Pakistan is currently grappling with a severe energy crisis, marked by a widening gap between growing energy demand and insufficient conventional energy supply. This imbalance has resulted in escalating power costs and increased reliance on imports. As reported by Geo News, in October 2023, Pakistan faced an energy deficit of 6,000 MW, leading to an import bill of USD 7 billion.

The National Electric Power Regulatory Authority’s 2022 annual report reveals that Pakistan’s installed generation capacity is 43,775 MW, but only 7% of this comes from renewable sources. To address the crisis, the country needs strategic investments in renewable energy infrastructure and comprehensive policy reforms to ensure a sustainable energy future.

This crisis has historical roots dating back to the 1970s when Pakistan successfully avoided a major energy shortfall through the development of the Mangla and Tarbela dams, which initially provided sufficient hydro-driven energy.

According to Geo News, the crisis is largely attributed to the country’s heavy reliance on non-renewable and costly fossil fuels, which constitute 59% of the energy mix. This issue is exacerbated by problems such as outdated transmission lines, infrastructure deficiencies, power theft, and inefficient energy use.

Additionally, the energy infrastructure is strained by overpopulation, rapid urbanization, and industrialization. A World Bank report projects that Pakistan’s energy demand will rise by 70% by 2030, while supply is expected to grow by only 45%. Addressing the energy crisis requires a multi-faceted strategy.

Energy Crisis 7% Won’t Cut It: Pakistan- Geo News suggests that Pakistan should diversify its energy mix by investing more in renewable sources such as solar, wind, and hydropower. Currently, only 7% of the country’s energy comes from renewables, and increasing this share is crucial. This shift would reduce reliance on costly fossil fuels and align with global trends toward sustainable energy.

Additionally, expanding and upgrading transmission infrastructure can help mitigate line losses and power theft. Addressing corruption and inefficiencies within generation and distribution companies (Gencos and Discos) is also necessary. The severity of the situation has led PML-N leader Nawaz Sharif to express concern over the ongoing crisis.

Electricity bills impact everyone; relief needed

Energy Crisis 7% Won’t Cut It: Pakistan- Nawaz Sharif commented that electricity bills have become a widespread issue, affecting not just the poor but everyone. He claimed that his government had successfully addressed load shedding and regulated electricity rates. Sharif urged current decision-makers to consider the welfare of the people and has called on the Shehbaz Sharif-led administration to make every effort to provide relief to the public.