COMSATS University Islamabad, Attock Campus

Pakistan Studies

Assignment # 03(Project)

Industrial Sector Challenges: Energy Crises

 Name: Rabia Khalid

 Roll No: (CIIT/FA15-BEE-002/ATK)

 Batch: BS(EE)- 8

 Department : Electrical Engineering

 Course Code: HUM111

 Submitted to: Mr. Sadan Ali

 Submission Date: 12th May, 2019

TABLE OF CONTEN

1.1 INTRODUCTION…...................…………….......……………………………………....…...3
1.1.1 History………………………………………………………...….........……….......…3
2.1 FINDINGS AND DISCUSSION……………….......……………………………………....…...4
2.1.1 Resources of Energy in Pakistan……………………………………………………...5
2.1.2 Energy Sectors in Pakistan………………………………………………………...….5
2.1.3 Supply and Demand Situation……………………………………………………...…6
2.1.4 Causes of Energy Crises…………………………………………………….….......…7
3.1 CONCLUSION AND RECOMMENDATIONS ……………………...………………………..…7
3.1.1 Solution of Energy Crises………………………………………………………...…..7
3.1.2 Conclusion………………………………………………………...….........…........…8
3.1.3 Recommendations……………………………….………………...….....…….......…8
4.1 REFERENCES ……………………………......………………………………......………...9

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 Current Social, Economic and Political Challenges related to
Industrial Sector of Pakistan since Partition
For the economy of Pakistan, one of the major sectors is industrial sector. In the development of
any country, industrial sector plays a very important role. The modern concept of industry-
manufacturing goods began in Great Britain in late 18 th century. Industrial backwardness is
usually divided into four categories as follow:
1. Historical Causes.
2. Economic Causes.
3. Social Causes.
4. Political Causes.
One of the main causes of our industrial sector backwardness is that before partition there were
total 921 industries. Out of these industries only 34 industries were given to Pakistan at the time
of partition that is just 3.69% of the total industrial share.
I have choose the topic “Energy Crises” which is one of the main challenge faced by the
economic sector of industries.

“Energy Crises”
1.1. Introduction:
The life on the earth is driven by energy. Energy is considered to be the  backbone of
human activities. It is a fundamental requirement and is crucial to provide for an adequate living
such as food, water, health care, education, shelter and employment.
It has been noticed that energy is the most important requirement for the economic development
of the country. The energy is being used in:
1. Industries.
2. Agriculture purposes.
3. Domestic use of Citizens.
Pakistan is facing huge crises of energy and it is unable to use all natural resources. There are
many reasons behind these crises.
According to an official reports, it has been noticed that over 400,000 workers of industries have
lost their jobs and the industries are facing an annual loss of over Rs 240billion. The more
alarming situation is the factor of load shedding that has been taking place since 2006.
The reasons behind these greatest tragedies were the lack of vision and the unwillingness of
doing the responsibility of governments and political leaderships. Over the past three decades,
the track record of the government has been very disappointing because the government try to
relay on make shift arguments rather than working in long term goal oriented projects.

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1.1.1. History:
2. In the 1960s, Pakistan military built a a large civilian energy input and infrastructure. Most
of the energy was produced by the hydroelectric dams and thermal power stations.
3. In the 1970s, 1st nuclear power station was established in Karachi. Due to which Pakistan's
energy consumption expanded to nuclear power sources.
4. In the 1980s, the military continued engineering and building the nuclear power
infrastructure. Due to the dependence on nuclear sources.
5. In 1994, the 1st largest energy conservation program was launched by the Prime Minister
Benazir Bhutto of Pakistan People’s Party (PPP). The program has a capacity to produce
13,000 MW.
6. Till 1995, only 27 IPPs were able to generate ~6,335 MW of electricity.
7. Till 1998, the ratio was stabilized by the policies enforced by Prime Minister Nawaz Sharif.
8. In 2001, the military government led by President Pervez Musharraf and Prime Minister
Shaukat Aziz, while contributing to the growth of domestic demand for electricity through
large-scale provision of bank loans for the purchase of air-conditioners and home
appliances (share of domestic energy consumption had jumped to 46% of the total by
2008), did not add any new capacity to the energy system.
9. In 2012 Pakistan's first wind power installation came online at the FFCEL Wind Energy
Project in Jhimpir.
10. Musadik Masood Malik was appointed Federal Minister, Water and Power of the Pakistan
Government in May, 2013.
11. He was replaced by Abid Sher Ali who served in the role until the ministry was abolished
in September, 2017.
12. In 2017, its place a Ministry of Energy was created. Awais Leghari served as the first
energy minister of the country until the end of the government's tenure. This tenure's
energy policy was aimed at aggressively building power generation capacity through early-
harvest projects in CPEC. A total of 10,973 MW of power was added by the government
during its tenure, mostly via private sector investments.
Even after all this massive addition of power to the national grid, glaring issues existed in the
power sector. There was still a wide demand and supply gap during high temperature months
which led to periodic, planned load-shedding. Finally, the issue of circular debt was still attached
to the power sector and reached a record high of Rs. 922 billion in March, 2018.

2.1. Findings and Discussion:

The major factors contributing to the downfall of the energy sector include:
1. The pursuance of personal and political interests.
2. Political interference in energy departments.
3. Financial and administrative irregularities.
4. Corruption and nepotism etc.

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In 2007 Pakistan consumed up to 60.388 MTOE of energy. In these 60.388 MOTE, 19.835
MTOE was imported inform of Oil and Coal. Due to relying heavily over imported oil and coal
and shortage of natural gas in future will certainly chock the economic growth for many years.
Some of the details of sources of energy in Pakistan are as follow:
2.1.1. Resources of Energy in Pakistan:
Pakistan is one of the most populous, geographically and strategically
i m p o r t a n t c o u n t r i e s situated in south Asia. The energy supply base of Pakistan consists of
two major segments:
1. Commercial
2. Non- Commercial
 At the time of independence in 1947, the proportion of energy received through
commercial c h a n n e l s i s r e p o r t e d t o b e e q u i v a l e n t t o a b o u t 1 . 2 m i l l i o n
t o n e o i l e q u i v a l e n t . F o r a t o t a l  population of about 33 million, the installed
electricity generating capacity was 50 MW.
 The non-commercial base still makes up a considerably large proportion of the total supplies
in the country. According to an estimate, the biomass based non-commercial form of energy
makes up almost 35% of the total consumption in the country,

Pakistan’s Conventional Sources of Energy:

Energy Type Potential Source

Crude Oil 399 million barrels recoverable reserves. Pak Eco Survey
Natural Gas 31,266 trillion cubic feet recoverable Pak Eco Survey
reserves.
Coal 185 billion tones recoverable reserves. Pak Eco Survey
Hydro Energy 46,000 MW identical potential. Govt. of Pakistan 2005
Nuclear Power 800 MW approx. World Nuclear Association 2011
Table. 1

Pakistan’s Renewable Sources of Energy:

1. Wind Energy.
2. Solar Energy.
3. Bio-mass and Bio-fuels.
4. Geo-thermal Energy.

2.1.2. Energy Sectors in Pakistan:

At present the energy is generated by three modes which are mention below:
Thermal 65%
Hydro 33%
Nuclear 2%
Table. 2
The main companies that produce electricity in Pakistan are as follow:

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 1. WAPDA
2. KESC

2.1.3. Supply and Demand Situation:

The total power production capacity in the country is 19,500MW. Country is falling short of
round about 4500MW. The demand of electricity is growing at the annual rate of 9% where as
the supply rate is only 7%.
According to a survey the energy requirement for different sectors of as economy are as follow:
Household sector 44.2%
Industries 31.1%
Agriculture 14.3%
Government sector 7.4%
Commercial 5.5%
Street lights 0.7%
The supply through power plants is as follow:
Thermal Power Stations
WAPDA operates 11 stations
KESC operates 4 stations
IPPS operates 14 stations
Hydro Power Generation
Tarbela dam 1750 MW
Mangla dam 900 MW
Nuclear Power Generation
Two nuclear rectors 425 MW
Ten Years of Energy Consumption Graph:
The details of last ten years of energy consumption resources are as follow:

Fig. 1 Fig. 2
Energy consumption by source (2001-02) Energy consumption by source (2011-12)

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In the above graphs, it is clear that the energy consumption resources change over the passage of
time. During the era of 2001-2002 the majority of energy was consumed through gas i.e. 41%.
While during the era of 2011-2012 the majority of energy is consumed through oil i.e. 49%.

2.1.4. Causes of Energy Crises:

Analysis showed that the main causes of energy crises are as follow:
1. Industrial Decay:
There is poor planning in the industrial sector of Pakistan. Pakistan has a huge capacity for
hydropower and large deposits of coal. But Pakistan had spoiled these resources. For
example in 1990s, construction on Kalabagh was delays.
2. Corruption:
According to Shams-ul-Mulk, the former chairman of WAPDA, at present there is no
shortage of electricity in Pakistan. The electricity crises are only due to non-payment to
IPPS. It is estimated that for every 100 units of electricity provided by a distribution
company, it gets paid for 30.
3. Monopolization:
The Pakistani government has monopolized the generation, transmission and distribution
of electricity. Due to this reason the spirit of entrepreneurship has been destroyed. For
example KESC.
4. Neglected Efficiency:
Due to negligence in improving the efficiency of the generation system the production rate
did not increased on rapid rate. The lack of investment into the existing structures and into
the development and installation of more efficient infrastructure is another major reason.
5. Faulty Distribution System:
There is almost 15% to 20% energy wastage through poor distribution system which
causes line loses. Due this reason the utility end does not get the required amount of
electricity.
6. Aging of Equipment:
Every machine has a specific life period after which it does not function properly. So there
is a need of replacing or repairing the old machines over the passage of time. Due to
carelessness in this work, the electricity generation rates decreases.
7. Some Other Causes:
Some of the other causes are as follow:
i. Economic and political instability.
ii. Fluctuation of oil prices in international market.
iii. Silting process
iv. Mismanagement of resources.

3.1. Conclusion and Recommendations:

3.1.1. Solution of Energy Crises:

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 In order to overcome the energy crises, Pakistan need to come up with three types of
policies that are mention below:
1. Short term plan
2. Medium term plan
3. Long term plan
1. Short Term Plan:
 Increase the number of IPPs.
 Reactive the close power generation units.
 Overhaul the existing poor distribution system.
 Import electricity to fulfill the current need for industries on as hoc basis.
 Government should have strict check on energy indicators on regular basis to counter
such crises in future.
2. Medium Term Plan:
 Transformation of existing system to renewable energy resources.
 Developing and installing biogas, solar, wind, and micro hydro based project in
villages.
3. Long Term Plan:
 Developing and installing coal based power houses.
 Initiates agreement for mega projects with the energy extensive countries for
sustainable energy resources.
 Exploration of more oil, gas and coal reserves.
 Provide incentives for up-gradation and training to the engineer for new technology.
3.1.2. Conclusion:
It is concluded that the government should have to take the above mentioned steps in order to
reduce energy crises. The government needs to pay special attention towards coal base power
generation as it can give us electricity for the next 25 years.
3.1.3. Recommendations:
Some of the recommendations to solve energy crises in Pakistan are as follow:
1. Funds must be initiated on priority bases.
2. Electricity from neighbor countries can be utilized during the time period in which the
required amount of electricity can be generated.
3. Removing the circular debt of WAPDA and PEPCO.
4. Ensuring the complete payment of dues to the distribution companies.
5. Improvement of various thermal power units.
6. Mega projects should be initiated in order to increase generation rate like construction of
big dams and power plants.
7. Funds allocated by the federal government are not enough to construct big dams. So,
government should ask fir international funds on reasonable rate of return.
8. Government should take all the provinces onboard in order to solve the issue regarding
Kalabagh dam.

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 9. Government should also need to enhance partnership with trade partners like China.
10. Industries that consumes 32% of our electricity, must apply energy conservation system
and management measures.
4.1. References:
[1]. Awan, A. B., & Khan, Z. A. (2014). Recent progress in renewable energy–Remedy of
energy crisis in Pakistan. Renewable and Sustainable Energy Reviews, 33, 236-253.
[2]. Aziz, Sartaj (23 April 2013). "Who is responsible?". Pakistan Today, April 2013. Retrieved
30 August 2013.
[3]. Tauqeer, M. (2012). Energy Crisis of Pakistan | World Energy Resources [online] Scribd.
Available at: https://www.scribd.com/doc/116557297/Energy-Crisis-of-Pakistan [Accessed 12
May 2019].
[4]. Kissana, z. (2010). History of Energy Crisis From 1947 to 2010 | Globalization [online]
Scribd. Available at: https://www.scribd.com/doc/30139184/History-of-Energy-Crisis-From-
1947-to-2010 [Accessed 12 May 2019].
[5]. Asif, M. (2012). Energy crisis in Pakistan: Origins, challenges, and sustainable solutions.
OUP Catalogue.
[6]."[Initiatives] Energy Department, Govt. of the Punjab,
Pakistan".www.energy.punjab.gov.pk. Retrieved 27 May 2018.
[7]. Javaid, M. A., Hussain, S., Maqsood, A., Arshad, Z., Arshad, A., & Idrees, M. (2011).
Electrical energy crisis in Pakistan and their possible solutions. International Journal of Basic &
Applied Sciences, 11(5), 26-35.