Pakistan national energy policy
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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.
Energy policy Energy policy is the manner in which a given entity (often governmental) has decided to address issues of energy development including energy conversion, distribution and use as well as reduction of greenhouse gas emissions in order to contri ...
requires the proper legislation, international treaties, subsidies and incentives to investment, guidelines for
energy conservation Energy conservation is the effort to reduce wasteful energy consumption by using fewer energy services. This can be done by using energy more effectively (using less energy for continuous service) or changing one's behavior to use less service (f ...
, taxation and other public policy techniques. Several mandates and proposals have been called over the years to overlook the energy conservation, such as
neon signs In the signage industry, neon signs are electric signs lighted by long luminous gas-discharge tubes that contain rarefied neon or other gases. They are the most common use for neon lighting, which was first demonstrated in a modern form in Dece ...
were banned and the official weekend was extended from one to two days in an attempt to conserve electricity ( Gillani, 2010) and reducing the electricity load used by industrial units by 25% during peak hours ( Aziz, 2007), but no comprehensive long-term energy strategies were implemented. Since 1999, many legislative provisions were adopted for
energy conservation Energy conservation is the effort to reduce wasteful energy consumption by using fewer energy services. This can be done by using energy more effectively (using less energy for continuous service) or changing one's behavior to use less service (f ...
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. 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. 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.


Energy authorities and institutions

* Government of Pakistan ** Ministry of Water and Power ** Private Power & Infrastructure Board ** Alternative Energy Development Board *Industrial energy sector ** Electricity sector in Pakistan ** Electricity in Pakistan *Energy and power regulatory authorities **
Water and Power Development Authority The Pakistan Water & Power Development Authority (WAPDA; ur, ) is a government-owned public utility maintaining power and water in Pakistan, although it does not manage thermal power. WAPDA includes Tarbela and Mangla dams among its resources. ...
** National Electric Power Regulatory Authority *Energy corporations ** Electricity and energy corporations in Pakistan *
Karachi Electric Electric (KE) ( ur, ) (formerly known as Karachi Electric Supply Company / Karachi Electric Supply Corporation Limited) is a Pakistani investor-owned utility company based in Karachi. K-Electric is a privately owned and vertically-integrated e ...


History

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. 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 First or 1st is the ordinal form of the number one (#1). First or 1st may also refer to: *World record, specifically the first instance of a particular achievement Arts and media Music * 1$T, American rapper, singer-songwriter, DJ, and rec ...
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 Benazir Bhutto ( ur, بینظیر بُھٹو; sd, بينظير ڀُٽو; Urdu ; 21 June 1953 – 27 December 2007) was a Pakistani politician who served as the 11th and 13th prime minister of Pakistan from 1988 to 1990 and again from 1993 t ...
of
Pakistan Peoples Party The Pakistan People's Party ( ur, , ; PPP) is a centre-left, social-democratic political party in Pakistan. It is currently the third largest party in the National Assembly and second largest in the Senate of Pakistan. The party was founded ...
(PPP) launched the country's first ever and largest
energy conservation Energy conservation is the effort to reduce wasteful energy consumption by using fewer energy services. This can be done by using energy more effectively (using less energy for continuous service) or changing one's behavior to use less service (f ...
program to produce 13,000  MW and issues 70 Memorandum of Understandings (MOUs) and Letters of Intent (LOIs) to Independent Power Producers (IPPs). This 1994 energy policy brought a decisive shift in Pakistan's diverse energy sources. In 1994, out of the total installed capacity of 11000 MW, ~60% of energy was produced from the
hydroelectric Hydroelectricity, or hydroelectric power, is electricity generated from hydropower (water power). Hydropower supplies one sixth of the world's electricity, almost 4500 TWh in 2020, which is more than all other renewable sources combined and ...
power sources while nearly ~40% was produced from the thermal and nuclear sources. According to the economic statistics provided by economist,
Sartaj Aziz Sartaj Aziz ( ur, ; born 7 February 1929) is a Pakistani economist and a strategist, having previously served as the deputy chairman of the Planning Commission of Pakistan, member of the federal cabinet as the ''de facto'' Minister for Forei ...
, this mix was reversed from 60:40 to 30:70 in favour of thermal capacity based on imported fuel. 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. 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 Energy conservation is the effort to reduce wasteful energy consumption by using fewer energy services. This can be done by using energy more effectively (using less energy for continuous service) or changing one's behavior to use less service (f ...
system. By 1995, only 27 IPPs were able to generate ~6,335 MW of electricity. By 1998, the ratio was stabilised by the policies enforced by Prime Minister Nawaz Sharif. In 2001, the
military government A military government is generally any form of government that is administered by military forces, whether or not this government is legal under the laws of the jurisdiction at issue, and whether this government is formed by natives or by an occup ...
led by President Pervez Musharraf and Prime Minister
Shaukat Aziz Shaukat Aziz ( ur, ; born 6 March 1949) is a Pakistani former banker and financier who served as 17th prime minister of Pakistan from 28 August 2004 to 15 November 2007, as well as the finance minister of Pakistan from 6 November 1999 to 15 ...
, 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. In 2012 Pakistan's first wind power installation came online at the FFCEL Wind Energy Project in Jhimpir.


Policy overview


Energy policy: 2008–10

In 2005, Prime Minister
Shaukat Aziz Shaukat Aziz ( ur, ; born 6 March 1949) is a Pakistani former banker and financier who served as 17th prime minister of Pakistan from 28 August 2004 to 15 November 2007, as well as the finance minister of Pakistan from 6 November 1999 to 15 ...
announced the long-term energy security program which was aimed to the development of the power infrastructure from all energy sources. This policy relied on privatising the energy sector by international mega energy corporations. 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. In 2006, Prime Minister Aziz held conversation with the officials of the
Saudi Saudi may refer to: * Saudi Arabia * Saudis, people from Saudi Arabia * Saudi culture, the culture of Saudi Arabia * House of Saud The House of Saud ( ar, آل سُعُود, ʾĀl Suʿūd ) is the ruling royal family of Saudi Arabia. It is c ...
Ministry of Petroleum A ministry of petroleum or ministry of oil is a kind of government ministry often found in countries that are producers and exporters of petroleum. Examples include: * Ministry of Oil, Kuwait * Ministry of Oil, Iraq * Ministry of Oil and Gas, K ...
and invited Ali Al-Naimi to invest in country's energy sector. 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 The Pakistan People's Party ( ur, , ; PPP) is a centre-left, social-democratic political party in Pakistan. It is currently the third largest party in the National Assembly and second largest in the Senate of Pakistan. The party was founded ...
, Communist Party and the
labour unions A trade union (labor union in American English), often simply referred to as a union, is an organization of workers intent on "maintaining or improving the conditions of their employment", ch. I such as attaining better wages and benefits ...
.


Energy Policy: 2010–13

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. The policy was announced after the Prime Minister,
Gilani Gilani or Gillani is a toponymic surname (nisba) linked to the Gilan Province in Iran. It is also used by people indicating association with the founder of the Qadiriyya Sufi order Abdul Qadir Gilani. Notable people with the surname (or variants) i ...
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. With immediate effect, the gaseous Neon lights and the
signs Signs may refer to: * ''Signs'' (2002 film), a 2002 film by M. Night Shyamalan * ''Signs'' (TV series) (Polish: ''Znaki'') is a 2018 Polish-language television series * ''Signs'' (journal), a journal of women's studies *Signs (band), an American ...
were banned and the official weekend was extended from one to two days in an attempt to conserve electricity. Under this policy, several attempts were made by Gilani government to
privatise Privatization (also privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation when ...
the energy sector. 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. After much criticism and public demonstration in 2012, the PPP government decided to
nationalised Nationalization (nationalisation in British English) is the process of transforming privately-owned assets into public assets by bringing them under the public ownership of a national government or state. Nationalization usually refers to pri ...
the energy sector and issued clear directives to regulate the energy corporations to produce the power generations.


Energy Policy: 2013–18

Musadik Masood Malik Dr. Musadik Masood Malik is a Pakistani politician who has been a Member of the Senate of Pakistan since March 2018 and serves as the Minister of State for Petroleum since 28 April 2022. He served as the Federal Minister of Water and Power in ...
was appointed Federal Minister, Water and Power of the Pakistan Government in May, 2013. Within two months, he was replaced by
Abid Sher Ali Abid Sher Ali (born 21 November 1971) is a Pakistani politician who served as Minister of State for Power, in the Abbasi cabinet from August 2017 to May 2018. Previously, he served as the Minister of State for Water and Power from 2013 to 20 ...
who served in the role until the ministry was abolished in September, 2017. In its place a
Ministry of Energy A Ministry of Energy or Department of Energy is a government department in some countries that typically oversees the production of fuel and electricity; in the United States, however, it manages nuclear weapons development and conducts energy-relat ...
was created.
Awais Leghari Sardar Awais Ahmad Khan Leghari (Urdu language, Urdu: اویس احمد خان لغاری‎; born 22 March 1971) is a Pakistani politician who is currently an Finance department, Punjab (Pakistan), Minister of Finance Department & Revenue Punjab ...
served as the first energy minister of the country until the end of the government's tenure. 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. 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. 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. It was followed by Sindh and Punjab governments which contributed 935 MW and 580 MW respectively. Balochistan government didn't inaugurate any public sector power project during its tenure. 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. Furthermore, there was still a wide demand and supply gap during high temperature months which led to periodic, planned load-shedding. 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.


Conservation and consumption

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. Power outages can last 6–8 hours a day in the cities and many more in the rural areas. 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." Experts have warned of an impending energy crisis since 2006. 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. Pakistan Electric Power Company estimates that there is a shortage of 6 gigawatts or about 60% of its total generation. 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. The United States has made improving Pakistan's power infrastructure one of its top priorities. 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.


Power sources and electrical energy

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 . Street markets have been asked to close early. Commercial centres except drug stores will be closed at and wedding celebrations will be limited to three hours. The government will pay off its debt to power producers allowing them to pay fuel suppliers. 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. Tube wells will not be allowed to operate from to . The measures will be reviewed on 30 July 2010.


Consumption by computers

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. In a survey published by the ''
Express Tribune ''The Express Tribune'' is a daily English-language newspaper based in Pakistan. It is the flagship publication of the '' Daily Express'' media group. It is Pakistan's only internationally affiliated newspaper in a partnership with the ''Intern ...
'', 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.


Variations by regions

In the days following the announcement, traders in Lahore rejected the government's decision and kept the markets open after in defiance of the ban. Shops were kept open in other cities also after . Kashif Shabbir, president of the
Rawalpindi Rawalpindi ( or ; Urdu, ) is a city in the Punjab province of Pakistan. It is the fourth largest city in Pakistan after Karachi, Lahore and Faisalabad, and third largest in Punjab after Lahore and Faisalabad. Rawalpindi is next to Pakistan's ...
Chamber of Commerce warned the situation would get worse if authorities used force to implement the decision. There was confusion over implementation of the two-day weekend, and many banks and educational institutions remained open. Commenting on the defiant mood of the traders, an editorial in '' Dawn'' urged everybody to find middle ground. 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 The Provincial Assembly of Sindh ( ur, ) is a unicameral legislature of elected representatives of the Pakistani province of Sindh, and is located in Karachi, the provincial capital. It was established under Article 106 of the Constitution of ...
condemned the decision and some of them called it "a conspiracy to create a law and order situation." Former Nazim of Karachi,
Naimatullah Khan Naimatullah Khan (1 October 1930 – 25 February 2020) was a Pakistani politician who served as the City Nazim (Mayor) of Karachi from August 2001 to June 2005. Early life and career He graduated from Punjab University with a Masters in Jour ...
warned that curtailing the power supply of the city could lead to street battles between protesters and law enforcement. Some analysts have predicted that reduction in the banks' workweek to 5 days will result in revenue losses. 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. 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.


International co-operation

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. Pakistan is also exploring to import PNG via pipe line through Wagha border from India. India would import the required
LNG Liquefied natural gas (LNG) is natural gas (predominantly methane, CH4, with some mixture of ethane, C2H6) that has been cooled down to liquid form for ease and safety of non-pressurized storage or transport. It takes up about 1/600th the volu ...
and re-gasified LNG (RLNG) would be pumped through its pipelines up to the border point.
Iran–Pakistan gas pipeline The Iran–Pakistan gas pipeline, also known as the Peace pipeline, or IP Gas, is an under-construction pipeline transport, pipeline to deliver natural gas from Iran to Pakistan. History Inception The idea was conceived by a young Pakistani ...
is pending for a long time to receive PNG from Iran for the needs of both Pakistan and India.


See also

*
Effects of global warming on South Asia Climate change in South Asia is having significant impacts already which are expected to intensify as global temperatures rise due to climate change. The South Asia region consists of the eight countries Afghanistan, Pakistan, India, Nepal, Bhuta ...
* Electricity sector in Pakistan * Energy crisis


References


External links


Video: Pakistan's Power Crisis
The New York Times, 26 April 2010
Video: Power cuts anger Pakistan traders
Al Jazeera English Al Jazeera English (AJE; ar, الجزيرة‎, translit=al-jazīrah, , literally "The Peninsula", referring to the Qatar Peninsula) is an international 24-hour English-language news channel owned by the Al Jazeera Media Network, which is own ...
, 22 April 2010
Energy crisis in Pakistan in PicturesPowerSave.pk Awareness Campaign by PEPCO
{{Science and technology in Pakistan Energy in Pakistan Pakistan Pakistan Policies of Pakistan Government of Yousaf Raza Gillani