By Imran Shoukat
Pakistan is currently facing a challenging energy crisis that is adversely affecting industrial and agricultural productivity, disrupting daily life, and hindering economic advancement. Despite possessing an installed energy generation capacity of 42,131 MW as of 2024, the country encounters considerable obstacles, including frequent power outages, a substantial circular debt exceeding PKR 2.5 trillion, and a heavy reliance on expensive imported fuels. With a per ca pita energy consumption of only 478 kWh,Pakistan ranks among the lowest in the region, and approximately 40 million individuals remain with out-access to electricity.
The energy system continues to exhibit inefficiencies and unsustainable, characterized by transmission
losses exceeding 18% and a significant 64.2% of the energy mix still dependent on fossil fuels. It is
imperative that immediate reforms and investments in renewable energy are undertaken to prevent
Pakistan from descending further into an energy crisis.
The energy mix of Pakistan includes a variety of sources, such as nuclear power, hydro-power, fossil
fuels, and renewable energy like solar and wind. The primary sources of electricity generation consist of
coal, gas, and oil, which account for approximately 60% of the nation’s electricity. However, this heavy
reliance on imported fossil fuels renders the country vulnerable to price fluctuations and supply
disruptions.
Hydroelectric power has considerable potential, contributing about 25-30% to Pakistan’s energy mix.
Nevertheless, the efficiency of significant dams such as Tarbela and Mangla is compromised by seasonal
water shortages, despite their essential role in energy production.
Nuclear power plants serve as a dependable energy source with low emissions, representing around
10% of the national grid. Although solar and wind energy currently contribute a small fraction to the
total energy output, emerging initiatives indicate a growing interest in clean energy solutions.
One of the most pressing challenges facing Pakistan is the frequent power outages, particularly in rural
areas. Unscheduled load shedding also affects industrial centers, leading to decreased productivity. The
energy sector is burdened by over PKR 2.5 trillion in escalating circular debt, driven by inefficiencies,
poor bill recovery, and subsidies that strain financial resources.
The country’s electricity generation heavily relies on imported oil and LNG, which is costly and
vulnerable to global fuel price fluctuations. It is estimated that around 18% or more of electricity is lost
due to inefficient infrastructure, a situation exacerbated by theft and outdated grid systems.
Despite having significant potential for solar and wind energy, Pakistan is falling behind in the transition
to greener alternatives due to inconsistent policies and a lack of investment incentives.
To effectively address the energy crisis, Pakistan must adopt a comprehensive strategy. Enhancing
energy security requires a reduction in dependence on fossil fuels through increased investment in
nuclear, hydropower, and renewable energy sources.
The government should promote the establishment of large-scale wind and solar farms by offering tax
incentives and facilitating public-private partnerships to attract investors.
Ensuring reliable distribution and minimizing losses can be achieved through the modernization of the
national grid, reducing electricity theft, and enhancing overall efficiency. Increasing local gas production
and responsibly utilizing indigenous coal resources, particularly Thar coal, can help decrease reliance on
expensive imports.
Promoting energy conservation through industrial upgrades, efficient appliances, and awareness
campaigns can optimize energy consumption.
The financial strain on the power sector can be alleviated through structural reforms, improved bill
collection practices, and a reduction in inefficient subsidies.
The energy challenge in Pakistan is complex, necessitating both immediate and long-term strategic
responses. By implementing a diversified and sustainable energy strategy, modernizing infrastructure,
and encouraging renewable energy initiatives, Pakistan can achieve energy independence and foster
economic growth. Collaboration among the public, private, and governmental sectors will be essential to
ensure the nation’s energy security in the future.
