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Energy policy of Pakistan

February 16, 2024

The energy policy of Pakistan is formulated and determined by the federal, provincial, and local institutional entities in Pakistan, which address the issues of energy production, distribution, and consumption of energy, such as gas mileage and petroleum standards.[1] Energy policy requires the proper legislation, international treaties, subsidies and incentives to investment, guidelines for energy conservation, taxation and other public policy techniques.

Mangla Dam.
Development of carbon dioxide emissions

Several mandates and proposals have been called over the years to overlook the energy conservation, such as neon signs were banned and the official weekend was extended from one to two days in an attempt to conserve electricity (Gillani, 2010)[2] and reducing the electricity load used by industrial units by 25% during peak hours (Aziz, 2007),[3] but no comprehensive long-term energy strategies were implemented. Since 1999, many legislative provisions were adopted for energy conservation including the seeking energy from various renewable energy sources. There is also an intense criticism about the unequal distribution of energy, the irresponsible usage of energy sources, and the country's new plan which is aimed to raise country's dependence on imported oil for power generation to 50% by 2030.[4] After much public criticism, the long-term energy security policy was announced in 2013 through the introduction of equal cutting-edge energy transmission network, minimising financial losses across the energy system and aligning the ministries involved in the energy sector as well as improving the governance of energy sources.[5]

Studies and policy implementation recommended by AEDB, Water ministry (as policy enforcer), the NEPRA regulates the energy sources network as well as determining the financial prices of the usage of energy. Government-specific energy-efficiency incentive programs also play a significant role in the overall energy policy of Pakistan. As of 2013 Prime Minister Nawaz Sharif has announced a determined and aggressive energy policy to meet the energy challenges and energy management.[5]

Energy authorities and institutions edit

History edit

In the 1960s, a large civilian energy input and infrastructure was built by the Pakistan military, with the financial funds provided by various countries and international monetary sources.[6] In the 1960s, much of the energy was produced by the hydroelectric dams and thermal power stations. In the 1970s, Pakistan's energy consumption expanded to nuclear power sources with the establishment and commissioning of first nuclear power station in Karachi. In the 1980s, the dependence on nuclear sources further grew and the military continued engineering and building the nuclear power infrastructure.

In 1994, Prime Minister Benazir Bhutto of Pakistan Peoples Party (PPP) launched the country's first ever and largest energy conservation program to produce 13,000 MW and issues 70 Memorandum of Understandings (MOUs) and Letters of Intent (LOIs) to Independent Power Producers (IPPs).[7] This 1994 energy policy brought a decisive shift in Pakistan's diverse energy sources.[7] In 1994, out of the total installed capacity of 11000 MW, ~60% of energy was produced from the hydroelectric power sources while nearly ~40% was produced from the thermal and nuclear sources.[7] According to the economic statistics provided by economist, Sartaj Aziz, this mix was reversed from 60:40 to 30:70 in favour of thermal capacity based on imported fuel.[7] Every year, this ratio went down further to 20:80 in winter months as hydropower generation was reduced due to lower water flows in the rivers.[7]

Controversially, the energy policy depended less on renewable energy sources and dependence on imported oil increased that created a permanent fault in country's energy conservation system. By 1995, only 27 IPPs were able to generate ~6,335 MW of electricity.[7] By 1998, the ratio was stabilised by the policies enforced by Prime Minister Nawaz Sharif. 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.[7] In 2012 Pakistan's first wind power installation came online at the FFCEL Wind Energy Project in Jhimpir.[8]

Policy overview edit

Energy policy: 2008–10 edit

In 2005, Prime Minister Shaukat Aziz announced the long-term energy security program which was aimed to the development of the power infrastructure from all energy sources.[9] This policy relied on privatising the energy sector by international mega energy corporations.[10] Controversially, this program was aimed to raise dependence on imported oil from the Arab countries for power generation to be increased by 50.1% by 2013.[10]

In 2006, Prime Minister Aziz held conversation with the officials of the Saudi Ministry of Petroleum and invited Ali Al-Naimi to invest in country's energy sector.[11] In 2007, Prime Minister Aziz allocated ₨. 12.5 billion for power production-related projects which remained unused. In his last policy statement, Prime Minister Aziz further called for banning the Neon lights, Neon signs, and to close the market places by 9 pm; such policy enforcement was harshly resisted by the left-wing parties, such as Pakistan Peoples Party, Communist Party and the labour unions.[12]

Energy Policy: 2010–13 edit

After the general elections held in 2008, the mismanagement and weak policies led to an intense repetitive cycle of loadshedding in the country. Responding to a massive demonstration against the loadshedding and the growing power shortages in the country, Prime Minister, Yousaf Gilani announced the "energy policy" on 22 April 2010.[13]

The policy was announced after the Prime Minister, Gilani had held a three-day national energy conference in Islamabad with energy experts that discussed the causes of the power crisis in Pakistan and possible steps to relieve it.[2] With immediate effect, the gaseous Neon lights and the signs were banned and the official weekend was extended from one to two days in an attempt to conserve electricity.[14] Under this policy, several attempts were made by Gilani government to privatise the energy sector.[15] Devised by the Finance Minister Abdul Hafeez Shaikh, the programme failed to resolve electricity shortage, which private energy companies failed to maintain and upgrade despite being part of their contract.[15] After much criticism and public demonstration in 2012, the PPP government decided to nationalised the energy sector and issued clear directives to regulate the energy corporations to produce the power generations.[16]

Energy Policy: 2013–18 edit

Musadik Masood Malik was appointed Federal Minister, Water and Power of the Pakistan Government in May, 2013.[17] Within two months, he was replaced by Abid Sher Ali who served in the role until the ministry was abolished in September, 2017.[18] In 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.[19]

The 2010 amendment to Pakistan's Constitution (para. 3), empowered each province to formulate the policy framework for the development of public and private sector power generation. This has led to the formation of dedicated provincial departments and empowered public sector companies specialized in renewables to foster and execute power projects through public, private and public–private partnership modes using indigenous power resources.[20]

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.[21] In terms of public sector projects conducted by provincial governments in view of the 2010 amendment, KPK government led with the addition of 1,670 MW to the national grid.[22] It was followed by Sindh and Punjab governments which contributed 935 MW and 580 MW respectively.[23][24] Balochistan government didn't inaugurate any public sector power project during its tenure.[25]

However, despite the massive addition of power to the national grid, glaring issues existed in the power sector. There was no viable overhaul done to the electricity transport infrastructure which lead to episodes of plant tripping and extended blackouts during the summer months.[26] Furthermore, there was still a wide demand and supply gap during high temperature months which led to periodic, planned load-shedding.[27] 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.[28]

Strengthen regional cooperation: 2019-present edit

At the same time as the construction of the China-Pakistan Economic Corridor, Pakistan has strengthened energy cooperation with Russia and Central Asian countries and imported electricity from Iran.[29]

Conservation and consumption edit

Due to rising demand and a failing power infrastructure severe electricity shortages have occurred in Pakistan. This has led to widespread rolling blackouts that have paralysed industry and led to protests and rioting.[13] Power outages can last 6–8 hours a day in the cities and many more in the rural areas.[30] According to Mahnaz Parach of Network for Consumer Protection "Children can't do their homework. Housework doesn't get done, as washing machines and other appliances cannot work. When you go home from work, you have no idea whether there will be electricity at home. Your whole life is disturbed."[31]

Experts have warned of an impending energy crisis since 2006.[32] Speaking at a Seminar 'Fueling the Future: Meeting Pakistan's Energy Needs in the 21st Century' held in Washington, D.C. in June 2006 then energy adviser to the prime minister of Pakistan Mukhtar Ahmed stated that the country was taking steps to address the energy shortage.[33] Pakistan Electric Power Company estimates that there is a shortage of 6 gigawatts or about 60% of its total generation.[34] One of the main reasons of the shortage is thought to be the failure of past governments to anticipate growth in need and the delay in implementation of projects to increase power production. In addition there is widespread power theft and lack of investment in the existing power grid.[35]

The United States has made improving Pakistan's power infrastructure one of its top priorities.[36] US special envoy Richard Holbrooke, while describing the power situation in Pakistan as "unacceptable," has stated that the US would go to its "absolute limits" to help Pakistan overcome the crisis.[37]

Power sources and electrical energy edit

Measures are aimed at cutting consumption by 500 megawatts. The official weekend has been extended from one to two days. Neon signs and decorative lights have been banned. Power has been cut to government offices by 50% and air conditioners will only be allowed to be switched on after 11 am. Street markets have been asked to close early.[13] Commercial centres except drug stores will be closed at 8 pm and wedding celebrations will be limited to three hours. The government will pay off its $1.38 billion debt to power producers allowing them to pay fuel suppliers.[38] Power supply to Pakistan's commercial capital Karachi will be decreased by 300 megawatts to allow fairer distribution of power to the remaining parts of the country.[39] Tube wells will not be allowed to operate from 7 pm to 11 pm.[2] The measures will be reviewed on 30 July 2010.[40]

Consumption by computers edit

Main articles: Computing in Pakistan and Green computing

Since the early 1990s, the country has observed the highest growth rate in usage of computers that effect the supply of the electricity produced in the system.[41] In a survey published by the Express Tribune, around ~30 million citizens (out of 180 million), uses the internet on daily basis; the internet penetration in the country has reached 16% as of 2013.[42]

Variations by regions edit

In the days following the announcement, traders in Lahore rejected the government's decision and kept the markets open after 8 pm in defiance of the ban.[43] Shops were kept open in other cities also after 8 pm. Kashif Shabbir, president of the Rawalpindi Chamber of Commerce warned the situation would get worse if authorities used force to implement the decision.[44] There was confusion over implementation of the two-day weekend, and many banks and educational institutions remained open.[45] Commenting on the defiant mood of the traders, an editorial in Dawn urged everybody to find middle ground.[46]

Reacting to the decision to curtail power supply to Karachi, the "City of Lights", leaders of various political parties in the Provincial Assembly of Sindh condemned the decision and some of them called it "a conspiracy to create a law and order situation." Former Nazim of Karachi, Naimatullah Khan warned that curtailing the power supply of the city could lead to street battles between protesters and law enforcement.[47]

Some analysts have predicted that reduction in the banks' workweek to 5 days will result in revenue losses.[48]

The prevailing energy crisis in Pakistan is taking away 2 percent (or Rs 380 billion) of the economy, despite the government has spent Rs 1.1 trillion as subsidies on the sector in the last four-year which accounts for 2.5 percent of the total volume of economy.[49]

During June 2012, President Asif Ali Zardari had said that the government realised the enormity of the challenge of energy shortage and was determined to overcome it in the shortest possible time.[50]

International co-operation edit

Pakistan is already importing small quantity of electricity from Iran to supply power to Gwadar town. Pakistan is also actively considering to import electricity from India and Tajikistan. World Bank offered to finance for conducting the feasibility study to import 1200 MW power from India.[51][52]

Pakistan is also exploring to import PNG via pipe line through Wagha border from India. India would import the required LNG and re-gasified LNG (RLNG) would be pumped through its pipelines up to the border point.[53] Iran–Pakistan gas pipeline is pending for a long time to receive PNG from Iran for the needs of both Pakistan and India.[54] However, due to the sharp deterioration in India-Pakistan relations, the pipeline is currently changed to be used only by Iran and Pakistan.

Pakistan started importing discounted Russian oil in June 2023 to prevent energy price hikes caused by the economic crisis. The 100,000 bpd of Russian oil imported accounts for two-thirds of Pakistan's daily consumption.[55]

See also edit

References edit

  1. ^ Staff (1 August 2013). "CCI approves National Energy Policy". Pakistan Today. Retrieved 30 August 2013.
  2. ^ a b c . Geo TV. 22 April 2010. Archived from the original on 28 April 2010. Retrieved 23 April 2010.
  3. ^ Staff (12 May 2007). "Shaukat and Jatoi take up energy policy". AAJ News Archives. Retrieved 30 August 2013.
  4. ^ Syed Mohibullah Shah (8 October 2011). . The News International, 2008. Archived from the original on 16 June 2013. Retrieved 30 August 2013.
  5. ^ a b Bhatti, Sohail (22 July 2013). "Ambitious' national energy policy formulated". Dawn News, 2013. Retrieved 30 August 2013.
  6. ^ "PAKISTAN ARMY". www.pakistanarmy.gov.pk. Retrieved 9 April 2022.
  7. ^ a b c d e f g Aziz, Sartaj (23 April 2013). "Who is responsible?". Pakistan Today, April 2013. Retrieved 30 August 2013.
  8. ^ "50 MW wind power project connected to national grid". nation.com.pk. Retrieved 23 April 2018.
  9. ^ Muralidhar Reddy (8 March 2005). . The Hindu. Archived from the original on 4 March 2006. Retrieved 18 November 2013.
  10. ^ a b Syed Mohibullah Shah (8 October 2011). "Energised, yet powerless". The News International, 2011. Retrieved 18 November 2013.
  11. ^ APP (7 November 2006). "Saudi investment invited in energy, mining sectors". The Dawn News, areastudies. Retrieved 18 November 2013.
  12. ^ Staff. "Traders agree to close markets at 9 pm". Labour Unity Org. Labour Unity Org. Archived from the original on 20 October 2013. Retrieved 18 November 2013.
  13. ^ a b c "Pakistan's PM announces energy policy to tackle crisis". BBC. 22 April 2010. Retrieved 22 April 2010.
  14. ^ Tavernise, Sabrina (26 April 2010). "Pakistanis Living on Brink, and Often in the Dark". The New York Times. Retrieved 28 April 2010.
  15. ^ a b . Prime Minister's Inspection Commission. 2013. Archived from the original on 14 July 2014. Retrieved 3 July 2014.
  16. ^ Amin, Mohd. Ramiz. "Nationalization and Privatization in Pakistan". Nationalization and Privatization in Pakistan. Archived from the original on 11 June 2014. Retrieved 3 July 2014.
  17. ^ "A caretaker minister makes his way into real cabinet". Thenews.com.pk. Retrieved 13 February 2014.
  18. ^ "PML-N's Abid Sher Ali appointed as new state minister for power". The Express Tribune. 22 July 2013.
  19. ^ "Awais Leghari made Minister of Power Division". Business Recorder. 6 October 2017.
  20. ^ Asian Development Bank, Access to Clean Energy Investment Program: Summary Sector Assessment: Energy, p.2
  21. ^ "PML-N govt added 10,973 MW electricity to system, NA told". Pakistan Today. Retrieved 27 May 2018.
  22. ^ "PTI claims govt only added 1,670 MW to the power grid - The Express Tribune". The Express Tribune. 24 March 2018. Retrieved 27 May 2018.
  23. ^ "Sindh contributes 935 MW wind energy in national grid: CM". Pakistan Today. Retrieved 27 May 2018.
  24. ^ "[Initiatives] Energy Department, Govt. of the Punjab, Pakistan". www.energy.punjab.gov.pk. Retrieved 27 May 2018.
  25. ^ Baloch, Sanaullah (29 January 2018). "No energy for Balochistan". The News International.
  26. ^ "Parts of Punjab, KP hit by massive power breakdown". Dawn. 16 May 2018. Retrieved 27 May 2018.
  27. ^ . 4 June 2018. Archived from the original on 5 June 2018. Retrieved 5 June 2018.
  28. ^ Kiani, Khaleeq (2 March 2018). "Energy sector circular debt touches record Rs922bn". Dawn. Retrieved 27 May 2018.
  29. ^ Guo, Fei-fei; Huang, Cheng-feng; Wu, Xiao-ling (1 November 2019). "Strategic analysis on the construction of new energy corridor China–Pakistan–Iran–Turkey". Energy Reports. 5: 828–841. doi:10.1016/j.egyr.2019.06.007. hdl:10419/243631. ISSN 2352-4847.
  30. ^ . Khaleej Times. 22 April 2010. Archived from the original on 8 June 2011. Retrieved 22 April 2010.
  31. ^ Shah, Saeed (21 April 2010). "Pakistan to impose wedding curfew as power shortages cause civil unrest". The Guardian. London. Retrieved 23 April 2010.
  32. ^ . Dawn. 29 July 2006. Archived from the original on 9 April 2009. Retrieved 24 April 2010.
  33. ^ . Dawn. 24 June 2006. Archived from the original on 25 July 2008. Retrieved 24 April 2010.
  34. ^ "Electricity shortfall reaches 6,000 MW". Dawn. 18 April 2010. Retrieved 23 April 2010.
  35. ^ "Crisis talks as power shortages hit Pakistan industry". Reuters. 22 April 2010. Retrieved 22 April 2010.
  36. ^ . Forbes. 22 April 2010. Archived from the original on 3 May 2010. Retrieved 22 April 2010.
  37. ^ "US to help Pakistan tide over energy crisis". Dawn. 20 April 2010. Retrieved 24 April 2010.
  38. ^ . Bloomberg Businessweek. 22 April 2010. Archived from the original on 25 April 2010. Retrieved 22 April 2010.
  39. ^ "Gilani vows to reduce load-shedding". Dawn. 23 April 2010. Retrieved 22 April 2010.
  40. ^ "Energy conservation strategy announced". The News International. 23 April 2010. Retrieved 23 April 2010.
  41. ^ "Computers and its Usage in Pakistan". Pakistan Telecommunications. 3 December 2008. Retrieved 3 July 2014.
  42. ^ websedk (24 June 2013). "30m internet users in Pakistan, half on mobile: Report". Express Tribune. Retrieved 3 July 2014.
  43. ^ "Traders defy order of markets' closure". Dawn. 23 April 2010. Retrieved 23 April 2010.
  44. ^ "Traders reject Malik's warning, refuse to close shops at 8 pm". Dawn. 24 April 2010. Retrieved 24 April 2010.
  45. ^ "Two holidays: confusion over implementation". The News International. 24 April 2010. Retrieved 24 April 2010.[permanent dead link]
  46. ^ "Traders' defiance". Dawn. 25 April 2010. Retrieved 25 April 2010.
  47. ^ "Karachi lights being turned off to overcome energy crisis". Dawn. Retrieved 24 April 2010.
  48. ^ "Two-day weekend to hurt banks' earnings". The News International. 25 April 2010. Retrieved 25 April 2010.[permanent dead link]
  49. ^ Economic cost of energy crisis estimated at Rs380bn, The News, 1 June 2012
  50. ^ Disengagement not an option: President Zardari 2 June 2012 at the Wayback Machine, Geo News, 1 June 2012
  51. ^ (PDF). 2014. Archived from the original (PDF) on 30 June 2014. Retrieved 17 August 2014.
  52. ^ "Adani mulls exporting electricity to Pakistan". 2014. Retrieved 17 August 2014.
  53. ^ (PDF). Archived from the original (PDF) on 30 June 2014. Retrieved 17 August 2014.
  54. ^ "India-Pakistan-Iran pipeline remains the most viable option". 2014. Retrieved 17 August 2014.
  55. ^ Kugelman, Michael (14 June 2023). "Russian Oil Shipment Arrives in Pakistan". Foreign Policy. Retrieved 15 June 2023.

External links edit

  • Video: Pakistan's Power Crisis, The New York Times, 26 April 2010
  • Video: Power cuts anger Pakistan traders, Al Jazeera English, 22 April 2010
  • MEPCO Bill By power information technology company PITC
  • Multan Electric Power Information Technology
  • Multan MEPCO Bill Information


February 16, 2024
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The energy policy of Pakistan is formulated and determined by the federal provincial and local institutional entities in Pakistan which address the issues of energy production distribution and consumption of energy such as gas mileage and petroleum standards 1 Energy policy requires the proper legislation international treaties subsidies and incentives to investment guidelines for energy conservation taxation and other public policy techniques Mangla Dam Development of carbon dioxide emissionsSeveral mandates and proposals have been called over the years to overlook the energy conservation such as neon signs were banned and the official weekend was extended from one to two days in an attempt to conserve electricity Gillani 2010 2 and reducing the electricity load used by industrial units by 25 during peak hours Aziz 2007 3 but no comprehensive long term energy strategies were implemented Since 1999 many legislative provisions were adopted for energy conservation including the seeking energy from various renewable energy sources There is also an intense criticism about the unequal distribution of energy the irresponsible usage of energy sources and the country s new plan which is aimed to raise country s dependence on imported oil for power generation to 50 by 2030 4 After much public criticism the long term energy security policy was announced in 2013 through the introduction of equal cutting edge energy transmission network minimising financial losses across the energy system and aligning the ministries involved in the energy sector as well as improving the governance of energy sources 5 Studies and policy implementation recommended by AEDB Water ministry as policy enforcer the NEPRA regulates the energy sources network as well as determining the financial prices of the usage of energy Government specific energy efficiency incentive programs also play a significant role in the overall energy policy of Pakistan As of 2013 Prime Minister Nawaz Sharif has announced a determined and aggressive energy policy to meet the energy challenges and energy management 5 Contents 1 Energy authorities and institutions 2 History 3 Policy overview 3 1 Energy policy 2008 10 3 2 Energy Policy 2010 13 3 3 Energy Policy 2013 18 3 4 Strengthen regional cooperation 2019 present 4 Conservation and consumption 4 1 Power sources and electrical energy 4 2 Consumption by computers 4 3 Variations by regions 5 International co operation 6 See also 7 References 8 External linksEnergy authorities and institutions editGovernment of Pakistan Ministry of Water and Power Private Power amp Infrastructure Board Alternative Energy Development Board Industrial energy sector Electricity sector in Pakistan Energy and power regulatory authorities Water and Power Development Authority National Electric Power Regulatory Authority Energy corporations Electricity and energy corporations in Pakistan Karachi ElectricHistory editIn the 1960s a large civilian energy input and infrastructure was built by the Pakistan military with the financial funds provided by various countries and international monetary sources 6 In the 1960s much of the energy was produced by the hydroelectric dams and thermal power stations In the 1970s Pakistan s energy consumption expanded to nuclear power sources with the establishment and commissioning of first nuclear power station in Karachi In the 1980s the dependence on nuclear sources further grew and the military continued engineering and building the nuclear power infrastructure In 1994 Prime Minister Benazir Bhutto of Pakistan Peoples Party PPP launched the country s first ever and largest energy conservation program to produce 13 000 MW and issues 70 Memorandum of Understandings MOUs and Letters of Intent LOIs to Independent Power Producers IPPs 7 This 1994 energy policy brought a decisive shift in Pakistan s diverse energy sources 7 In 1994 out of the total installed capacity of 11000 MW 60 of energy was produced from the hydroelectric power sources while nearly 40 was produced from the thermal and nuclear sources 7 According to the economic statistics provided by economist Sartaj Aziz this mix was reversed from 60 40 to 30 70 in favour of thermal capacity based on imported fuel 7 Every year this ratio went down further to 20 80 in winter months as hydropower generation was reduced due to lower water flows in the rivers 7 Controversially the energy policy depended less on renewable energy sources and dependence on imported oil increased that created a permanent fault in country s energy conservation system By 1995 only 27 IPPs were able to generate 6 335 MW of electricity 7 By 1998 the ratio was stabilised by the policies enforced by Prime Minister Nawaz Sharif 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 7 In 2012 Pakistan s first wind power installation came online at the FFCEL Wind Energy Project in Jhimpir 8 Policy overview editEnergy policy 2008 10 edit In 2005 Prime Minister Shaukat Aziz announced the long term energy security program which was aimed to the development of the power infrastructure from all energy sources 9 This policy relied on privatising the energy sector by international mega energy corporations 10 Controversially this program was aimed to raise dependence on imported oil from the Arab countries for power generation to be increased by 50 1 by 2013 10 In 2006 Prime Minister Aziz held conversation with the officials of the Saudi Ministry of Petroleum and invited Ali Al Naimi to invest in country s energy sector 11 In 2007 Prime Minister Aziz allocated 12 5 billion for power production related projects which remained unused In his last policy statement Prime Minister Aziz further called for banning the Neon lights Neon signs and to close the market places by 9 pm such policy enforcement was harshly resisted by the left wing parties such as Pakistan Peoples Party Communist Party and the labour unions 12 Energy Policy 2010 13 edit After the general elections held in 2008 the mismanagement and weak policies led to an intense repetitive cycle of loadshedding in the country Responding to a massive demonstration against the loadshedding and the growing power shortages in the country Prime Minister Yousaf Gilani announced the energy policy on 22 April 2010 13 The policy was announced after the Prime Minister Gilani had held a three day national energy conference in Islamabad with energy experts that discussed the causes of the power crisis in Pakistan and possible steps to relieve it 2 With immediate effect the gaseous Neon lights and the signs were banned and the official weekend was extended from one to two days in an attempt to conserve electricity 14 Under this policy several attempts were made by Gilani government to privatise the energy sector 15 Devised by the Finance Minister Abdul Hafeez Shaikh the programme failed to resolve electricity shortage which private energy companies failed to maintain and upgrade despite being part of their contract 15 After much criticism and public demonstration in 2012 the PPP government decided to nationalised the energy sector and issued clear directives to regulate the energy corporations to produce the power generations 16 Energy Policy 2013 18 edit Musadik Masood Malik was appointed Federal Minister Water and Power of the Pakistan Government in May 2013 17 Within two months he was replaced by Abid Sher Ali who served in the role until the ministry was abolished in September 2017 18 In 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 19 The 2010 amendment to Pakistan s Constitution para 3 empowered each province to formulate the policy framework for the development of public and private sector power generation This has led to the formation of dedicated provincial departments and empowered public sector companies specialized in renewables to foster and execute power projects through public private and public private partnership modes using indigenous power resources 20 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 21 In terms of public sector projects conducted by provincial governments in view of the 2010 amendment KPK government led with the addition of 1 670 MW to the national grid 22 It was followed by Sindh and Punjab governments which contributed 935 MW and 580 MW respectively 23 24 Balochistan government didn t inaugurate any public sector power project during its tenure 25 However despite the massive addition of power to the national grid glaring issues existed in the power sector There was no viable overhaul done to the electricity transport infrastructure which lead to episodes of plant tripping and extended blackouts during the summer months 26 Furthermore there was still a wide demand and supply gap during high temperature months which led to periodic planned load shedding 27 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 28 Strengthen regional cooperation 2019 present edit At the same time as the construction of the China Pakistan Economic Corridor Pakistan has strengthened energy cooperation with Russia and Central Asian countries and imported electricity from Iran 29 Conservation and consumption editDue to rising demand and a failing power infrastructure severe electricity shortages have occurred in Pakistan This has led to widespread rolling blackouts that have paralysed industry and led to protests and rioting 13 Power outages can last 6 8 hours a day in the cities and many more in the rural areas 30 According to Mahnaz Parach of Network for Consumer Protection Children can t do their homework Housework doesn t get done as washing machines and other appliances cannot work When you go home from work you have no idea whether there will be electricity at home Your whole life is disturbed 31 Experts have warned of an impending energy crisis since 2006 32 Speaking at a Seminar Fueling the Future Meeting Pakistan s Energy Needs in the 21st Century held in Washington D C in June 2006 then energy adviser to the prime minister of Pakistan Mukhtar Ahmed stated that the country was taking steps to address the energy shortage 33 Pakistan Electric Power Company estimates that there is a shortage of 6 gigawatts or about 60 of its total generation 34 One of the main reasons of the shortage is thought to be the failure of past governments to anticipate growth in need and the delay in implementation of projects to increase power production In addition there is widespread power theft and lack of investment in the existing power grid 35 The United States has made improving Pakistan s power infrastructure one of its top priorities 36 US special envoy Richard Holbrooke while describing the power situation in Pakistan as unacceptable has stated that the US would go to its absolute limits to help Pakistan overcome the crisis 37 Power sources and electrical energy edit Measures are aimed at cutting consumption by 500 megawatts The official weekend has been extended from one to two days Neon signs and decorative lights have been banned Power has been cut to government offices by 50 and air conditioners will only be allowed to be switched on after 11 am Street markets have been asked to close early 13 Commercial centres except drug stores will be closed at 8 pm and wedding celebrations will be limited to three hours The government will pay off its 1 38 billion debt to power producers allowing them to pay fuel suppliers 38 Power supply to Pakistan s commercial capital Karachi will be decreased by 300 megawatts to allow fairer distribution of power to the remaining parts of the country 39 Tube wells will not be allowed to operate from 7 pm to 11 pm 2 The measures will be reviewed on 30 July 2010 40 Consumption by computers edit Main articles Computing in Pakistan and Green computing Since the early 1990s the country has observed the highest growth rate in usage of computers that effect the supply of the electricity produced in the system 41 In a survey published by the Express Tribune around 30 million citizens out of 180 million uses the internet on daily basis the internet penetration in the country has reached 16 as of 2013 42 Variations by regions edit In the days following the announcement traders in Lahore rejected the government s decision and kept the markets open after 8 pm in defiance of the ban 43 Shops were kept open in other cities also after 8 pm Kashif Shabbir president of the Rawalpindi Chamber of Commerce warned the situation would get worse if authorities used force to implement the decision 44 There was confusion over implementation of the two day weekend and many banks and educational institutions remained open 45 Commenting on the defiant mood of the traders an editorial in Dawn urged everybody to find middle ground 46 Reacting to the decision to curtail power supply to Karachi the City of Lights leaders of various political parties in the Provincial Assembly of Sindh condemned the decision and some of them called it a conspiracy to create a law and order situation Former Nazim of Karachi Naimatullah Khan warned that curtailing the power supply of the city could lead to street battles between protesters and law enforcement 47 Some analysts have predicted that reduction in the banks workweek to 5 days will result in revenue losses 48 The prevailing energy crisis in Pakistan is taking away 2 percent or Rs 380 billion of the economy despite the government has spent Rs 1 1 trillion as subsidies on the sector in the last four year which accounts for 2 5 percent of the total volume of economy 49 During June 2012 President Asif Ali Zardari had said that the government realised the enormity of the challenge of energy shortage and was determined to overcome it in the shortest possible time 50 International co operation editPakistan is already importing small quantity of electricity from Iran to supply power to Gwadar town Pakistan is also actively considering to import electricity from India and Tajikistan World Bank offered to finance for conducting the feasibility study to import 1200 MW power from India 51 52 Pakistan is also exploring to import PNG via pipe line through Wagha border from India India would import the required LNG and re gasified LNG RLNG would be pumped through its pipelines up to the border point 53 Iran Pakistan gas pipeline is pending for a long time to receive PNG from Iran for the needs of both Pakistan and India 54 However due to the sharp deterioration in India Pakistan relations the pipeline is currently changed to be used only by Iran and Pakistan Pakistan started importing discounted Russian oil in June 2023 to prevent energy price hikes caused by the economic crisis The 100 000 bpd of Russian oil imported accounts for two thirds of Pakistan s daily consumption 55 See also edit nbsp Pakistan portal nbsp Energy portalEffects of global warming on South Asia Electricity sector in Pakistan Energy crisisReferences edit Staff 1 August 2013 CCI approves National Energy Policy Pakistan Today Retrieved 30 August 2013 a b c Steps taken to tackle energy crisis Geo TV 22 April 2010 Archived from the original on 28 April 2010 Retrieved 23 April 2010 Staff 12 May 2007 Shaukat and Jatoi take up energy policy AAJ News Archives Retrieved 30 August 2013 Syed Mohibullah Shah 8 October 2011 Energized yet powerless The News International 2008 Archived from the original on 16 June 2013 Retrieved 30 August 2013 a b Bhatti Sohail 22 July 2013 Ambitious national energy policy formulated Dawn News 2013 Retrieved 30 August 2013 PAKISTAN ARMY www pakistanarmy gov pk Retrieved 9 April 2022 a b c d e f g Aziz Sartaj 23 April 2013 Who is responsible Pakistan Today April 2013 Retrieved 30 August 2013 50 MW wind power project connected to national grid nation com pk Retrieved 23 April 2018 Muralidhar Reddy 8 March 2005 We will oppose domination of Indian Ocean Shaukat Aziz The Hindu Archived from the original on 4 March 2006 Retrieved 18 November 2013 a b Syed Mohibullah Shah 8 October 2011 Energised yet powerless The News International 2011 Retrieved 18 November 2013 APP 7 November 2006 Saudi investment invited in energy mining sectors The Dawn News areastudies Retrieved 18 November 2013 Staff Traders agree to close markets at 9 pm Labour Unity Org Labour Unity Org Archived from the original on 20 October 2013 Retrieved 18 November 2013 a b c Pakistan s PM announces energy policy to tackle crisis BBC 22 April 2010 Retrieved 22 April 2010 Tavernise Sabrina 26 April 2010 Pakistanis Living on Brink and Often in the Dark The New York Times Retrieved 28 April 2010 a b Effects of Power Sector Reforms Prime Minister s Inspection Commission 2013 Archived from the original on 14 July 2014 Retrieved 3 July 2014 Amin Mohd Ramiz Nationalization and Privatization in Pakistan Nationalization and Privatization in Pakistan Archived from the original on 11 June 2014 Retrieved 3 July 2014 A caretaker minister makes his way into real cabinet Thenews com pk Retrieved 13 February 2014 PML N s Abid Sher Ali appointed as new state minister for power The Express Tribune 22 July 2013 Awais Leghari made Minister of Power Division Business Recorder 6 October 2017 Asian Development Bank Access to Clean Energy Investment Program Summary Sector Assessment Energy p 2 PML N govt added 10 973 MW electricity to system NA told Pakistan Today Retrieved 27 May 2018 PTI claims govt only added 1 670 MW to the power grid The Express Tribune The Express Tribune 24 March 2018 Retrieved 27 May 2018 Sindh contributes 935 MW wind energy in national grid CM Pakistan Today Retrieved 27 May 2018 Initiatives Energy Department Govt of the Punjab Pakistan www energy punjab gov pk Retrieved 27 May 2018 Baloch Sanaullah 29 January 2018 No energy for Balochistan The News International Parts of Punjab KP hit by massive power breakdown Dawn 16 May 2018 Retrieved 27 May 2018 Daily Power Position 4 June 2018 Archived from the original on 5 June 2018 Retrieved 5 June 2018 Kiani Khaleeq 2 March 2018 Energy sector circular debt touches record Rs922bn Dawn Retrieved 27 May 2018 Guo Fei fei Huang Cheng feng Wu Xiao ling 1 November 2019 Strategic analysis on the construction of new energy corridor China Pakistan Iran Turkey Energy Reports 5 828 841 doi 10 1016 j egyr 2019 06 007 hdl 10419 243631 ISSN 2352 4847 Pakistan turns off lights to end energy crisis Khaleej Times 22 April 2010 Archived from the original on 8 June 2011 Retrieved 22 April 2010 Shah Saeed 21 April 2010 Pakistan to impose wedding curfew as power shortages cause civil unrest The Guardian London Retrieved 23 April 2010 Major energy crisis feared Dawn 29 July 2006 Archived from the original on 9 April 2009 Retrieved 24 April 2010 Pakistan needs to tackle energy crisis Dawn 24 June 2006 Archived from the original on 25 July 2008 Retrieved 24 April 2010 Electricity shortfall reaches 6 000 MW Dawn 18 April 2010 Retrieved 23 April 2010 Crisis talks as power shortages hit Pakistan industry Reuters 22 April 2010 Retrieved 22 April 2010 Pakistan announces measures to save energy Forbes 22 April 2010 Archived from the original on 3 May 2010 Retrieved 22 April 2010 US to help Pakistan tide over energy crisis Dawn 20 April 2010 Retrieved 24 April 2010 Pakistan War on Power Deficit to Shut Offices Ban Neon Signs Bloomberg Businessweek 22 April 2010 Archived from the original on 25 April 2010 Retrieved 22 April 2010 Gilani vows to reduce load shedding Dawn 23 April 2010 Retrieved 22 April 2010 Energy conservation strategy announced The News International 23 April 2010 Retrieved 23 April 2010 Computers and its Usage in Pakistan Pakistan Telecommunications 3 December 2008 Retrieved 3 July 2014 websedk 24 June 2013 30m internet users in Pakistan half on mobile Report Express Tribune Retrieved 3 July 2014 Traders defy order of markets closure Dawn 23 April 2010 Retrieved 23 April 2010 Traders reject Malik s warning refuse to close shops at 8 pm Dawn 24 April 2010 Retrieved 24 April 2010 Two holidays confusion over implementation The News International 24 April 2010 Retrieved 24 April 2010 permanent dead link Traders defiance Dawn 25 April 2010 Retrieved 25 April 2010 Karachi lights being turned off to overcome energy crisis Dawn Retrieved 24 April 2010 Two day weekend to hurt banks earnings The News International 25 April 2010 Retrieved 25 April 2010 permanent dead link Economic cost of energy crisis estimated at Rs380bn The News 1 June 2012 Disengagement not an option President Zardari Archived 2 June 2012 at the Wayback Machine Geo News 1 June 2012 Pakistan all set to import electricity from India PDF 2014 Archived from the original PDF on 30 June 2014 Retrieved 17 August 2014 Adani mulls exporting electricity to Pakistan 2014 Retrieved 17 August 2014 India Pakistan may shake hands on electricity hydrocarbons PDF Archived from the original PDF on 30 June 2014 Retrieved 17 August 2014 India Pakistan Iran pipeline remains the most viable option 2014 Retrieved 17 August 2014 Kugelman Michael 14 June 2023 Russian Oil Shipment Arrives in Pakistan Foreign Policy Retrieved 15 June 2023 External links editVideo Pakistan s Power Crisis The New York Times 26 April 2010 Video Power cuts anger Pakistan traders Al Jazeera English 22 April 2010 Energy crisis in Pakistan in Pictures PowerSave pk Awareness Campaign by PEPCO MEPCO Bill By power information technology company PITC Multan Electric Power Information Technology Multan MEPCO Bill Information Retrieved from https en wikipedia org w index php title Energy policy of Pakistan amp oldid 1206140706, wikipedia, wiki, book, books, library,

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