Aqib Abbasi
Across Pakistan, daily blackouts lasting 8–12 hours plunge various structures into despair. It is estimated that more than 40% of the population still considers reliable electricity a luxury, highlighting the urgency of the country’s energy crisis. Pakistan is facing a severe energy crisis, marked by ongoing shortages, periodic blackouts, and an insufficient supply of electricity to meet its constantly expanding demands. The reported increase in the electricity shortage to 7,000 megawatts indicates that Pakistan’s energy crisis has gotten significantly worse. In the summer, there is a need to produce 28,200 megawatts, while there are only 21,200 megawatts available. At the moment, 4,635 megawatts of electricity are produced by hydropower, 1,060 megawatts are produced by government thermal power plants, and 9,677 megawatts are produced by IPPs. Numerous power plants across the nation have had to close due to the lack of coal, gas, and oil. Several regions of the country are experiencing serious load shedding for a period of 10 to 12 hours as a result of this shortfall. These blackouts are the direct cause of energy crises. Energy is one of the most vital necessities for humans and is essential to the economic growth of any country. However, Pakistan is currently experiencing serious energy crises related to fuel and power in each of the major domains. In a white paper released in 2019, the Asian Development Bank asserted that Pakistan is an energy-insecure nation. In addition to Pakistan, many other nations—even developed ones—also undergo energy shortages. Energy crises in the past have been caused by regional shortages in supplies, financial frauds, and conflicts. Some contend that deviations from the point of economic equilibrium in the supply and demand of energy are caused by government policies like raising taxes, the centralized control of energy companies, and manufacturing control. Thus, several factors contribute to this crisis, such as unimportant investments, old infrastructure, and an excessive reliance on fossil fuel-based energy sources. Political unrest, group-shifting leadership, the involvement of stakeholders in business decisions, and reluctance to confront the problem and find a solution are all factors that contributed to Pakistan’s deteriorating energy crisis. Due to a lack of coordination, none of the cohesive energy policies could help Pakistan’s unstable economy and energy sector. Furthermore, the circular debt, which stands at an astounding 2.5 trillion Pakistani rupees, has increased by 10% from the previous fiscal year. Studies predict that it will reach 4 trillion Pakistani rupees by 2025. In the meantime, OGDCL and PPL are unable to enter new markets because of the heavy financial strain, and their revenue is entangled in an endless debt cycle. In light of the country’s diminishing oil and gas reserves, the absence of fresh funding for exploratory projects is alarming. Energy theft is also one of the causes of the crisis. Aside from these other factors, Pakistanis have actively adopted this norm, unaware of its ultimate impacts on their country. Each year, 100 billion bills remain unpaid and 4,500 megawatts of energy are stolen. The economy suffers from these practices. The whole country is currently facing an energy crisis as a result of all these factors. To overcome all these factors and the existence of a powerful energy sector, strong economic foundations are necessary. Pakistan’s economy is in a terrible state of affairs in this regard. A weak and unsteady government can’t collect funds from its people to start new initiatives. Additionally, states like these are not the best places for loans and investments from abroad. To draw in outside investment in the power industry, the government should establish favorable conditions. This can be achieved by offering affordable taxes, accelerating legal processes, and guaranteeing a solid policy structure. Furthermore, the regulatory structure governing the power industry should also be reinforced to guarantee impartial competition, open decision-making, and efficient enforcement of the law. The energy crisis continues to worsen due to an absence of investments, which results in a shortage of capacity for producing electricity. Lack of funding makes it difficult to maintain current infrastructure, develop new power projects, or implement innovative technologies. The use of contemporary technology is the element that needs government attention. Making good use of technology is something the leadership ought to consider. To combat the crisis, the government must urgently employ innovative equipment. If solar and wind energy are used, the current shortage of energy can be reduced to 50 years. To put it briefly, Pakistan’s ongoing energy crisis is endangering its survival and stability and has seriously stopped its economic and social growth. A significant unsecured debt in the energy sector, a lack of political acceptance, slow growth in the economy, and stolen energy are some of the factors contributing to this crisis. The government has to act right away to address this crisis. Pakistan’s energy crisis calls for a coordinated and all-encompassing response. To overcome the obstacles and find sustainable solutions, the government must collaborate with stakeholders and foreign partners. Pakistan may address its energy difficulties and clear pathways for growth in the economy and stability by carrying out electric power changes, developing durable structures, and putting resources into alternative sources of energy.