Energy Sector of Pakistan

Topics: Energy development, Renewable energy, Nuclear power Pages: 8 (2439 words) Published: May 23, 2013

1.Overview.Energy is identified as one of the four major drivers of growth, the other three being agriculture, small and medium enterprises, and information technology. Pakistan realising the importance, is making concerted efforts to speedup the development of energy resources so as it may effectively contribute to the nation's economic growth and well-being. The four major components of government’s strategy for energy sector development include:- a.Increasing energy supplies to meet the growing demand.

b.Expanding and upgrading transmission and distribution infrastructure. c.Increasing end use energy efficiency.
d.Maximum indigenization.
2.Energy Needs of Pakistan
a.Present Energy Needs Vis-à-vis its Supply in Pakistan.Pakistan's economy is undergoing significant changes since 1998-99; the improvements made in the macroeconomic indicators are, in particular, noteworthy. The real GDP increased from 5.1 per cent in 2002-03 to 6.4 per cent in 2003-04 and was 8.5 per cent for the fiscal year 2004-05. The projected growth rate for the next five years is estimated to be 7-8 per cent . One can assume that without significant expansion in the economic activity in the country, this growth rate will be difficult to sustain for the next five years. With expansion in economy the demand in energy will also increase. Government of Pakistan's Medium Term Development Framework (MTDF) projects the growth in the demand of electricity, petroleum products, natural gas, and coal at an average annual rate of 8.4%, 4.3%, 7.6%, 18.9% respectively . Although, both the demand and supply of energy has been increasing for the last decade and a half, the per capita consumption of energy in Pakistan remains low. As compared to their counterparts in Malaysia and China – where per capita consumption of energy stands at 92 MBTU and 34MBTU, respectively – the per capita consumption in Pakistan is 14 MBTU. Figures 1 and 2 show an upward trend in the supply and per capita availability of energy in tonnes equivalent of energy (TOE) in Pakistan since 1990. Figure 1:Energy supply (million TOE) Source Economic Server 2004-05

Figure 2:Per Capita Availability in TOE

3.Energy Resources. At present, the energy sector in Pakistan consists of the following:- a.Power.
4.Pakistan's total primary energy supply in tonnes equivalent of oil (TOE) in the fiscal year 2003-04 stood at 50.8 million TOE. The primary energy supply has seen a constant increase since 2001. It increased by 4.4 per cent from 2001-02 to 2002-03 and by another 8 per cent from 2002-03 to 2003-04. Figure 3 shows the share of different energy resources in the primary energy mix supplies. The patterns of energy consumption have also registered an upward trend.

5.Structure of Power Sector in Pakistan.Only about half of 140.5 million people in Pakistan have access to electricity. The growing pace of urbanization and industrialization also increases the demand for electricity. To meet power requirements of Pakistan, reform of the power sector through restructuring and deregulation is high on the agenda of the Government of Pakistan, which is committed to pursuing a far-reaching reform program for the power sector and to help meet the country's future power needs. Implementation of the envisaged program will bring about a gradual transition of the power system from integrated, state-owned utilities to a decentralized system with separate generation, transmission and distribution entities, having substantial private ownership and management, reflecting and encouraging a commercial and competitive operating environment. 6.Pakistan has two vertically integrated public sector power utilities i.e Pakistan Water and Power Development Authority (WAPDA) and Karachi Electric Supply Corporation (KESC). WAPDA supplies power to all of Pakistan, except the metropolitan city of Karachi, which is supplied by KESC....
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