HAFIZ MUHAMMAD NAEEM

Author is student of LLB (II). He is very hardworking and brilliant student.

ENERGY CRISES IN PAKISTAN

Energy is the most important source for economic growth of a country.

Unfortunately Pakistan has to face a major energy crisis in natural gas, power and oil
in next three to four years. This would hinder the economy of Pakistan. The high cost
of the import of oil, construction of big dams, uncertain regional security environment
coupled with lack of national consensus to build dams are likely to impede quick
resolution of energy crises. This energy deficit will lead to inflation. Similarly
subsidies of billions of rupees have to be doped out “Wapda” to bear loses. This
would affect the national exchequer heavily.

An energy crises is looming large in up coming years. There is an expected short fall
up to fifty percent because of increase in demand and supply gas up to 3,000 MW.
Pakistan’s total energy requirement would increase by 48% to 80 million tones of oil
equivalent in 2010.

Pakistan energy sector comprises of major sources with share of 50.4% of gas,
followed by oil 29%, hydro electricity 11%, and coal 7.6%. Consequently Pakistan
imports energy to overcome the problem and maintain standard of living of people.
The major shortfall is expected in natural gas supplies. Pakistan had 28 trillion cubic
feet reserves of natural gas in 2006 but due to increase in its demand it is expected to
be depleted in next two decades.

Pakistan has a huge demand to generate power through oil but we can meet only 20%
of our requirement through Indigenous production and rest of oil is imported from
Gulf States and other countries of world. No major oil field so for have been
discovered in last three decades. Oil demand is expected to double by 2015 and
quadruple by 2025. This would lead to a staggering trade deficit, and rising of general
prices.

Pakistan has a total hydro potential of 40,000MW against which it generates only
6500 MW. If the dams are not built there would be short fall of 40 million acre feet of
water by the year 2006 and 108 million acre feet by 2013. Consequently power
shortage will be up to 11,750 mkwh per year. It will affect agricultural, industry, and
particularly the storage capacity of Mangla Terbela and Chashma dams will be
reduced due to mud deposits.

Pakistan has world’s seven largest reserves of coal after discovery of THAR. These
reserves are still untouched due to lack of technique in coal mining. Similarly solar
and wind energy in coastal areas of Balouchistan and Sind have a lot of potential to
generate electricity but acquisition of technology at an enormous cost makes this a far
fetched source. Pakistan has only two nuclear plants providing two percent of
electricity to our country. Population explosion is another cause of energy crises.
The government should make strategies to overcome the energy crises. The
government plans to generate 7880 MW electricity by 2010 out of it 4860 MW is to
be generated by firing natural gas. It should maximize the utilization of hydroelectric
resources through building of dams such as KALA BAGH DAM, BHASHA DAM
etc. to produce cheap electricity. It should improve relations with international and
Regional Corporation. It should activate in Thar coal project with the assistance of
china to address energy crises. It should opt new policies to overcome the problem
through renewable energy resources i.e solar, wind and tidal energy.

It should take positive steps to finalize international gas pipe line projects i.e. IPI
(India, Pakistan, Iran) Gas pipe line project which meet the needs of gas demands of
Pakistan and possibly India.

It should make effort to fulfill the project with TURKEMANISTAN and

AFGHANISTAN gas pipe line which was floated by Turkemanistan in 1991 to meet
the demands of gas for Pakistan. Similarly a Sharjah based company initiated and
sponsored a gas import project through an offshore pipe line from QATAR TO
PAKISTAN IN 1990 but it is still under consideration.

Presently Pakistan is pursuing a multi pro-longed strategy to ensure adequate and

uninterrupted oil and gas supply and other energy resources to sustain the present
pattern of energy for the rapid national economic growth. Greater reliance on gas,
aggressive pursuit of hydroelectric power generation, and enhancing nuclear power
generation capacity are some of the key elements of this strategy. Pakistan is also
seeking to expand its primary energy supply base by encouraging oil exploration and
power generation companies to under take energy project in Pakistan. The regional
gas pip line projects in which Pakistan is actively pursuing to meet its expanding
domestic energy demands. These are the pre-requisite for resolving energy crises that,
unless resolved promptly, would cast a long shadow on the short and medium term
objectives of economic growth and development.

BIBLIOGRAPHY
Pakistan’s energy crises. Jan 09 2007, Xinhua English Newswire.
Pakistan’s energy crises by Fazal Hakeem, News 22 Jan 2007.
Pakistan’s energy crises by osama ghani, News 5 Feb 2007.
India, Pakistan, Iran, gas pipe line.
competition intensifies for access to energy resource by Alauddin Masood, News 12
Mar 2007.
IPI GAS PIPE LINE By Nusrat khurshedi, News 12 Feb 2007.
Articale on Kala Bagh Dam.
Pakistan’s energy crises by Fazal Hakeem, News 22 Jan 2007.
Search for alternative energy in full swing by Aamir Kabir, News 12 Mar 2007.
C.s.s forum.
Pakistan’s international Gas Pipe line projects.

HAFIZ NAEEM