Pakistan’s Energy Crisis

Bini Dahal

One after another, countries in the South Asian region seem to be suffering from an economic slump in one form or the other. In 2022, Sri Lanka was crippled by one of the worst economic crises. As the island nation is now recovering from such a problem, Pakistan, another nation in the region, is going through a difficult situation. In its recent move, Pakistani government has asked shopping malls and centres to shut down early. The same rule applies for government offices as well. These actions are part of a newly agreed energy conservation plan. But, why is the country taking such decisions?

Pakistan is known for its heavy dependence on fossil fuels. The nation imports fossil fuels, which also include the liquefied natural gas, to meet the electricity demand of more than 225 million people. The price of these fuels has gone up exorbitantly in recent times, putting an additional burden on consumers. With consumer prices rising by around 25 per cent, Pakistani rupee is depreciating, causing imports to be very expensive. The country’s foreign currency reserve is stated to have declined by 50 per cent. So, the nation’s foreign currency reserve is enough for only one month. 

Therefore, the country has now no other option but to conserve and make use of the existing fuel to the maximum.  It is mentioned that by closing the shopping malls alone, the country can save as much as 62 billion rupees annually. A document released by the Asian Development Bank (ADB) in 2019 pointed out that the continued import of fossil fuels is not stable for Pakistan and that it can lead to the country becoming energy insecure in the long-run. Sadly, that is exactly what the country is now reeling from.  

Another dimension to look into is the country’s vulnerable situation. Natural disasters are common and frequent in Pakistan. Disasters like floods have caused sufferings to the people and hit livelihood sources. On the whole, this has further put the economy in a fragile state. Like every other developing nation, Pakistan is also greatly relies on loans and grants. Financial assistance is a way for the nation to import fossil fuels and to even pay back the debt. But it is important to highlight that this is in no way a long-term solution. 

The country will have to shift towards the use of alternative energy sources that include wind energy, solar energy and so on. Such strategic replacement could be helpful for the nation to reduce its imports while easily fulfilling people’s energy demands for a long time.  Because sustainability is necessary, Pakistan and countries like ours should focus on mobilising green energy to the fullest. 

To reduce the current electricity consumption and take up sustainable sources of energy, awareness, knowledge sharing, behavioural changes and policy-level interventions are crucial. There is a need for mindful practice from every level, be it local, regional or national. Also, international donors should provide the necessary support through investment, and skill-based training, among others. 

While this won’t happen at once, Pakistan should make efforts for gradual change and reduce the current dependency on fossil fuels. Nepal’s huge reliance on imported petrol and diesel has also backfired multiple times. So, we should also learn a lesson from this. We need to acknowledge that by shifting the focus and making little changes and corrections, improvements can be brought to the economy.