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06 NATURE OF ENERGY CRISIS IN PAKISTAN Ms Mehvish Nigar PDF
06 NATURE OF ENERGY CRISIS IN PAKISTAN Ms Mehvish Nigar PDF
needs of the country have never been studied from one focal point
so as to formulate an integrated energy policy with consultations
from all energy sub-sectors. Each sub-sector has been pursuing its
independent policies to meet the energy requirements which resulted
in a disproportionate energy mix with huge imports and lack of
energy diversity. Despite immense hydroelectric potential, the
country relies on oil imports for power generation.4. In the same
way, natural gas reserves are being rapidly consumed and depleted
instead of increasing the consumption of coal in the energy mix. It
shows lack of cohesion among Ministry of Petroleum and Natural
Resources, Water and Power Development Authority (WAPDA)
and National Coal Authority (NCA). There has been a delay and
ignorance factor constantly involved, which has led to short-term
solutions to control periodic energy deficiencies, rather than long-
term and coherent initiatives to address the issue on pragmatic lines.
There is a long history of lack of research capabilities and budget
allocations to develop alternative energy resources to meet the
growing energy demands. There are two main sources of energy;
non-renewable or conventional sources (oil and natural gas, coal and
coal products) and renewable or non-conventional sources of
energy, (waste, geothermal, wind and tidal wave, photovoltaic, solar
and geo-thermal energy). In Pakistan, there has been more focus on
non-renewable sources of energy which has resulted in country’s
increased reliance on foreign imports to satisfy the energy demands.
Energy Intensity
Energy Diversity
Energy Import Dependency
Energy Transportation.
Energy Intensity
Energy Diversity
3 4 %
6 6 %
Im p o rts 2 1 .8 7 8 M T O E
In d ig e n o u s P ro d u c tio n 4 3 .1 3 2 M T O E
Energy Transportation
fuel used in thermal powerhouses and save over 1 billion dollar for
national kitty if the crude oil price stands even at just $70 per
barrel.12
Table III: Proposed Sites and their Discharge, Fall and Power
Potential
production has remained fairly flat, at around 60,000 barrels per day,
while consumption increased to 350,000 barrels per day. This has
resulted in increase in the net imports of the country. (see Figure IV)
Pakistan’s strategic oil reserves are at precarious level with only 29
days stockpiling. It does not meet IEA standards of stockpiling
which is a minimum of 90 days.34 According to a study on
Pakistan’s oil production and demand, there is a forecast of decrease
in Pakistan oil production of 19.1%, with crude volumes falling
steadily to 55,000b/d in 2018.35
Coal
Nuclear Power
Renewable Energy
sunny belt but currently, the use of solar energy is very limited due
to the higher cost of solar plant infrastructure and lack of silicon
semiconductor industry in Pakistan.
Energy Resources FY 06 FY 15 FY 25
(MTOE) (MTOE) (MTOE)
Oil 3 4 2
Gas 29 34 19
Coal 2 5 13
Hydel 7 13 29
Renewable and Nuclear 1 3 12
Total Indigenous Supply 41 61 75
Gas 10-15%
Electricity-15.2%
Oil 2-5%
Gas-40.3% LPG1-3%
Source: Author
Gas
Coal Catalyst Oil
Other
products
Air Steam
Source: Lawrence Rocks and Richard P. Runyon, “The Energy
Crisis: The Imminent Crisis of Our Oil, Gas, Coal and Atomic
Energy Resources and Solutions to Resolve It”, Crown Publishers,
1972, New York.
Conclusion
The study shows that the energy crisis in Pakistan has not
emerged over night. It is a result of long-term ignorance towards
development in the energy sector. It seems to be a supply-induced
crisis as there have been a short history of reforms in the energy
sector and a lack of focus on diversification of energy resources and
over reliance on imports. Energy plays a pivotal role in the
economic growth of a country which leads to social development
and political stability. For development of Pakistan’s economy, it is
necessary to take advantage of any source which can be harnessed,
converted, transported, and used in practical and reasonably efficient
ways. Those countries which discover significant deposits of oil and
gas will have the least number of problems in their development.
Notes
1
Sharon Burke, “Natural Security”, Centre for a New American Security,
Working Paper, June 2009, USA.
2
Gordon Weynand, “Energy Sector Assessment for USAID/ Pakistan”, Office of
Infrastructure and Engineering: Bureau for Economic Growth, Agriculture, and
Trade, June 2009.
3
Energy and Poverty, International Atomic Energy Agency, Available at,