Introduction :
Energy is considered to be life line of any economy and most vital instrument of socioeconomic
development of a country. Energy is pivotal in running machinery in factories and industrial units, for
lighting our cities and powering our vehicles etc.
There has been an enormous increase in the demand of energy as a result of industrial development and
population growth, in comparison to enhancement in energy production. Supply of energy is, therefore,
far less than the actual demand, resultantly crisis has emerged. An energy crisis can be defined as any
great bottleneck (or price rise) in the supply of energy resources to an economy.
Pakistan’s Energy Sector:
Pakistan’s energy infrastructure is not well developed, rather it is considered to be
underdeveloped and poorly managed. Currently the country is facing severe energy crisis.
Despite of strong economic growth and rising energy demand during past decade, no
serious efforts have been made to install new capacity of generation. Moreover, rapid
demand growth, transmission losses due to outdated infrastructure, power theft, and
seasonal reductions in the availability of hydropower have worsened the situation.
Consequently, the demand exceeds supply and hence load-shedding is a common
phenomenon through power shutdown.
2.1 Energy Supply :
During 2009-10, Energy supply and per capita availability of energy witnessed a decline of
0.64 % and 3.09 % respectively in comparison to previous year.
Pakistan needs around 15,000 to 20000 MW electricity per day, however, currently it is able
to produce about 11,500 MW per day hence there is a shortfall of about 4000 to 9000 MW
per day. This shortage is badly hampering the economic growth of the country.
2.2 Energy Consumption :
Pakistan’s energy consumption is met by mix of gas, oil, electricity, coal and LPG sources
with different level of shares. Share of gas consumption stood at 43.7 %, followed by oil
29.0 percent, electricity 15.3 percent, coal 10.4 percent and LPG 1.5 percent.