Pakistan Energy Outlook Essay

Primary energy ingestion in Pakistan has grown by about 80 % over the past 15 old ages. from 34 million dozenss oil equivalent ( TOEs ) in 1994/95 to 61 million TOEs in 2009/10 and has supported an mean GDP growing rate in the state of about 4. 5 % per annum. However since 2006/07 energy supply has been unable to run into the country’s demand taking to deficits. Meanwhile per capita energy ingestion in Pakistan at under 0. 5 TOEs/capita remains merely tierce of universe norm.

Autochthonal natural gas is the largest beginning of energy supply in Pakistan lending 27. 7 million TOEs ( 45. 4 % ) in 2009/10. followed by oil merchandises. chiefly imports. at 21. 3 million TOEs ( 34. 9 % ) . hydel power at 7. 5 million TOEs ( 12. 3 % ) . coal. chiefly imports. at 3. 7 million TOEs ( 6. 1 % ) and atomic power at 0. 8 million TOEs ( 1. 3 % ) . Consumption of autochthonal natural gas has grown quickly in all sectors of the economic system ( residential. commercial. industrial. conveyance and power ) over the past 15 old ages. driven by turning handiness of gas and a low. government-controlled gas monetary value as compared with alternate fuel monetary values. As a consequence. Pakistan has developed a huge natural gas transmittal and distribution web across the state.

However Pakistan’s autochthonal natural gas militias are worsening and a low gas monetary value has become a important deterrence in pulling new gas supplies. either through increased domestic geographic expedition activities or via imports of liquified natural gas ( LNG ) or regional gas grapevine imports. If current gas policies persist. Pakistan’s natural gas supply is expected to worsen from 4 billion three-dimensional pess per twenty-four hours ( bcfd ) in 2010/11 to less than 1 bcfd by 2025/26. This will take to a turning gas/energy deficit making 8 bcfd ( over 50 million TOEs ) by 2025/26 and will deject Pakistan’s mean GDP growing rate over the following 15 old ages.

It is besides improbable that Pakistan will be able to well develop its other autochthonal energy beginnings of hydel power and coal by 2025/26 under current policies. and the energy import demands of the state may turn from the present 30 % to over 75 % of the energy mix by 2025/26 costing over $ 50 billion per annum in foreign exchange.

The government-controlled power sector in Pakistan. one of the largest consumers of primary energy. is confronting turning jobs due to an unrealistic power duty. high inefficiencies. low payment recovery and the inability of the authorities to pull off its subsidies mechanism. This has led to a serious “circular debt” issue which is going a barrier for future energy sector investings.

This Pakistan Energy Outlook papers identifies a set of energy “Blueprints” which. if implemented. could let the energy sector in Pakistan to boom and turn and go the engine for the societal and economic development of the state. leting accelerated GDP growing rates. As with all reform processes. the “Blueprints” will necessitate important political will to put to death and it is hoped that the present and wining authoritiess in Pakistan will lift to the juncture.

Leave a Reply

Your email address will not be published. Required fields are marked *