Energy policy of Pakistan
The Pakistan national energy policy was announced on April 22, 2010, by Prime Minister of Pakistan, Yousaf Raza Gillani in response to growing power shortages in the country. The announcement was made after a three day conference in Islamabad that discussed the causes of the power crisis in Pakistan and possible steps to relieve it. Neon signs were banned and the official weekend was extended from one to two days in an attempt to conserve electricity.
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.
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 11 am. Street markets have been asked to close early. Commercial centers except drug stores will be closed at 8 pm and wedding celebrations will be limited to three hours. The government will pay off its $1.38 billion debt to power producers allowing them to pay fuel suppliers. Power supply to Pakistan's commercial capital Karachi will be decreased by 300 megawatts in order to allow fairer distribution of power to the remaining parts of the country. Tube wells will not be allowed to operate from 7 pm to 11 pm. The measures will be reviewed on July 30, 2010.
In the days following the announcement, traders in Lahore rejected the government's decision and kept the markets open after 8 pm in defiance of the ban. Shops were kept open in other cities also after 8 pm. Kashif Shabbir, president of the Rawalpindi 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 condemned the decision and some of them called it "a conspiracy to create a law and order situation." Former Nazim of Karachi, Naimatullah Khan 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 Rs380 billion) of the economy, despite the government has spent Rs1.1 trillion as subsidies on the sector in the last four-year which accounts for 2.5 percent of the total volume of economy.
President Asif Ali Zardari has said that the government realised the enormity of the challenge of energy shortage and was determined to overcome it in the shortest possible time.
- "Pakistan's PM announces energy policy to tackle crisis". BBC. April 22, 2010. Retrieved 22 April 2010.
- "Steps taken to tackle energy crisis". Geo TV. April 22, 2010. Retrieved 23 April 2010.
- Tavernise, Sabrina (April 26, 2010). "Pakistanis Living on Brink, and Often in the Dark". The New York Times. Retrieved 28 April 2010.
- "Pakistan turns off lights to end energy crisis". Khaleej Times. April 22, 2010. Retrieved 22 April 2010.
- Shah, Saeed (April 21, 2010). "Pakistan to impose wedding curfew as power shortages cause civil unrest". The Guardian (London). Retrieved 23 April 2010.
- "Major energy crisis feared". Dawn. July 29, 2006. Retrieved 24 April 2010.[dead link]
- "Pakistan needs to tackle energy crisis". Dawn. June 24, 2006. Retrieved 24 April 2010.[dead link]
- "Electricity shortfall reaches 6,000MW". Dawn. April 18, 2010. Retrieved 23 April 2010.
- "Crisis talks as power shortages hit Pakistan industry". Reuters. April 22, 2010. Retrieved 22 April 2010.
- "Pakistan announces measures to save energy". Forbes. April 22, 2010. Retrieved 22 April 2010.[dead link]
- "US to help Pakistan tide over energy crisis". Dawn. April 20, 2010. Retrieved 24 April 2010.
- "Pakistan War on Power Deficit to Shut Offices, Ban Neon Signs". Bloomberg Businessweek. April 22, 2010. Retrieved 22 April 2010.
- "Gilani vows to reduce load-shedding". Dawn. April 23, 2010. Retrieved 22 April 2010.
- "Energy conservation strategy announced". The News International. April 23, 2010. Retrieved 23 April 2010.
- "Traders defy order of markets' closure". Dawn. April 23, 2010. Retrieved 23 April 2010.
- "Traders reject Malik's warning, refuse to close shops at 8 pm". Dawn. April 24, 2010. Retrieved 24 April 2010.
- "Two holidays: confusion over implementation". The News International. April 24, 2010. Retrieved 24 April 2010.
- "Traders’ defiance". Dawn. April 25, 2010. Retrieved 25 April 2010.
- "Karachi lights being turned off to overcome energy crisis". Dawn. Retrieved 24 April 2010.
- "Two-day weekend to hurt banks’ earnings". The News International. April 25, 2010. Retrieved 25 April 2010.
- Economic cost of energy crisis estimated at Rs380bn, The News, June 01, 2012
- Disengagement not an option: President Zardari, Geo News, June 01, 2012
- Video: Pakistan's Power Crisis, The New York Times,April 26, 2010
- Video: Power cuts anger Pakistan traders, Al Jazeera English, April 22, 2010
- Energy crisis in Pakistan in Pictures
- PowerSave.pk Awareness Campaign by PEPCO