Energy Systems of Pakistan

Contents of the Presentation
• What is Energy/Power System of Pakistan?

• What is Energy Mix of Pakistan?
• What are Economic Challenges of Pakistan?
• What can be role of Chemical Engineer like You in the Economic
Development of Pakistan?
• What should be Future Strategy of Pakistan in short as well as long
term?
• What are Energy Challenges of Local Industry?
term?
Energy/Power System Importance [1]
• Power System is of significant importance for any country because of the following
reasons:
 It is life line of an economy.
 Country`s dynamic tool for social and economic development.
 Essential for running setup of factories and industries, for the running of vehicles, for cities lighting.
• Energy demand tends to increase day by day because of industrial development and
population growth.
• Energy/Power supply less than demand leads to formation of energy crisis.

Energy/Power System of Pakistan [1]
• Power in Pakistan is produced, transferred, spread and retail provided by two main public
sector utilities:
 Karachi Electric (K-electric) for the Karachi and its nearby regions.
 WAPDA (Water & Power Development Authority) for all of Pakistan (except Karachi)
• WAPDA power division has been organized into distinctive communal units comprising of :
 4 GENCO`s
 10 DISCO`s
 1 TransCO (NTDC)
Generalized Power Sector of Pakistan [1]
NTDC
DISCO`
GENCO Power Wing
s
``s
Finance Common
Wing Services
Generation Transmission Distribution
Power Locations Grid Stations/Transmission Electricity

utilizing thermal Lines, Operation & Boards Areas
energy Maintenance
Existing Structure of Power Sector [3]
Govt. of Pak
Ministry of Water & Pakistan Atomic NEPRA Private Sector

Power Energy Commission (Regulator)
CHASN KANUP
WAPDA AEDB PEPCO PPIB
UPP P
Mega Water DISCO` SPP`s/

GENCO NTDC IPP`s KESC
Dams Projects s CPP`s
Energy/Power Sector of Pakistan [1]
• Distribution of electricity to end users is the responsibility of 10 DISCO`s, KESC fulfill its
complete plea with its own generation in addition of obtaining from NTDC, IPP`s and from
Karachi Nuclear Power Plant.
Total Installed Capacity [1]
• There are 4 main power companies in country, which consist of:
 Water & Power Development Authority (WAPDA)
 Karachi Electric Supply Company (KESC)
 Independent Power Produces (IPP)
 Pakistan Atomic Energy Commission (PAEC)

Statistics of Installed Capacity (2010-2015) [4]
A. Country (Public & Private)
Economic Year 2010 2011 2012 2013 2014 2015

Finale on 30th June
Set up Capability (MW)
WAPDA Hydro 6444 6516 6516 6733 6902 6902
WAPDA Thermal 6784 6650 7222 7182 7880 7663
IPP Hydro 111 111 111 195 195 213
IPP Thermal 7456 9103 8666 8670 9021 9085
Nuclear (PAEC) 462 787 787 787 787 787
Wind 0 0 0 50 106 256
Total 21,257 23,167 23,302 23,617 24,891 24,906
Addition during 956 1910 135 315 1274 15
year (MW)
Installed Capacity Pakistan (%age) [4]
Nuclear, 3.20%
Wind, 1%
IPP`s, 36.50% Hydro, 28.60%
Thermal, 30.80%
B. PEPCO (Public & Private)
Financial Year 2010 2011 2012 2013 2014 2015

Finale on 30th June
Set up Capability
(MW)
WAPDA Hydro 6,444 6,516 6,516 6,733 6,902 6,902
WAPDA Thermal 4,829 4,829 4,841 4,841 5,458 5,788
IPP Hydro 111 111 111 195 195 213
IPP Thermal 7,183 8,880 8,381 8,381 8,793 8,857
Nuclear (PAEC) 325 650 650 650 650 650
Wind 0 0 0 50 106 256
Total 18,892 20,986 20,499 20,850 22,104 22,666
Installed Generation Capacity of PEPCO [4]
Nuclear, 2.90%
Wind, 1%
Hydro, 31.30%
Thermal (Pvt.), 39.10%
Thermal (Pub), 25.60%

C. KESC/K-Electric
Financial Year 2010 2011 2012 2013 2014 2015

Finale on 30th June
Set up Capability (MW)
KESC Thermal 1,955 1,821 2,381 2,341 2,422 1,875
IPP (Thermal) + oth 273 223 285 289 228 228
Nuclear (PAEC) 137 137 137 137 137 137
Total 2,365 2,181 2,803 2,767 2,787 2,240
KESC: Source for Energy Generation [4]
GENCO (th),
13.65%
Hydro, 34.02%
IPP`s (Th), 47.26%
Nuclear, 4.12%
Wind, 0.01%
Installed Generation Capacity [4]
A. Major Hydro Units
Sr. Name of Location Province Station Capability Capability
No. Power Station Total (MW) in (MW) in
Summer Winter
1 Tarbela Tarbela KPK 3478 3702 1874
2 Mangla Mangla AJK 1000 1120 450
3 Warsak Warsak KPK 243 190 20
4 Chashma Chashma Punjab 184 184 184
5 Ghazi Barotha Ghazi Barotha Punjab 1450 1450 1160
6 Khan Khwar Shangla KPK 72 68 68
7 Allai Khwar Shangla KPK 121 68 68
8 Dubair Khwar Shangla KPK 130 68 68
9 Jinnah Mianwali KPK 96 68 68
B. Small Hydro Units
Sr. Name of Location Province Station Capability Capability
No. Power Station Total (MW) in (MW) in
Summer Winter
1 Nandipur Nandipur Punjab 14
2 Shadiwal Shadiwal Punjab 14
3 Kurram Garhi Kurram Garhi KPK 4
4 Chicoki Mallia Chicoki Mallia Punjab 4
5 Dargai Dargai KPK 20 128 41
6 Renala Renala Punjab 1
7 Malakand Malakand KPK 10
8 Chitral Chitral KPK 1
9 Rasul Rasul Punjab 22
C. Thermal (Public)
Sr. No. Name Location Province Derated Fuel Type Fuel Type
Capacity (Primary) (Alternate)
GENCO-1
1. Jamshoro Jamshoro Sindh 180 FO
180 FO
170 FO
170 FO
2. Kotri Kotri Sindh 10 Gas HSD
10 HSD
40 HSD
40 HSD
40 - -
Sub Total (GENCO-1) 820
C. Thermal (Public)
Sr. Name Location Province Derated Capacity Fuel Type Fuel Type
No. (Primary) (Alternate)
GENCO-2
1. Guddu Guddu Sindh Steam (425) Gas FO

Gas Turbine (986)
Comb. Cyc. (491)
2. Sukkur Sukkur Sindh 0

3. Quetta Quetta Balochistan Gas Turbine (25) Gas
Sub Total (GENCO-2) 1927

C. Thermal (Public)
Sr. Name Location Province Derated Capacity Fuel Type Fuel Type
No. (Primary) (Alternate)
GENCO-III
1. Muzaffargarh Muzaffargarh Punjab Steam (1130) Gas FO

2. Faisalabad Faisalabad Punjab Steam (100) Gas HSD
Gas Turbine (168)
Comb. Cyc. (42)
3. Multan Multan Punjab Steam (90) Gas FO
4. Shahdra Shahdra Punjab Gas Turb. (30) Gas HSD
Sub Total (GENCO-III) 1440
C. Thermal (Public)
Sr. Name Location Province Power Station Fuel Type Fuel Type
No. Type & Derated (Primary) (Alternate)
Capacity
GENCO-IV
1. Lakhra Coal 1- Lakhra Sindh Steam (30) Coal -

3
Sub total (GENCO-IV) 30

GENCO-V
1. Nandipur Nandipur Punjab Gas Turb. FO HSD
Comb. Cyc. (425)
Sub Total (GENCO-V) 425
Isolated GEN
1. Pasni Pasni Baluchistan Diesel Engine (11) HSD
2. Panjgoor Panjgoor Baluchistan Gas Turbine (24) Gas HSD
C. Thermal (Public)
Sr. No. Title of Power Generation Locations Capacity (MW)
1. GENCO-I 820
2. GENCO-II 1927
3. GENCO-III 1440
4. GENCO-IV 30
5. GENCO-V 425
6. ISOLATED GEN 35
TOTAL CAPACITY BY THERMAL PUBLIC 4677

Sr. No. Title of Power Position/Station Capacity (MW)
1. Major Hydro Units Summer 6,918
Winter 3,960
2. Major Hydro Units Summer 128
Winter 41
3. Thermal (Public) 4,677
4. Thermal (IPP) 8,649
5. Hydro (IPP`s) 213
6. Wind 256
Total Capacity 24,842

Progress of Installed Generation Capacity
[4]
Financial Year
Total
Wind-up before WAPDA IPP `s PAEC
(MW)
30th June
Hydro Thermal Hydro Thermal Wind Nuclear
%age %age %age %age %age %age
Pre-WAPDA 44 56 119
1960 69 31 366
1970 50 50 1,323
1980 58 42 2,685
1990 45 55 6,409
2000 33 34 33 14,444
2010 34 26 0.6 38 1.7 18.892
2015 30 26 0.9 39 1.1 2.9 22,666
Installed Capacity for Generation on basis of Fuel Type
[4]
Total
Fuel Type
Power
Sr.
Position/
No. Hydro Gas FO HSD Coal Nuclear Wind
Station
1 Hydro 6,902 0 0 0 0 0 0 6,902
2 Thermal 0 4,946 675 17 150 0 0 5,788
3 IPP 213 5,228 3,629 0 0 650 225 9,976
4 Total 7,115 10,174 4,304 17 150 650 225 22,666

PEPCO Energy Generation: Type of Fuel
[4]
Nuclear, Wind,
Coal, 0.11% 5.13% 0.47% Imports, 1.85%
Oil, 35.52%
Hydro, 33.41%
Gas, 23.52%
Energy Generation by Source [4]
Financial Public IPP
Year Wind-
Wind Imports Total
up before
30th June Hydro Thermal Nuclear Hydro Thermal
%age %age %age %age %age %age %age GWh
1990 53.9 46.1 31,432
1995 49.6 50.4 46,131
2000 34.5 34.3 31.2 55,873
2005 34.8 30.2 3.1 0.1 31.6 0.2 73,520
2010 31.4 22.1 2.4 0.6 43.2 0.4 88,921
2015 32.3 13.6 5.1 1.1 47.2 0.2 0.5 97,477

KESC Sources for Energy Generation [4]
Hydro, 34.02%
IPP, 47.26%
GENCO, 13.65%
Nuclear, 4.12%
Wind, 0.01%
Load Factor [4]
Maximum Demand (MW)

Financial
System Load
Year Wind-
Energy Factor
up before
Recorded Computed at System Peak Time (GWh) (%age)
30th June
Incl. exp to
Total PEPCO KESC
KESC
1997 8,505 8,772 8,552 220 50,786 68.17
2000 9,556 9,609 9,289 320 55,873 66.75
2003 11,000 11,044 10,484 560 64,040 66.46
2006 13,066 13,847 13,212 635 82,225 71.84
2009 14,055 17,852 17,325 527 84,377 68.53
2012 15,062 18,940 18,280 660 89,721 68.00
2015 16,233 20,966 20,326 640 97,477 68.55
term?
Sources of Energy in Pakistan [1]
Thermal Hydel
Solar Nuclear
Wind
Energy Sources
• Oil:
 In early 90`s, oil was mainly used by transport and power sectors with share of 50% and
25% respectively. However, because of crude oil increased prices since year 2001 i.e.,
increase in prices from US $22.99/barrel to US $ 50.04/barrel which is almost 118%
rise, their usage declined during the years of 2000-01 and 2005-06.
 Due to this reasons, government of Pakistan initiated motivated pro-market
improvement program in the sector.
 Basis of formation of such program was to restrict the role of government to issues
related to policies, and formation of independent regulatory authority which will deal with
the prices of oil and all other related responsibilities like shipment, import etc.
 Government of Pakistan also modified the refineries “Guaranteed Return Formula” and
changed it to “Import Parity Price Formula”.
 With former formula, refiners were performing their operations with fixed return formula
in which return was covered in 10-40% of their parity range. It means that if refineries
get any profit, government will have to face loss.
Energy Sources
• Oil:
 With the development of new formula, addition of import tariff in petroleum products
FOB prices is done for the determination of prices of ex-refinery.
 Government of Pakistan introduced policy of Power Generation policy in 2002 in which
responsibility of doing projects having capacity above 50MW was provided to “Private
Power & Infrastructure Board” for the utilization of local/native resources.
 As a result, oil`s increased prices made it unfavorable to be utilized for power sector
and eventually was replace by gas because electricity was been produced by
consumption of 50% fuel (Diesel Oil + Fuel Oil).
 Fuel prices kept increasing as a result of government kept in providing subsidy. In years
2003-04 and 2005-06, oil was mainly consumed by rapidly developing transport zone as
modification towards CNG wasn`t completely developed.
 As time progresses, it was eventually revealed that its better to use gas than oil
because of high prices of oil. However, due to crisis of gas management in our country,
share of oil in power sector started growing.
Energy Sources
• Oil:
 Luckily, the oil prices reduced in international market and government immediately
decreased the prices to Rs67.79/liter in 2015 which are currently Rs63/liter. Decrease in
oil prices in international market led towards reduction in import bill (saving of approx. 3
billion).
 Due to decreased oil prices, an exceptional purchase of petrol seems to be increased.
However, PARCO (Pakistan Arab Refinery Ltd., largest producer of oil in Pakistan)
faced shut down during these decreased prices tenure because of tumbling of lines of
11KV in Muzaffargarh area. In the mean time, NRL (National Refinery Limited) also
faced shut down because of leakage in Distillation tower.
 As a result, they were unable to produce oil for market which caused difficulties for Oil
Marketing Companies. As per the rules, OMC should have a minimum of 20 days stocks
in order to meet any unforeseen scenarios. However, this was not fulfilled by these
companies which caused shortage of petrol in the local market because the demand of
petrol increased from 12,000 metric tons (projected demand) to 15,000 metric tons.
However, government efficiently tackled the issue and issue was resolved. [2]
Energy Sources
• Oil [2]
Energy Sources
• Oil [2]
Energy Sources
• Natural Gas:
 Looking at the Pakistan`s gas transmission and distribution network, it is revealed that
this setup is well established and ranks best in the region. However, due to its increased
usage in power sector etc. demand and supply gap is increasing sharply.
 This gap initiated as a result of usage of gas in power sector in place of oil because of
increased prices of oil and gas been low-priced as compared to oil.
 Pakistan 2 major gas utility companies SNGPL & SSGCL increased their setup by laying
72km transmission network of gas, services lines, by 759 km 1040 km distribution and
linked 59 villages/town to network of gas.
 Hence, all over the country, 206,473 extra connections of gas were provided. Till now,
the total gas production capacity is limited to only 4,000 MMCFD, which is still lower
than demand 6,000 MMCFD, hence gap is producing.
 Another threat which is linked to the gas sector is running down of existing resources of
natural gas while discovery of new resources for natural gas is relatively slow process.
Energy Sources
• Natural Gas:
 History suggests that during winter season, the demand of gas is increased in domestic
areas, in maximum regions of SNGPL & some parts of SSGCL system. However, the
shortage of gas is also been experienced in summer season as well because of
increased supply-demand gap, and weakening of existing natural gas resources.
Pakistan Government has developed certain policies in order to increase production of
gas to lessen the gap b/w supply and demand. Till now, domestic and commercial
sectors along with power sectors have been given priority over fertilizer, general
industry for the supply of gas.
 Priority set is of the decreasing sequence as follows:
 Domestic & Commercial Sectors
 Power Sector
 General Industry, Fertilizer
 Cement Industry
 CNG Region
Energy Sources
• Natural Gas:
 Approx. 4.8 million people gas requirement is fulfilled by SNGPL which incorporates
domestic, commercial, industrial and CNG groups, by means of its network of
distribution & they are all been provided with gas supply through a same network.
SNGPL is increasing its gas supply per annum by 40-50 MMCFD (summer season
average gas consumption is basis for it) and 80-100 MMCFD (winter season average
gas consumption is basis for it).
 However, the process of finding new natural gas resources is a slow process which is
leading towards supply and demand gap and consumers that exists at the end of
distribution network suffer badly especially in winter season.
 Due to this gap, SSGCL showed their ability/potential towards management of gas load
“on as and when required basis”.
Energy Sources
• Electricity:
 This energy source is secondary source to get energy but has gained importance and
becomes necessary specially for household, transport and industrial sectors. Shortage
of electricity/power poses severe prominent challenges towards economy by thrashing
rate of growth of GDP & producing social disturbance.
 Referring to NEPRA report of State of Industry, it was estimated by NEPRA “The power
sector is responsible for 2 to 3 percent reduction in the annual GDP of the country”. It is
required that economic developing country Pakistan should understand incorporation of
Direct and indirect costs in exact cost & its undeviating association with development.
As the time progresses, the modernization took place, many such things have
developed that have promoted the more usage of electricity in domestic sector.
 Since, providing electricity to domestic sector is first preference of government, there is
less electricity available for industrial sector, as a result, they have developed their own
in-house setup for electricity generation and they are termed as Independent Power
Producers. Orient, Nishat etc. are example fo these IPP`s. These sectors are termed
IPP`s under the Power Policy 2002.
Energy Sources
• Electricity:
 This policy cheer the usage of gas as fuel for power generation and utilization of power
projects related to hydel power. So, gas usage for power production starts increasing
subsequently.
 In 2011, as per the decision of “Economic Coordination Committee of the Cabinet”, first
priority of gas supply was given to domestic users followed by commercial ones, then
power producers and at the end to fertilizer sector, the use of oil for power generation
starts increasing and so does decreasing the usage of gas. “National Power Policy
2013” also emphasized the same priorities for gas supply.
 This policy also stressed upon that government should find ways for utilization of local
resources i.e., thar-coal, and hydel for production of lesser cost and reasonably priced
electricity to supply it to different sectors.
 As of now, power production by hydro source has gained importance because of lesser
cost, but poses a demerit that it requires large lines for transmission. Currently, work is
in progress on bigger hydro projects in order to alleviate the increasing cost of power
general by thermal sources. [2]
Energy Sources
• Coal:
 Government of Pakistan believes that thar-coal project will lead towards elimination of
energy crisis in the country, and will lead towards generation of cheaper electricity. This
project is ranked as great significance project and financial support will be provided by
Chinese institutions. Thar coal project is basically composed of 3 projects, “China-
Pakistan Economic Corridor (CPEC)”, “Sindh Engro Coal Mining Company (SECMC)” &
“Sino Sindh Resources Pvt. Ltd.” It is expected that all these 3 projects will be
completed by year 2018 and will start producing 2400 MW.
 Thar coal is not only the focus of Government. Their energy department is also looking
for other resources for energy production as well and for this purpose, have developed
two companies named as “M/s Sindh Nooriabad Power Company Limited (SNCPL) &
Sindh Norriabad Power Company Private Limited Phase 2 with a lead partner of M/s
Technomen Kenetics Private Ltd ” in order to power generation facility of 100 MW by
gas. [2]
Energy Sources
• Nuclear Power:
 Nuclear power is been produced by Pakistan Atomic Energy Commission. This source
is currently running 3 power plants producing power by nuclear energy. 1st power plant
is named as “Karachi Nuclear Power Plant (KANUPP)”, which started providing
electricity in 2002 after passing through project life of 30 years, required overhauls and
safety retrofits. Two other power plants utilizing nuclear energy named as “Chashma
Nuclear Plant unit-1 and unit-2” are running in efficient way.
 As per the performance of nuclear power plants, work is in progress for the
development of 4th and 5th power plants of units C-3 & C-4 at sites of Chashma.
Capacity of power plants is 340 MW/unit. These projects are expected to complete in
2016 and will be linked to National Grid.
 6th and 7th power plant development for electricity generation are alos under
consideration. [2]
Energy Sources
• Wind:
 In Pakistan, number power plants utilizing wind energy is 31. Total power generation
capacity of energy by wind is 1810 MW. In addition to them, 150 MW 3 power plants
utilizing wind energy construction is in progress in Sindh each of capacity 50 MW.
• Solar:
 Power plant to produce energy, by utilizing solar energy, inauguration was done by PM
in 2015. This power plant have capacity of 100 MW. For this purpose, 4 companies
submitted their project achievability study to AEDB, one of them was successful to get
project. Further benefactors are also preparing their feasibility reports to get projects.
[2]
Energy Sources
• Biomass/Waste to Energy:
 4 projects are currently in progress each of power generation capacity 12 MW in Sindh,

Sialkot, Faisalabad and Mardan for production of energy from biomass and wastes.
 Co-generation i.e., power from biomass/bagasse structure was also approved in 2013
by ECC. It is expected that these projects will complete in 2-3 years, will start working
and will provide approx. 1500-2000 MW power. [2]
Energy Mix of Pakistan (2013-2014) [6]
Coal,
LPG, 1% 6.00% Nuclear, 2%
Hydel, 11.00%
Gas, 47%
Oil, 33%
LPG, Nuclear,
1% Coal, 6.00% 2%
Hydel, 11.00%
Gas, 47%
Oil, 33%
Nuclear, 3% Wind & Solar, 0.50%
HydroPower, 31.50%
Thermal, 65%
Energy Mix of Pakistan (2014-2015)
• 58.5% is contribution of public sector in this total energy mix. Public sector contribution
incorporates power generation by sources of thermal and hydropower. Private sector
contribution incorporates power generation by thermal, hydropower and wind energy and
is total of 41.5%.
• More precisely speaking, contribution from public sector is mainly incorporated of power
generation from hydropower (31%), Gencos (25%), Nuclear (3%).
• Contribution from private sector is mainly incorporated of power generation from thermal
(40%), wind (0.5%) and hydropower (1%).
• Since, nuclear energy is also a form of thermal energy, it can be said that energy mix of
Pakistan is basically 68% of resources of thermal energy while remaining 32% constituted
of renewable resources which can be wind, hydropower or solar.
• On analyzing figures provided from government for the duration of 2015-2018, it is
revealed that Pakistan has plans for addition of 10,400 MW by completing projects of LNG,
wind, solar and hydro power.
Energy Mix of Pakistan (2014-2015)
• 22,571 MW is current installed capacity of Pakistan. Out of 22,571 MW, 15,474 MW is
produced from thermal resources while remaining 7,097 MW is produced from hydropower
generation.
• Since it is planned to add 10,400 MW into system, it means that total installation capacity
by end of 2018 will be 32,971 MW upon completion of above mentioned projects. If this
happens, it will eventually lead to elimination of electricity load shedding by end of 2018.
• So, by end of year 2018, the total power generation will comprise of 52% energy from
renewable resources while remaining 48% will be obtained from thermal resources. This
thing will be totally workable. [7]
Expected Energy Mix of Pakistan (2018)
Coal, 9%
Hydroelectric, 35.20%
Oil, 27.00%
Gas, 26.70%
Nuclear, 2%
term?
Overview of Pakistan Economy
• At independence time, the population of Pakistan was around 30 million with income of
100$ per capita. Agriculture probably did about 50 percent of economic production without
manufacturing because industries were situated in India. So, to feed 30 million people, we
started dependency on PLA-480 which was imported from USA.
• Currently, with 170 million people, income per capita is 10 time more than that at
independence time i.e., 1000$.
• When we look at world regarding export of rice, Pakistan ranks 3rd. It produces a sufficient
quantity of food for feeding of its population. Approximately 3 M tons /annum of rice is
exported, which is more than our requirement.
• With respect of biggest manufacturers of textile production countries, Pakistan is ranked at
5th.
• With passing time, the contribution of agriculture towards our economy has decreased
from 50% to 20% now.
• Despite lesser contribution of agriculture to economy, still we have a huge quantity of food
means our productivity is more. Agriculture doesn`t only mean crops. It also takes into
account other factors as well. Mutton, beef, dairy products, poultry and similar products
constitute of agriculture which is actually 50% of Pakistan`s agriculture output.
• When comparing countries with higher milk production, Pakistan ranks 3rd.
• In agriculture, there comes an improvement/modification i.e., total agriculture constitutes
36% of major crops while remaining is incorporated by minor crops i.e., fruits, orchards,
vegetables, fisheries.
• Hence, our infrastructure reveals that same land and same resources are being effectively
utilized for better production.
• If we compare it with USA, although agriculture contribution is merely 2.5% with a
population of 300 million, still they are capable enough to feed their own people along with
export to the other parts of the world as well.
• Thus concept of agriculture contribution relates that if contribution is high, its productivity is
higher rather than its share in GDP.
• Unfortunately, the decline of contribution of agriculture from 50% to 25% lead to downfall of
our economy. In 1969, Manufactured good`s export of Pakistan was higher than combine
export rates of Indonesia, Philippines, Thailand & Malaysia. Korea made its 5 year
development process in 1960`s & surpassed us.
• Our downfall in economy has even hurt so much that now, our economy value is even
lesser than economy of Vietnam (Vietnam was completely demolished by war but they
improved).
• India whose economy was lesser in 90`s when compared to our economy, is now leading.
Pakistan Economy Challenges
• Our consumption is more and saving is less.
• Export rate is less but import rate is more.
• Government earning is less but expenditure is more
• World trade share is decreasing
• Poor Social Indicators
• Water & Energy Shortages
• Business cost is high
• Governance crisis and weak in implementations
• Uncertainty and Unpredictability due to inconsistency.
• Political instability, Law & Order, Security.
• Our Consumption is more and saving is less:
 Our living standard as a nation reflects that we don`t prefer savings and we want to
spend more money rather than saving e.g., if we have 100 rupees, our saving is merely
15 rupees while consumption is 85 rupees. It reflects that amount of money required for
growth of economy and further advancement is insufficient with this trend.
 In order to grow e.g., by 6%, a minimum of 24-25% investment rate is required. If
growth is relied on domestic savings, it is evident that saving rate needs to be increased
i.e., from 15% to 25% at least.
 Comparing our economy saving with other countries reflect that we have to improve this
parameter i.e., India saving rate is 34%, while that of China is 50%.
 We have to increase our saving rate i.e., to double it, in order to prosper our economy
otherwise we have to rely on foreign resources. [4]
• Export Rate is Less but Import Rate is More:
 We have to bring a positive balance of trade by focusing more on export rather than on
import. However, our dilemma is that our import rates are higher than export rates. [5]
 Approximately 80% of imports were balanced by earnings of our exports in 2007-2008.
However, this ratio has decreased to 50% only. Which means a gap of only 50% imports
are balanced by earnings of our exports which has hurt our economy very badly. This
happens as we relied more on foreign resources than that of locally made resources.
 We prefer to use foreign made products rather than local made products and that led to
increase in the difference between earnings from export and expense of import. We, as
a nation, have to change this mentality and attitude of relying on foreign products and
have to make more use of locally made products, as it will definitely lead towards lesser
import rates and will bring deficit down. [4]
• Government earning is less but expenditure is more:
 Difference between collected revenues per year and total spending/expenditures by

government is termed as Fiscal Deficit.
 Government of Pakistan distributes national income into two parts, 80% of it is
distributed to private sector while government takes 20% in its account which is further
distributed to defense, debt servicing, education & health development, overall
supervision etc.
 %age of profits generation is merely GDP`s 15% which can even decrease to 12-13% in
some worst scenarios. If we calculate the amount of tax paying by each individual,
government is taking 9 rupees out of each 1 rupee income as a tax.
 In 2007-2008, fiscal deficit appeared to be more than 7%, reflecting 13% of GDP is
income or revenue while expenditure is 20%. As a result, we started taking loans from
other countries or State Bank of Pakistan. If financing is been taken from Pakistan State
Bank, it has risky consequences as it leads to economy`s high rates of inflation, harmful
for middle class, fixed wages earning community and poor ones.
 The more the inflation rate, the more the difficulty in livings of people. In 1999, GDP
debt ratio was 100%, reflecting every person was under debt. This ratio decreased to 50
within next 6-7 years. However, for last 2 years, this ratio increased to 58% & by taking
into account borrowings, may increased to 60%.
 As per law of Fiscal Responsibility 2005, it is responsibility of Government that GDP
debt ratio must not exceed 60% & to keep it in limit, this debt to be reduced by 2.5%.
 However, we are not following this and such things are not happening in Pakistan. The
expansion of fiscal deficit is due to decrease revenue collection. India`s net tax rate is
15% although they still have fiscal deficit, while that of us is merely 9%.
 Some of our experts comment that defense sector is taking maximum of government
expenditure. However, its merely 20% of expenses of Government means merely
GDP`s 4%. This is not a large quantity of expense when compared with debt serving
which constitutes GDP`s 7-8% and approx. comprises of 40% of expenses of
Government.
 It is responsibility of Government to find ways how to increase revenues as increasing

revenues will lead towards balance in earning and expense.
 Incomes from agriculture are relieved, specialists, venders, wholesales, transportation
proprietors, and many other service provides escape from taxes by giving a minor
portion of tax.
 If this fiscal deficit grows as the trend is showing, the possibility of 1999 may repeat
again which needs to be avoided and government has to play major role. [4]
• World Trade Share is Shrinking:
 If we compare the share of Pakistan in world trade, it was 0.2% in 1990`s while now it
has decreased to 0.12%. World trade growth is higher when compared with output from
the world. In the same period, when we have almost reduced half of our share trade,
India has doubled its share in world trade i.e., 0.7% to 1.4%. This thing has disturbed
our economy and produced imbalance in exports/imports.
 Unfortunately, we haven`t yet learnt to take benefit from world's manufacturing
commodities as we are still stuck to few of them i.e., textile, rice, surgical goods, lather,
sports etc. Furthermore, we haven`t yet covered maximum market for our export and
our export is limited to only few markets i.e., the USA, EU & Middle East.
 We have to work on improvement in quality of our goods for which we need to do a
better research and implement findings of it so that we can compete with the market
without which our share in world trade will decrease to further in the coming years. [4]
• Poor Social Indicators:
 One of the most unfortunate reason of decline in Pakistan`s economy is that we haven`t
best indicators that can reflect us in global market such that in literacy, fertility rates,
primary enrolment ratios. These social indicators should be good. Even a poor country
like Tajikistan, when compared with Pakistan, has social indicators comparatively better,
i.e., literacy rate and primary enrollment ratios than that of Pakistan. Currently our
literacy rate is merely 58%. If we can increase it to 100%, then we might have per capita
income of 2000$ rather than 1000$. By this, even the poverty ratio can be decreased to
15-20%.
 The major problem of poor social indicators is due to the following reasons:
 We have inequalities in our countries different parts.
 Area of Baluchistan has lesser growth and is tend to lag behind the other 3 provinces.
 Due to resources unequal distribution in provinces, backwardness (Decline in Level of
education) has created and is growing in regions of lesser resources. [4]
• Water & Energy Crisis:
 Water and energy crisis are hurting our economy badly. One of the reasons of this crisis
is having water shortages, so we are unable to produce enough electricity. However,
other reason is often gets unnoticed. KESC is facing a serious loss. Only 55% people
are paying bills of electricity while remaining 45% are just stealing electricity, using it in
their homes or place where they are living and not paying anything. Pakistani
Government is paying 200 billions per year despite its limited resources to provide
subsidy for electricity. [4]
 This energy crisis is leading towards long hours of load shedding which have effected
industrial setup badly although companies get contract from foreign companies but are
unable to complete it on time due to electricity shortage and next time they are unable
to find any contract. Not only this electricity shortage results in shutting down of
industries and many projects, it also results in higher prices of CNG & Fuel.
Furthermore, Natural Gas load shedding has made a dead lock to economy. [4] [5]
 Unfortunately, since 1974, we are unable to make any dams as a result we have
approximately 20-25% water losses which could have utilized to form electricity if more
dams were present. [4]
• Water & Energy Crisis:
 Not only water losses are high, but water distribution to provinces is also non-
uniform/unequal, i.e., powerful land lords when compared with poor farmers obtains
more share of water, as a result, poor farmers productivity is merely 1 tons when
compared with large holders who have production of 3 tons. By providing equal water
availability between farmer & power land lords, farmer will be able to approximately
double its production which would eventually result in additional income, sufficient
expansion in export rates of foods grains, cotton, vegetables and fruits leading towards
more export earning of Pakistan. Global warming can also pose difficulties for us in
future as well as climate change causing glaciers in Himalayas to melt.
• Business Cost is High:
 In Pakistan, to do business, quite high cost is required. Pakistan is ranked bottom half of
world`s ranking where business cost is higher. This higher cost is not because of any
significant parameter, it happens only because of carelessness of bureaucracy who sit
idol and are unable to take timely decisions. They didn`t work until they have some profit
from it or there is some political pressure on them. Thus, small and medium business
face difficulties because of this type of behavior.
 If local government invites some foreign investors to invest here or to do any business,
they face problems i.e., unavailability of electricity, water, gas, land etc. This also occurs
because of poor coordination b/w different government agencies. Various problems i.e.,
agencies inspections, court system delays etc. mostly result in well established firms
unprofitable.
• Governance crisis and weak in implementations:
 There is unfortunate aspect of our country `s governance that our federal and provincial
governments make policies regarding health, education, agriculture, trade etc. but their
implementation is too weak that there is hardly any record of it. Usually the policies
made are of 5 years, but due to bad governance, they are not implemented leading
towards more economical challenges for Pakistan.
 Merit system needs to be implemented regarding recruitment, performance evaluation,
promotion, bonuses etc. Without this thing, there won`t be any significant change in
quality of governance.
 Orders are usually given from top but they are not implemented and remained just a
piece of paper, summaries are usually been approved, but they also remain part of just
papers and no practical implementation of them is followed. Governance issue needs
attention without which, it won`t be possible to speed up economical growth which is
required. [4]
• Governance crisis and weak in implementations:
 There is unfortunate aspect of our country `s governance that our federal and provincial
governments make policies regarding health, education, agriculture, trade etc. but their
implementation is too weak that there is hardly any record of it. Usually the policies
made are of 5 years, but due to bad governance, they are not implemented leading
towards more economical challenges for Pakistan.
 Merit system needs to be implemented regarding recruitment, performance evaluation,
promotion, bonuses etc. Without this thing, there won`t be any significant change in
quality of governance.
 Orders are usually given from top but they are not implemented and remained just a
piece of paper, summaries are usually been approved, but they also remain part of just
papers and no practical implementation of them is followed. Governance issue needs
attention without which, it won`t be possible to speed up economical growth which is
required. [4]
• Uncertainty and Unpredictability due to inconsistency:
 There is a dilemma of our country that every new government don`t want to carry
forward the projects started in the previous government tenure. This way of thinking has
hurt our country`s economy. Each incoming government should assess the strengths
and weakness of the on going project, remove the weakness and carry forward them in
their tenure. As soon as they are completed, country start getting benefit from these
projects, i.e., new educational institutions, motorways etc.
 However, incoming government blames previous one by stating that the ongoing
projects are not economical w.r.t country betterment and they are terminated. Then they
are re-initiated by the same government to take whole credit by stating that they have
modified this project after passing a certain time in their tenure, which results in
increased cost of project i.e., approx. 3 times the cost when project started & it takes
more additional years to complete. So, Pakistani population suffer the project facility for
long time as a result of such inconsistency.
• Uncertainty and Unpredictability due to inconsistency:
 Since the length of projects depend on tenure of government, it means that if the
government who has initiated the particular project, tenure has been completed, then
incoming government won`t extend it at any case immediately and this state causes
uncertainty regarding future. This unpredictability forces the investors to think whether
they should do investment in this country`s projects or not as if their project length is
such that the existing government tenure will end and new government will come about
which they remain uncertain whether they will extend their project or not.
• Political Instability, Law & Order/Security:
 Political stability is required for robust economical growth. Pakistan army has played a
vital role in bringing stability, and improving law and order situation. Hopefully, the
country will soon get rid of this political instability, pathetic law and order situation, and
insecure situation, and investors will start investing in our country for the projects and
will eventually lead towards betterment in economy.
 In 2007, community of internal investor ranked Pakistan as one of the favorable places
for investment. For the reflection of 30 years oath for Pakistan which will be paid in
2037, 30 year piece of paper was drifted and Pakistan grew 4 times over payment at
worth merely 300 basis points over head the US assets. But we lost the same sequence
in the previous 2 years or so. Therefore, it is commanding that the journey that has been
affected by terrorism, we have to start it again by promoting a, safe and sound,
nonviolent & steady administrative environment.
term?
Economic Development
• There exist many definitions regarding economics. It is basically a human art which is used
to study the connection b/w resources that are rare, and use of these resources in various
ways.
• It can also be said about economics that it the principle that gives knowledge to the people
about selection of resources that are limited in availability in order to fulfill their infinite
demands.
• Economics also enables society to decide about the production scheme i.e., what is
required to produce, how it will be produced, and production for whom.
• Engineers are advised to study economics so as to avoid them from deceive of
economists.
• Development in economy is actually countries or regions economic wealth development for
the welfare of their population.
• Assumption made in process for development of economy is that lawful and official
modifications have been done in order to provide inducements for invention and for
funding for the development of a system for manufacture and supply of goods and facilities
in an efficient way.
Economic Development
• Development in economy corresponds to justifiable rise in standards of living which
reflects rise in per capita salary, improvement in health and education facilities along with
protection related to environment.
• Development in economical corporations perform role as independent units, while in some
instances as local government departments. The function of them is to find out
opportunities related to innovative/new economical development and to maintain current
business capital. Regarding new projects related to economical development, rigorous
race exists b/w different societies & nation-states.
• Formation and retention brawl is more strengthened by utilization of different kind of
variations regarding incentives regarding economy towards the prospective business.
These inducements differ significantly but could be significantly debated.
• Amount of attainment inside this business is normal work establishment, growth related to
economy and rising or booked tax base. [9]
Chemical Engineer Role in Development
• Sustainable development in economy can be occurred as consequence of formation of
universal thoughtful community. People`s community is developed which is working as a
team for common ends and in order to fulfill the basic/simple demands and requirements
of all our people.
• Idea behind maintaining development regarding economy is linked with accomplishment of
these important objectives. Policies & plans made to fulfill their own demands are depiction
of these ideas.
• In modern era, accomplishment of sustainable development, regarding economy,
necessitates an innovative and different methodology regarding policy development and its
implementation.
• Government looks forward to have a coordination b/w policies development and to
implement them through the community division, economic groups, and through groups
which are making environmental policies.
• Another approach towards which government is interested, to have bigger partnership b/w
federal, provincial governments, economic bodies, private businesses and other communal
groups.
• Chemical Engineer can play a big role and they should lead this innovate revolution in
industrial economical situation. Professional organizations in the world have remarkable
leadership possessing personnel in order to make supportable economical growth as high
importance in Engineering and business, both in tutoring and in training for future
engineers.
• It is responsibility of chemical engineer to promote practical education codes, do programs
regarding mentoring, and changes in policy that will lead towards role of chemical engineer
in leading this economic exposure.
• Courses that being studied in chemical engineering courses in higher learning institutes
should also include course relevant of obtaining knowledge of business and skills at level
of 1st and 2nd year to able chemical engineers to associate engineering practices to the
reality of on ground business so as to donate completely towards their nation`s economic
development. By implementing this practice, the chemical engineers can play role in
running country`s business and play a vital role in economic development.
• For workable future planning, standard shift towards an organized outlook is required
which includes the composite inter-dependence b/w single, public, social, spiritual,
financial, and administrative actions and the bio-sphere.
• Chemical engineer needs to be multi-disciplined. They should have connections with
chemist, meteorologist, biologist, planners, economics, ethicists, and leaders of community
in extraordinary means so as to lead the public towards path of workable economic
development.
• Chemical engineers should have to provide solutions regarding complex problems
regarding environment and enhance workable development by coordination and
management of system specialists.
• They should have to play a vital role in making process of public policy in order to deliver
the right inducements for industry and other sectors to continue sustainable track so that
encouragement and support of engineers can be done for the designing of workable
technology for the purpose of economical growth that aids society in full way now and for
future.
• In Pakistan, Chemical engineers are playing a vital role in all production industries i.e.,
cement, power, fertilizer etc. They are running these plants and are at management
positions in these industrial sectors.
• As chemical engineers are involved in production, operation of the plants, so they can play
a vital role regarding optimization of process which will not only result in efficiency
enhancement of process/operation but also will be beneficial to reduce the production cost.
As a result, the companies will get profit in their production.
• Due to efficiency enhancement of the production/process, i.e., cement, soaps etc. the
product purity will be increased which can result in decrease in import of these products as
our population will prefer the local products rather than foreign products which can
eventually help us in improving our economy.
term?
Future Strategy (Short Term)
• There is serious need towards utilization of that energy which is still unutilized. For this
purpose, it is required that circular debt problem is to be address on temporary purpose
followed by solution of problem related to structural system. Currently, in power sector,
there are some of non-operational sectors of power needing small amount of speculation
and methodological improvements for revival purpose. If these power plants can be
resumed to produce energy, they can be so much effective that they can alone improve the
economical problems. These projects will lead towards energy flow to be smooth and will
result in improvement of demand-supply gap. [1] [10]
• As there is immediate need of power, wind turbine appears to be appropriate for this
purpose as their installation process is relatively fast as compared to nuclear plants and
dams which take almost 5-6 years and 2-3 years taken by thermal power plants to
complete. Utilizing power from wind can be a stepping stone towards solution of energy
shortage problems and for this purpose, progress on this project is in progress.
• Government competent experts needs to ensured that all the existing power plants in the
country should be repaired for the purpose of obtaining maximum energy from them. Not
only this, these authorities need to ensure that there power producer shouldn't be
overloaded as it causes outages of power. [1]
• The process of LNG export from the Qatar should be speed up.
• For import of LNG, deep freezing and setup related to gasification is required. For this
purpose, investment should be commenced. [10]
• The permission should be given to private sectors to prepare infra-structure of power
plants with their private evenhandedness and loans which are based on feasibility of
project in compliance with rules of government, limited in determination of reasonable rate
of power by means of sovereign commission of government, production industry, residents
and companies of power production and specialists by agreement.
• Power saving can be done by implementing a rule that all the markets and shopping
centers in the country should be closed before or maximum 10 p.m. This can save power
in various portions of each city and province by implementation of strict local system of
administration. This system although implemented in some various sections of cities but
need to be strictly implemented in whole country for its effectiveness. [1]
• The electricity theft is also a bigger problem which needs to be addressed. The electricity
theft should be declared as terrible crime and strict legal actions to be taken against those
who will do theft of electricity either by domestic sector or by industrial users. The penalties
should be imposed and minimum punishment of complete power cut off should be
implemented.
• The shareholders and workers of industrial and agricultural sectors should be educated
regarding implementation of new and more efficient practices towards energy and water
utilization which will lead towards reduction in energy wastage. [1]
• Beginning of a study for the estimation of external cost of present energy utilization
towards generation of electricity, for purpose of transportation and to meet industrial
requirement.
• Development of particular regulations incorporation of performance principles/standards,
and actions which are mandatory for industry and power producers to follow. [10]
• Subsidies i.e., capital and fiscal enticements should be targeted along with funds for
technological development for development of skills. For promotion of innovation, the
funds related to technological development shouldn`t be specific to technology.
• Establishment of a program to develop 2nd generation bio fuels with inducements for
promotion of bio fuels for purpose of oil.
• Establishment of projects related to technology of obtaining clean coal for purpose of
power generation.
• All the mentioned short term strategies require efforts from R&D. R&D budget to be
increased. Currently it is 0.25% of GDP. [10]
Future Strategy (Long Term)
• With respect to reserves of coal, Pakistan is ranked as 3rd in the world having reserves of
coal in country`s south-eastern part i.e., Thar. These reserves capacity is 33 trillion tons.
For solution of crisis of power/energy in Pakistan, the long term solution is to produce
power by utilizing coal as fuel. As compared to thermal energy utilization for power
production, utilizing coal as fuel for power generation is cheaper, which can be seen from
the fact that even 2% of utilization of thar-coal can result in production of 20,000 MW
electricity.
• Another long term solution is to construct more dams and nuclear power plants. For this
purpose, Government can take technical expertise from the countries i.e., China ,
Norwegian etc. who are currently producing electricity using hydro source. Rising water
shortage problems can also be considerably overcome by build up of new reservoirs of
water and dams.
• Old-fashioned transmission and dissemination systems needs replacement and their
restoration is required which can eventually lead to control of problem of line losses and to
protect against the dishonest users who prefer to use electricity by theft rather than having
their own connection.
• If we compare tariff of power production of natural gas and furnace oil, it is Rs6/kWh and
Rs14.5/kWh respectively. It means using furnace oil is not beneficial w.r.t economy. If we
analyze the previous 5 year trend, it can be easily seen that there is significant reduction in
sharing of natural gas for power production i.e., from 53% to 27%, and oppositely increase
in furnace oil usage i.e., 17% to 38%. This thing result in higher cost of power generation
resultantly caused increase of circular debt. To lessen the power crisis, it is essential
requirement that gas share for the power generation to be increased since cost of power
generation by natural gas is cheaper and will lead to reduced circular debt.
• Most critical long term policy is to update the country`s foreign policy in accordance with
needs of economy and energy. Continual improvement and growing links with upcoming
energy ironic countries shouldn't be neglected. [1]
• Completion of IPI gas pipeline for diversification of supplies of gas and to influence
Pakistan and India geo-political atmosphere in a positive way.
• Priority should be towards utilization of domestic primary resources of energy. For this
purpose, the activities regarding usage of resources like hydropower, nuclear power,
renewables, coal should be initiated. For sponsoring and management tools, Diamer-
Bhasha dam should be included in top precedence list.
• With respect to environmentally friendly source for power generation, nuclear energy
prevails, and target of production of nuclear energy of capacity 8000 to 10000 MW by year
2030, needs to be funded followed by launching program of educational and development
of skills. [10]
term?
Energy Challenges
• For economic development of any country, energy plays a vital role. Because of this
commanding role, industrial sectors should stimulate the increase in generation of energy.
There are total 3 areas in which energy is utilized; for electricity production, for production
of thermal energy, and for the purpose of transportation. Fossil fuels had been utilized in
previous two centuries for energy generation and to meet the requirements. However, this
source for energy generation is limited and is depleting day by day. Energy consumption of
oil per capita for Pakistan is 490 kg of oil equivalent, while that of China is 1320 and of US
is around 7900.
• In this modern era regarding energy utilization, Pakistan is facing two main problems.
 To find out the alternative of fossil fuels as its resources are depleting.
 To linkage b/w environment and energy.
Energy Challenges
• This linkage is usually observed for the purposes of production, usage, conversion of
energy. Considering scenario in Pakistan, environment problems are created due to
formation of undesirable compounds formed during energy generation like effects of
interior pollution due to biomass usage, particulate matters discharge, CO, SOx, NOx &
heavy metals generation as fossil fuel is being utilized for the purpose of energy
generation and to fulfill transpiration requirements.
• Energy production should be done in efficient way so does the utilization of energy.
Furthermore, it should be conserved by final consumer as well. Improvement in both
efficiency and conservation is required. Usually, energy efficiency is measured in terms of
kg of oil equivalent (kgoe) per $ 1000 GDP.
• In case of Pakistan, the energy efficiency is 219 kg of oil equivalent per 1000 $ GDP. For
India it is 211, for China it is 317, For Brazil it is 136, for UK it is 116, for France it is 143,
for US it is 183 and for Germany it is 131 kgoe per $1000 GDP.
Energy Challenges
• Pakistan energy efficiency value is lesser than many established countries. Lower in
energy efficiency means lesser clean energy. So, to get more clean energy, more
investment is required which is usually the case in case of Pakistan.
• If energy is efficiently utilized, it will lead towards lesser cost of erection of the new setup
as it will lead to lesser requirement of energy production ability. Interaction b/w energy
efficiency and clean energy can be termed as “Virtuous Cycle”.
• Pakistan can learn from China regarding increase in its energy efficiency who increased
their energy efficiency to 317 kgoe from 690 kgoe in just 15 years.
• For Pakistan industrial sector, the main issue/challenge faced by them is regarding
shortages in fuel supply and electricity provision to run their equipment and plant.
Furthermore, the industries are not doing projects for energy conservation and to optimize
energy efficiency. Since, government sector is not utilizing resources efficiently, they are
depleting over the time.
Energy Challenges
• China made energy efficacy in their system by the following actions:
 Stress on energy efficiency and conservation of energy especially for industry.

 Using key/primary resources of energy as major sources regarding supply of energy, in
the mean while, improvement in these resources management.
 Realization of importance of market in Local energy sectors.
 Energy production by coal to be reduced by growing the utilization of renewable
resources, hydro-electricity, natural gas, nuclear energy etc.
 Development of substitutive fuels for transportation
 Construction of storage of emergency oil.
Energy Challenges
• Implementation of these recommendations were done. Conservation of energy along with
efficiency in energy plan is required for reduction of intensity of energy by 20% b/w 2005-
2010, 3.6% annual average per annum.
• They also took the following steps for energy efficiency improvement:
 Reduction in generation of particulate matters, and pollutants i.e., SOx, NOx, CO, CO2,
CH4, etc. so that energy utilization can be done economically.
 Adaption of several rules and regulations related to optimize energy efficiency and
energy conservation.
 For development of skills, subsidies i.e., fiscal and capital inducements, funds related to
technology, and program related to funding to be targeted. & they needs to be evaluated
and adjusted accordingly.
 Setting targets of energy efficiency and continuous monitoring.
 Capabilities of governance should be adequate to the chore.
Energy Challenges
• Same problems are being faced by Pakistan. Pakistan can learn from the development of
China for the improvement of energy problems faced by industries.
• The only variance b/w China and Pakistan is that China makes extensive use of coal while
such extensive use of coal in Pakistan is under consideration.
• It is our need that we should make use of local resources i.e., coal, hydel power etc. for
energy generation. However, the coal utilized for this purpose should be clean, and
utilization of hydel power should be environmentally friendly.
• Pakistan should also consider to incorporate external cost in its choices of policy.
• Changeover to sources of sustainable energy is problem for Pakistan just like all other
countries.
Energy Challenges
• It is expected that in the next era that by means of updated technologies of energy, it
would be feasible to accommodate growth of short carbon path along with higher energy
efficacy, and resources of sustainable/workable energy. This would hopefully be better
replacement of fossil fuels which are depleting over the time. This can be done by using
technologies regarding:
 Coal to liquid and coal to gas,

 Carbon apprehension and storing and
 2nd generation biofuels utilization.
References
[1]http://icci.com.pk/data/downloads/63/1293619048_1.pdf
[2]http://budget.par.com.pk/economic-survey/2014-15/
[3]https://www.icmap.com.pk/Downloads/Booklet_Power_Sector_in_
Pakistan.pdf
[4]http://www.ntdc.com.pk/Files/power2015.pdf
[5]http://csscurrentaffairs.pk/pakistan-and-the-challenges-ahead/
[6]http://tribune.com.pk/story/931118/for-the-future-energy-experts-
group-envisions-plan-for-sustainable-future/
[7]http://www.technologyreview.pk/demystifying-pakistans-energy-
crisis/
References
[8]http://tribune.com.pk/story/532404/energy-power-generation-
capacity-expected-to-jump-46-by-2018/
[9]http://nigeriaworld.com/articles/2010/dec/093.html
[10]Husain. T, “Pakistan Energy Sector Issues: Energy Efficiency and
Energy Environmental Links”, 2010, Page # 33-59.

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Contents of the Presentation

• What is Energy/Power System of Pakistan?

 It is life line of an economy.

 Country`s dynamic tool for social and economic development.

• Energy/Power supply less than demand leads to formation of energy crisis.

Generation Transmission Distribution

Power Locations Grid Stations/Transmission Electricity

Ministry of Water & Pakistan Atomic NEPRA Private Sector

Mega Water DISCO` SPP`s/

 Water & Power Development Authority (WAPDA)

 Karachi Electric Supply Company (KESC)

 Independent Power Produces (IPP)

 Pakistan Atomic Energy Commission (PAEC)

Economic Year 2010 2011 2012 2013 2014 2015

IPP`s, 36.50% Hydro, 28.60%

Financial Year 2010 2011 2012 2013 2014 2015

Thermal (Pub), 25.60%

Financial Year 2010 2011 2012 2013 2014 2015

IPP`s (Th), 47.26%

1. Guddu Guddu Sindh Steam (425) Gas FO

2. Sukkur Sukkur Sindh 0

Sub Total (GENCO-2) 1927

1. Muzaffargarh Muzaffargarh Punjab Steam (1130) Gas FO

1. Lakhra Coal 1- Lakhra Sindh Steam (30) Coal -

Sub total (GENCO-IV) 30

Sr. No. Title of Power Generation Locations Capacity (MW)

TOTAL CAPACITY BY THERMAL PUBLIC 4677

Sr. No. Title of Power Position/Station Capacity (MW)

1. Major Hydro Units Summer 6,918

2. Major Hydro Units Summer 128

3. Thermal (Public) 4,677

4. Thermal (IPP) 8,649

5. Hydro (IPP`s) 213

Total Capacity 24,842

Hydro Thermal Hydro Thermal Wind Nuclear

%age %age %age %age %age %age

1 Hydro 6,902 0 0 0 0 0 0 6,902

2 Thermal 0 4,946 675 17 150 0 0 5,788

3 IPP 213 5,228 3,629 0 0 650 225 9,976

4 Total 7,115 10,174 4,304 17 150 650 225 22,666

%age %age %age %age %age %age %age GWh

1990 53.9 46.1 31,432

1995 49.6 50.4 46,131

2000 34.5 34.3 31.2 55,873

2005 34.8 30.2 3.1 0.1 31.6 0.2 73,520

2010 31.4 22.1 2.4 0.6 43.2 0.4 88,921

2015 32.3 13.6 5.1 1.1 47.2 0.2 0.5 97,477

Maximum Demand (MW)

 4 projects are currently in progress each of power generation capacity 12 MW in Sindh,

 Difference between collected revenues per year and total spending/expenditures by

 It is responsibility of Government to find ways how to increase revenues as increasing

• China made energy efficacy in their system by the following actions:

 Stress on energy efficiency and conservation of energy especially for industry.

 Coal to liquid and coal to gas,

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