Pakistan Faces Severe Energy Crisis Amid Surging Demand and Dwindling Supply

Pakistan is grappling with a severe energy crisis due to a growing gap between demand and supply. With a heavy reliance on non-renewable fossil fuels and outdated infrastructure, the nation faces rising power costs and the need for substantial policy reforms and investment in renewable energy sources.

Pakistan is facing a critical energy crisis as rising demand far outstrips the supply of conventional energy sources, leading to surging power costs and increased reliance on imports, according to Geo News. In October 2023 alone, the country had an energy deficit of 6,000 megawatts, resulting in an import bill of USD 7 billion. The National Electric Power Regulatory Authority's (Nepra) 2022 annual report reveals Pakistan's installed generation capacity is 43,775 MW, with just 7% from renewable energy sources.

Addressing this crisis requires strategic investments in renewable energy infrastructure and comprehensive policy reforms to ensure a sustainable energy supply for the future. The origins of Pakistan's energy crisis trace back to the 1970s, when initial hydro projects like Mangla and Tarbela dams temporarily boosted the nation's energy capacity. However, surging demand in the 1980s outpaced government attempts at increasing generation capacity.

Pakistan's reliance on non-renewable fossil fuels, making up 59% of its energy mix, exacerbates the crisis, compounded by outdated infrastructure and issues like line losses and power theft. According to a World Bank report, energy demand in Pakistan is projected to grow by 70% by 2030, with supply expected to rise by only 45%. Diversifying the energy mix, upgrading transmission infrastructure, and addressing inefficiencies within generation and distribution companies are essential steps. PML-N patron Nawaz Sharif has urged the administration led by Shehbaz Sharif to take decisive actions to provide relief to the masses.

(With inputs from agencies.)