The Power & Energy Sector of Pakistan
Pakistan’s power and energy sector have made progress in certain areas, significant challenges remain to be addressed to ensure a reliable, affordable, and sustainable energy supply for the country’s growing economy and population. Pakistan has been grappling with an energy crisis characterized by frequent power outages, load shedding, and an imbalance between energy supply and demand. This has hindered economic growth and industrial productivity.
The country has been working on increasing its power generation capacity through various means, including the construction of new power plants, both conventional (thermal) and renewable (hydroelectric, wind, solar). Projects such as the China-Pakistan Economic Corridor (CPEC) have contributed to the addition of new power generation infrastructure.
In recent years, Pakistan has been making efforts to diversify its energy mix by promoting renewable energy sources such as solar, wind, and hydroelectric power. Several solar and wind power projects have been initiated, aiming to harness Pakistan’s abundant renewable energy potential.
Pakistan also imports a significant portion of its energy needs, including oil and gas. The country has been exploring opportunities for energy cooperation with neighboring countries, such as Iran and Qatar, to secure its energy supply.
Upgrading and modernizing the transmission and distribution infrastructure have been ongoing priorities to improve the efficiency and reliability of electricity delivery across the country. However, challenges such as technical losses, theft, and inadequate infrastructure continue to persist.
Pakistan has been working on formulating and implementing energy policies and reforms to address the challenges in the sector, attract investment, and promote sustainable energy development. Initiatives include restructuring of the power sector, tariff reforms, and improvement of governance and regulatory frameworks.
Despite efforts to address the energy crisis, Pakistan’s power and energy sector still face challenges such as financial sustainability, circular debt (accumulated debt in the energy sector), governance issues, and policy implementation hurdles.