Contents

CREDITS ................................................................................................................................................ 2
ACKNOWLEDGEMENTS .................................................................................................................... 3
ABSTRACT............................................................................................................................................ 4
INTRODUCTION: ................................................................................................................................. 5
NEGATIVE FINDINGS: ........................................................................................................................ 6
POSITIVE FINDINGS: ........................................................................................................................ 10
RECOMMENDATIONS: ..................................................................................................................... 12
CONCLUSION: .................................................................................................................................... 14
Appendix ............................................................................................................................................... 16
Energy Supply and Demand in Pakistan ........................................................................................... 17
Different Sources of energy in Pakistan ........................................................................................... 17
Latest Graphs and Charts .................................................................................................................. 18
Pakistan Wind Power ........................................................................................................................ 19
Electricity Supply Mix ...................................................................................................................... 19
Pictures.............................................................................................................................................. 20
QUESTIONNARE:............................................................................................................................... 21

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CREDITS
All the group members have equally contributed in writing, planning, researching, formatting,
and compiling this long report on energy crisis in Pakistan.

We have evaluated the research by visiting the Wapda to write a comprehensive clear and
detailed report.

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ACKNOWLEDGEMENTS
Firstly we want to thank Allah Almighty who gave us the courage to complete this task that
has been assigned by our teacher. We want to thank Azam Isalm Khan who is Director at
WAPDA who gave us the opportunity to visit WAPDA house. Then we would like to thank
the Deputy Director at WAPDA who gave us her precious time in providing the detailed
information.

We are really grateful to our instructor Miss Tehreem Aurakzai, who was always there to help
us in writing and high lightening an important issue in this report.

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ABSTRACT
This long report consists of the detailed information on the Energy Crisis in Pakistan. Energy
Crisis is getting worse with the passage of time. It also covers the different aspects and the
reasons of this crisis. It highlights the role that WAPDA is playing. The situation was evaluated
by going to WAPDA and interviewing the people there, observing and samples of
questionnaires were also filled by the people there so that we could clearly understand the
situation. This evaluation changed the image of WAPDA that we had in our minds completely.
There are different factors that contribute towards the energy crisis like wastage of energy, high
cost of fuel, monopoly in the businesses etc. The negative and the positive findings and the
conclusion that have been drawn after this evaluation has been explained in detail in the report.
The recommendations have also been provided that can be beneficial in improving this energy
crisis in Pakistan. The graphs and chart have been attached in the appendix along with the
questionnaire.

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INTRODUCTION:
Energy is now the talk of town in Pakistan. Energy has become an important requirement for
the economic development of a country. It plays a pivotal role in the socio-economic
development of any country and is considered to be life line of any economy. Energy is
important in running machinery in factories and industrial units, for lighting our cities.
There has been an enormous increase in the demand of energy as a result of industrial
development and population growth, in comparison to enhancement in energy production.
Supply of energy is, therefore, far less than the actual demand, resultantly crisis has emerged.
An energy crisis can be defined as any great bottleneck (or price rise) in the supply of energy
resources to an economy.

Pakistan’s energy infrastructure is not well developed, rather it is considered to be

underdeveloped and poorly managed. Currently the country is facing severe energy crisis.
Despite of strong economic growth and rising energy demand during past decade, no serious
efforts have been made to install new capacity of generation. Moreover, rapid demand growth,
transmission losses due to outdated infrastructure, power theft, and seasonal reductions in the
availability of hydropower have worsened the situation. Consequently, the demand exceeds
supply and hence load-shedding is a common phenomenon through power shutdown.

The purpose of this report is to acknowledge the causes and effect of energy crisis in Pakistan
and the role of WAPDA in development of hydro power projects for producing cheap electric
energy. Water and Power Development Authority (WAPDA) was established through an Act
of Parliament in 1958. It is an autonomous and statutory body under the administrative control
of the Federal Government. The Authority consists of a Chairman and three Members (Water,
Power and Finance). Wapda was unbundled in the year 2007 whereby the functions of its Power
wing were redefined as Hydel Power Generation and Operation & Maintenance (O&M) of
power houses. Following unbundling of its power wing, WAPDA’s mandate is now
development of water and hydropower resources in an efficient manner.

In order to meet the requirements of the country in both water and hydropower sectors with an
ultimate object to put Pakistan on the track of development, WAPDA has planned to construct
five multi-dimensional water storage dams during the next 3-12 years. The building of these
dams will not only help address acute water challenge but also produce cheap and clean
hydroelectricity.

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These projects will not only be beneficial at the national level but will also be instrumental for
development of remote and less developed regions of the country where they are located.

In line with its mandate, WAPDA is working hard to harness water and hydropower resources
in the country. The idea is to generate affordable, clean electricity, which will provide relief to
the consumers by bringing down the power tariff. The building of water storages will meet the
water requirements besides playing their role for mitigation of flood hazards.

NEGATIVE FINDINGS:
1. Energy Problems in Pakistan:

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Over the years the demand of energy in Pakistan has increased drastically. There is a huge gap
between the demand and supply of energy. There is no integrated planning regarding the energy
productions and supply. Enormous
indigenous resources of are not properly
utilized to overcome the energy crisis. This
has adverse effect on the economic growth
of the country.

Every citizen of Pakistan is the victim of

energy shortage. Load shedding of 12 hours
or more affects education, trade, industries
and hospitals etc. Many of the Pakistan’s
rural areas have no access to electricity. Due to power theft and poor quality infrastructure the
transmission loss is 30%. In some areas rotating blackouts is necessary.

2. Government’s Inefficiency:

Government works as the facilitator and arbitrator for the energy sector. It does not provide
enough funds for proper functioning of this department. After the initiative step by the
government the private sectors will follow the lead.

Government is making short term plans for resolution of this issue. No efficient plans are made
to overcome expenses, set rules and regulations in this sector, hire experts and price reduction.
Investments are being made on expensive hydel projects rather than cost effective river
projects.

3. Inefficiency of the electricity authorities:

WAPDA and KESC are very weak organizations. They are unable to reach the increasing
demand of electricity because of insufficient energy resources. Governance has a great impact
on quality of these regulatory agencies.

In Karachi private firms invest in electricity supply for their own benefit. Public electricity
provision has two inefficiencies:

a) Non-performing public sector

b) Private provision by end users.

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 4. Increased energy demand:

The economic growth leads to rise in energy demand but no productive steps have been taken
for its generation. The supply lags behind the demand which results into “Load-Shedding”
phenomenon. The demand of the electricity in Pakistan was about 14,000-15,000 MW per day.
Now this demand has risen to more than
20,000 MW per day. Only 11,500 MW of
energy per day can be produced in
Pakistan per day. This results into a
shortfall of 3,000-4,000 MW per day. This
causes frequent power shutdowns which
have adverse effects on the economic
growth by creating problems for
industries, commerce, trade, education
sector and the daily life of people.

Sources of energy are not efficiently used for power production. There is no coherent energy
conservation policy which is serious threat to economic development and quality life assurance.

5. Fuel and Equipment:

The maintenance of the existing equipment is another reason for the shortage of energy. The
aging of the equipment has resulted into the generation of the electricity which is not according
to the designed requirement. Updating and maintenance of equipment is necessary for better
energy development.

Cost of electricity has increased because of exorbitant increase in the cost of fuel i.e., $40 to
$140 per barrel. WAPDA and KESC are unable to provide electricity on low cost because of
this and therefore, load shedding cannot be moved.

Increasing cost can reduce energy crisis but theft of electricity by consumers adds to the misery
of those who pay the bills honestly.

6. Wastage of energy:

Pakistan lags in the proactive planning of energy conservation. Very few plants have been
installed to generate electricity. Many meetings are held for saving power and introducing new
methods of energy development but there is no practical implementation.
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Not just the government but also the elite class is also responsible for a huge amount of energy
losses. They ignore the consequences of consuming unwanted use of electricity just for the
sake of their luxury. Government should take a step and commence programs for saving power.

7. Less Dam:

Lack of harmony in the political affairs in Pakistan government has less focus in building dams.
There is less water storage. Estimates by the economic experts show that we have lost water
worth Rs 240 billion. This water results into flood that takes away everything with it. Around
1600 people, 4 million houses, 20 million innocent people suffering without food, water and
shelter, billions of rupees goods were lost in a recent flood. This damage could have been
prevented if water was stored in dams but due to fewer funds we are unable to construct dams.

8. Unproductive Strategies:

Plans for the conservation of electricity

are not implemented. Weak decisions and
policies leads to corruption at the basic
level which results into corruption and
give rise to favoritism, nepotism,
misappropriate public funds, bad debts
and power misuse.

Our country is still using old techniques

for the power generation and its distribution. Bill collection system is also very poor due to
which many people do not pay bills.

9. Economic and political downfall:

Due to energy crisis Pakistan is suffering from political and economic instabilities. The tenure
of a particular government is 5 years. With the change of every government the policies are
also changed which leads to bad impact on GDP and energy growth.

10. Power Resources:

 Pakistan has large amount of coal but no steps are taken to process it and use it for
power generation.

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  Nuclear power projects are not
being used because trade for
nuclear plant and material is not
allowed, enrichment of
uranium from U235 to U238,
controlling chain reaction and
dumping of waste solid.
 Price of oil that WAPDA and KESC purchase is very high. Increase in oil price results
into high inflation and low economic growth.

POSITIVE FINDINGS:
1. Reason for Load Shedding:

Load shedding takes place due to the shifting of people to the big cities e.g. Lahore, Karachi
etc. because of better facilities. The gap between demand and supply of energy is increasing as
supply is decreasing and demand is increasing.

2. Developing renewable energy:

The government is making great efforts to develop renewable energy. If a serious work is done
then the total shortage can be met from Hydro and wind power sectors. The alternate sources
are now being made for the production of energy that is solar energy, wind energy etc.

3. Poor Distribution system:

WAPDA briefing highlights that poor distribution

system is the main cause of tripping and break down of
the system but no improvement has been made.

4. Extra use of energy:

Maximum energy is being used by the elite class who has all the resources of knowledge and
communication. A lot of lights are used in the markets and shops as most of the people come

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for shopping. Even if a shop is small it is using extra lighting. A few years ago, a law was
passed to close down the markets at 8 pm but now again the shops are opened till late at night.

5. Profit making projects:

In the electricity bill it is mentioned the charge for stealing the electricity as the punishment.
The four companies of WAPDA earn profit that is Pepco, Fesco, Lesco and Iesco. The
hydroelectric projects like Tarbela, Mangla, Chashma, Warsak etc. are completed and earning
profit. Recently, WAPDA gas signed two contracts worth RS 180 Billion with a chinese
company for the construction of main civil works of the run of the river mega hydel Dasu
Hydropower project, situated on the River Indus.

The Rs. 115 billion contract MW-01, which is to be completed in about five years,
includes construction of the main dam, appurtenant structures and hydraulic steel
structures. The second Rs 64.4 billion contract MW-02 includes the construction of an
underground power complex, tunnels and hydraulic structures.
6. No load shedding policies:

When excessive load shedding is going on, then special policies are followed by WAPDA that
there should be no load shedding on
specific days like 9th and 10th of
Muharram, cricket matches of Pakistan
or other specific occasions. They are
directed to supply full power to the
residential areas.

7. Dams on Ravi:

Dams on River Ravi cannot be built

because people have built houses near Ravi. If the government asks the people to leave their

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houses then they would be unable to leave their house and a conflict may start as the houses
needs to be broken down.

8. New law for stealing electricity:

In the electricity bill, it is mentioned that according to the new law punishments would be given
to the person who steals the electricity e.g. he would be arrested without warrant, 7 years of
jail and RS 1 million would be fined. The sections, crime and punishments are mentioned in a
separate table.

9. Saving electricity:

The ways to save the electricity are listed down in the electricity bill so that it can be followed
by the people and they can save the electricity. The electric devices, there quantities, units and
percentage of saving are mentioned in the table.

RECOMMENDATIONS:
Some recommendations are to resolve the problems related to energy crises in Pakistan, which
are as follows:-

 One of the important steps that need to be taken is to meet the demand and supply needs
of electricity. The supply of electricity should be enough to fulfill the demands of the
increasing population.
 When the demand and supply of electricity is managed in a sturdy way, it will lead to
cheaper electricity.
 Government should work on two to three projects at a time to keep the company on
track.
 Improve the political and economic conditions of the country.

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 Produce cheap electricity from dams. Use solar panels and hydroelectricity as an
alternative source. We should focus on hydro generation to produce energy. It can
produce up to 40,000 MW of electricity if we construct dams.
 The government should provide WAPDA with funds that are necessary to initiate and
continue projects that can resolve the energy crises.
 WAPDA should be operated as a single body and not divided into other organizations.
The revenue should be generated by WAPDA itself as it did 15 years ago.
 Commercial markets should close after 6PM and open early in the morning. Therefore,
the daylight should be used properly which leads to less use of electricity.
 Check the use of funds and the sectors in which these funds are utilized.
 Create awareness among the students to wield the electricity and water cautiously.
 Cut down on imports. Increase the exports to raise funds that can be utilized to build
dams and other significant projects.
 The Prime Minister of the country must prioritize the projects according to their
importance.
 Formulate policies for short and long terms. For short-term policy, the first thing, which
is important, is t clear outstanding debt.
 The government should ensure an uninterrupted supply of electricity at an affordable
cost.
 All plants operating in public sector needs to be restored to improve the efficiency,
which will help to bring to bring down the cost.
 Use of coal should be given priority over using furnace oil. Use of gas should be
avoided for example; the Lakhra power plant can be reactivated since it has an abundant
supply of coal.
 The government must complete the Thar power plant, which has 185 billion tons of
lignite coal. Pakistan can generate more than 50,000 MW of energy from this plant.
 Invest in the construction of Kala Bag dam and Basha dam.

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CONCLUSION:
Energy Crisis has, more or less, disturb all the sectors of Pakistan’s machinery ranging from
economy to industry, agriculture to social life, inflation to poverty and it is hampering national
progress in a drastic manner. Energy crisis (Electricity) in Pakistan badly affecting textile
industry of the country.
The study shows that the energy crisis in Pakistan has not emerged over night. It is a result of
long-term ignorance towards development in the energy sector. It seems to be a supply-induced
crisis as there have been a short history of reforms in the energy sector and a lack of focus on
diversification of energy resources and over reliance on imports. Energy plays a pivotal role in
the economic growth of a country which leads to social development and political stability. For
development of Pakistan’s economy, it is necessary to take advantage of any source which can
be harnessed, converted, transported, and used in practical and reasonably efficient ways.
Pakistan’s energy sector has a history of short-term, temporary and urgent initiatives. Although
these initiatives suppressed the issue for a short time but resulted in greater fallouts in the longer

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run due to lack of vision. There is a need of continuity of reforms in the energy sector instead
of short term solutions to periodic energy fallouts. The demand for electricity is growing by
about 9 per cent per annum but there is no positive development on Kalabagh dam or small
canal power projects as yet. Moreover water distribution issues with India are not resolved
which has resulted in further shortages of water supplies. The study highlighted one of the
current significant issues that is affecting negatively on progress of SME sector of Pakistan
since after year 2000 increase of demand of consumption of electricity. The only solution for
running SME sector well on ground is through reducing power shortage. Power shortage can
be reduced by fostering investment in power sector.
The government of Pakistan is spending billions of dollars for the short term production of
electricity. The economy analysts have argued that if the government of Pakistan agrees to buy
few generators of worth less than it is currently spending; there will be 450 megawatt of
electricity in the system within 3 months. Pakistan is generating electricity by old methods.
The world has changed now but we are still using old methods of generating electricity.

Government taking serious steps to overcome energy crisis:

The government does not realize the frustration of the people. Moreover, the problem of our
country has never been the lack of natural resources, but our only problem is lack of sincere
leadership. The power crisis can be reduced by reallocating gas towards power production and
reducing the supply to the transport sector temporarily as power production must take priority
over other sectors. The Prime Minister said that he has issued directives to the concerned
ministries for the rapid completion of Thar Coal Project which would ultimately help to reduce
our energy crisis and would also help in our economic development. He said the country is rich
in natural resources and by utilizing them we can overcome the energy shortage once and for
all.

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Appendix

16
Energy Supply and Demand in Pakistan
The graph shows the record of the demand and supply of energy in Pakistan from 2003 to 2010.

Different Sources of energy in Pakistan

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Latest Graphs and Charts

18
Pakistan Wind Power

Electricity Supply Mix

This graph shows the electricity supply of Pakistan. The horizontal axis labels the time.

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Pictures

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QUESTIONNARE:
Energy awareness questionnaire Project:

“Saving energy…saving our future”

QUESTIONNAIRE OF ENERGY CRISIS IN PAKISTAN

Name: Azam Islam Khan

Age: 52 Years
Email: azamislam72@gmail.com
Occupation: Director WAPDA

1. Do you think energy crisis is a serious problem?

Yes No

2. Does energy crisis make you worry about your future?

Yes No

3. Are you willing to make radical change in your life in order to save energy?

Yes No

4. Are your daily activities affected by load shedding?

Yes No

5. Can current energy crisis be fulfilled through wind energy?

Yes No

6. If we utilize our coal resources will the effect on electricity increase?

Yes No

7. Do the natural resources of country increase the capacity of the energy?

Yes No
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8. Do you have backup electricity power supply at home?

Yes No

9. Does electricity promise the bright future?

Yes No

10. Is there any degree of corruption in your electricity supply setup?

Yes No

11. Have you ever had an opportunity to reduce energy use at home?

Yes No

12. Would you be interested to participate in energy saving activities in the future?

Yes No

13. Would you be interested to participate in energy awareness campaign in the future?

Yes No

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