2016-2017

Electricity Generation Shares FY 2016 Electricity Generation Shares FY

Nuclear Hydro Thermal Nuclear Hydro Thermal

Figure 1.6: Share in Electricity Generation 2016 & 2017

1.6.3 Natural Gas: -

1.7 Economic survey 2018-2019

Figure 1.7: Energy Utilization 2018-2019

1.7.3 Natural Gas: -

1.7.4 Nuclear Energy: -

List of Power Plant started during 2014-2018

2014 Type of Fuel

Installed Capacity 747 106 84 937

Type of Fuel Wind Bagasse

2018 Type of Fuel Wind Wind Wind Hydel Hydel

Primary Energy Mix

Nuclear & Imported

Figure 2.1: Energy Year book 2013

2.2 Fuel Sector: -

2.2.2 Iran-Pakistan Gas Pipeline Project: -

2.2.3 Turkmenistan-Afghanistan-Pakistan-India Gas Pipeline Project: -

2.2.4 Fuel Sector Reform Initiatives: -

2.3 Power Sector: -

2.3.2 Strategies and Initiatives: -

2.3.3 Power Sector Reforms Initiatives: -

3.2 Power Sector (Electricity): -

Table 3.1: State of Industry (SoI) Report, NEPRA

3.3 The Role of CNG: -

3.4 Power Generation Cost: -

3.5 Circular Debt: -

3.6 Problems Solution: -

Figure 3.1: Existing Structure of the Energy Sector

Figure 3.2: Proposed Structure of Energy Sector

4.1 Turkmenistan-Afghanistan-Pakistan-Indian (TAPI) Gas Pipe Line

4.2 Development Background: -