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What are the Primary Causes of the Energy Crisis in Pakistan?

CSS Current Affairs article | Primary Causes of the Energy Crisis in Pakistan | is written by Amna Sehrish under the Supervision of Sir Ammar Hashmi...

CSS Current Affairs | Primary Causes of the Energy Crisis in Pakistan

The following question of CSS Current Affairs is solved by Amna Sehrish under the supervision of Howfiv’s Pakistan Affairs and Current Affairs Coaches. She learnt how to attempt 20 marks question and essay writing from Sir Syed Kazim Ali, Pakistan’s best CSS and PMS English essay and precis teacher with the highest success rate of his students. This solved past paper question is attempted on the pattern taught by Sir to his students, scoring the highest marks in compulsory and optional subjects for years, and uploaded to help aspirants understand how to crack a topic or question, how to write relevantly, what coherence is, and how to include and connect ideas, opinions, and suggestions to score the maximum.

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Outline

1- Introduction

2- Understanding the term energy crisis

3- Energy crisis in Pakistan: A critical overview

4- What are the Primary Causes of the Energy crisis in Pakistan?

  • Political instability
  • Power theft
  • Insufficient power plants
  • Dependence on oil-based power generation

5- What repercussions does Pakistan face due to the energy crisis?

  • Economic damage
  • Frequent power outages
  • Dependence on imports

6- What pragmatic steps should be taken to curb the menace?

7- Critical Analysis

8- Conclusion

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Answer to the Question

Introduction

Energy is the lifeblood of modern society, economic growth, industrial development, and improved living standards. However, the energy crisis has become a significant bottleneck in an economy’s supply of energy resources. The energy issue is a global threat, and the world is a victim of this menace; unfortunately, Pakistan is not an exception. Pakistan is experiencing multifarious problems regarding energy crises like shortage of power supply, blackouts, water scarcity, and much more. It hampers the country’s economic growth and increases the threat of fuel cost implication, circular debt, and subsidies. Economic damage, political instability, dependence on imports, reduced quality of life, increased poverty, and environmental damage are the hazardous influences of the energy crisis. The abovementioned problems persist due to numerous factors contributing to Pakistan’s current energy predicament. Insufficient power plants, power theft, dependence on oil-based power generation, water scarcity, and political instability have rubbed salt on the country’s wounds. However, today’s worsened energy conditions need a timely course correction. As a result, Pakistan must invest in new power projects and renewable resources and upgrade current power plants to boost efficiency. Furthermore, the government should implement policies to measure and reduce power theft, improve energy conservation, and increase water storage.

Understanding the term energy crisis

Reflecting on the origin of the abovementioned crisis, Pakistan’s impending energy problem may be traced back to the 1990s. The government started two considerable projects in the 1970s, the Mangla and Tarbela dams. With the commencement of these megaprojects, the energy crisis has been avoided. These initiatives have not only helped to solve the energy crisis, but they have also contributed to economic development. Economic expansion drives more energy consumption. The government needs to catch up with and meet demand for several reasons. The failure to deal with the crisis, a lack of policymaking, and misuse of resources have all contributed to the current situation. As we delve into the current crisis, we see that Pakistan is facing a catastrophic energy crisis.

Energy crisis in Pakistan: A critical overview

Pakistan is now experiencing a catastrophic energy crisis, as highlighted above. The electrical gap has increased to 9,000 megawatts, indicating that Pakistan’s energy crisis has reached such proportions. The hot weather has increased the demand to 28,200 megawatts, but the electricity supply is just 21,200. Currently, hydropower generates 4,635 megawatts of energy, the government thermal power plants provide 1,060 megawatts, and IPPs provide 9,677 megawatts. Due to a lack of oil, gas, and coal, the government has had to shut down multiple power facilities. Because of this shortage, certain nation sections are experiencing significant load shedding lasting 10 to 12 hours. People’s lives have been made unpleasant because of power outages. The consequences of these shortages are profound and multifaceted, as explained below.

What repercussions does Pakistan face due to the energy crisis?

The energy crisis has curbed Pakistan’s progress at every level, and it is essential to discuss its severe impacts. Some of them will be discussed in the following section.

  • Economic damage

Economic loss is one of the most serious consequences of the energy crisis. It has had a substantial detrimental influence on Pakistan’s economy. Due to power interruptions, businesses have been forced to shut or cut down operations, and industries have found it impossible to function at full capacity. The high cost of power imposes a hardship on companies, especially small and medium-sized industries, stifling expansion.

  • Frequent power outages

Moving on to the impact of energy imports, high dependency on imports for renewable energy resources has hindered economic growth and put the country into an impasse. Despite having abundant renewable energy resources, Pakistan must import a large quantity of hydrocarbons from outside to satisfy its energy demands because fossil fuels are Pakistan’s primary energy source.

  • Dependence on imports

As highlighted above, oil, natural gas, and coal are Pakistan’s primary energy sources. However, the nation has become increasingly dependent on imports due to inadequate investment in exploration and development operations, with approximately 40% of its entire primary energy supply imported, according to the research. This dependency has been dwindling the economy and worsening the country’s energy concerns. Before exploring the solutions, it is essential to understand the underlying causes.

What are the Primary Causes of the Energy crisis in Pakistan?

The above-discussed problems do not grow automatically. There are many factors responsible for exacerbating the situation. Here, some of the major causes of the energy crisis are discussed.

  • Political instability

In examining the political landscape, Political polarisation and blame-shifting have pushed Pakistan to the brink of an energy crisis. The country’s major political parties have opposing views on energy policy reforms, such as changes in tariff structures, incentives for renewable energy projects, laws for private sector engagement, and improvements in governance and transparency. They also take different approaches to obtaining foreign investment for energy projects, collaborating with international partners, and pursuing technical advances to improve energy production, delivery, and efficiency. The Kalabagh dam, for example, has the potential to generate 3600 MW of energy. However, politicians from KPK and Sindh have consistently stymied its completion. Because of a lack of political agreement, there is no long-term, consistent energy policy. Because of the uncertainty, private investors are cautious to commit to long-term initiatives in the absence of a secure policy environment. Additionally, illegal activities exacerbate the crisis. Another significant contributor to the energy issue is persistent power theft.

  • Power theft

The nefarious practice of power theft is widespread across Pakistan. The government lost Rs380 billion due to electricity theft in the fiscal year 2022-2023, and the cost is expected to rise to Rs520 billion the following year. These unpaid payments and power theft, together with the increased circular debt, negatively influence the country’s energy industry and economy. The financial challenges involved cannot be overlooked either.

  • Insufficient power plants

Another factor contributing to the energy crisis was the government’s inability to raise financing to begin new power projects. The economic situation of each nation is important in collecting money. Pakistan’s existing economic status is insufficient to entice international investment. The budget deficit influences the collection of money. According to the Economic Survey of Pakistan, its budget deficit in 2021 was Rs.1.13 trillion. Because of the enormous budget imbalance, it is hard to begin new power projects without a certain quantity of funding. However, despite these challenges, there are pathways to a brighter future.

What pragmatic steps should be taken to curb the menace?

Although the energy crisis lies at the heart of Pakistan’s multiple problems, it is not an issue without a solution. Failure provides a reason to ponder what went wrong in the past. Here, some practicable measures are suggested that may prove helpful in ameliorating the condition.

Pakistan is confronted with an unprecedented energy crisis as we face this unprecedented challenge. The current government must analyse the gravity of the problem and take action to find the best available remedies. Energy output remains stagnating, but consumption is increasing by the day. The administration seems to have omitted this component from its agenda. This misinformation has resulted in Pakistan’s energy dilemma. Our officials must put aside their differences and work for the nation’s sake. If there seems to be unity and accord among leaders, Pakistan may be guided toward development. Harnessing technology is also a critical step forward.

The utilisation of contemporary technology is an issue that requires the government’s attention. The leadership should think about how to employ technology. To address the situation, the administration urgently needs to deploy sophisticated equipment. Solar and wind energy can only minimise the energy problem to 50 years. This strategy has likewise failed to capture the attention of our elected officials.

Critical Analysis

While the essay presents a comprehensive overview of Pakistan’s energy crisis, it necessitates a critical analysis to deepen the understanding of the proposed solutions. The suggested measures, such as investing in new power projects and renewable resources, while optimistic, do not adequately address the complexities involved in transforming the energy sector. Considering the country’s economic constraints, there is a lack of exploration into the feasibility of such investments. The emphasis on technological solutions like solar and wind energy is also promising. However, a more nuanced discussion on infrastructure needs, cost implications, and the readiness of the national grid to integrate renewable sources is required. The role of international cooperation and financial support is also crucial, given the significant capital required for energy sector reform, which the essay has not thoroughly examined. The current administrative capacity to implement the suggested policies and the socio-political will to enforce them are equally important and merit more detailed scrutiny. The essay could also benefit from discussing the potential of energy efficiency measures, which are often more cost-effective than new generation capacity. Furthermore, the analysis should consider the impact of these energy policies on the average consumer, particularly in terms of tariffs and energy access. This level of critical analysis is vital to transition into the conclusion, ensuring that the way forward is hopeful and grounded in a pragmatic assessment of the situation.

Conclusion

In conclusion, decisive action must be taken to address these issues. All of these things have contributed to the country’s energy predicament. There are issues, but effective procedures and suitable solutions may be utilised to address them. These elements provide light on a variety of issues confronting Pakistan. The energy situation has reached a critical juncture that must be handled immediately. Politicians must consider Pakistan’s worsening condition. They should put their own interests aside and prioritise the nation’s interests. As a result, now is the time to take the initiative to avert the approaching energy catastrophe; otherwise, the nation would be doomed to darkness. Then there’ll be no use in grieving over spilt milk.

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