For the average Pakistani, the challenges in the power sector are felt daily. Frequent load-shedding disrupts children’s studies, leaves them sweating through hot nights, and forces customers to rely on costly generators during outages. We often hear about issues like circular debt, transmission losses, and fuel shortages on the news, but all we want is a stable and affordable power supply. Customers get frustrated, wondering why the system remains broken despite promises of improvement from policymakers year after year. For Pakistan, learning from the energy transformations in India and Malaysia presents a roadmap for addressing its challenges. With the launch of initiatives like the National Solar Mission, India rapidly increased its utility solar power capacity, aiming to achieve 100 GW by 2022. India implemented energy efficiency programs such as the Perform, Achieve, and Trade (PAT) scheme, which helped industries lower their energy consumption. Malaysia has integrated natural gas, coal, hydro, and renewables into its power generation portfolio, reducing its dependence on imported fuels. The Energy Commission of Malaysia played a crucial role in strategic pricing reforms, which gradually eliminated subsidies, encouraged energy conservation, and made the sector more competitive.
Pakistan’s power sector suffers from one of the highest transmission and distribution (T&D) loss rates globally. Inefficient and outdated infrastructure, power theft, and low recovery rates have contributed heavily to the instability in Pakistan’s power sector. Over the last five years, the T&D losses have remained around 17-19 percent, according to the National Electric Power Regulatory Authority (NEPRA). In comparison, countries with well-functioning grids maintain losses under 8-10 percent. As of March 2023, the circular debt reached Rs 2.6 trillion (around USD 9.3 billion), up from Rs 1.6 trillion in 2018.
Investing in renewable energy is another critical component of Pakistan’s sustainable future. The potential for meeting future energy demands through clean sources is substantial, renewable energy projects, which include plans for 350 MW solar and wind power facilities are examples of such projects. Bloomberg recently highlighted Pakistan’s growing interest in renewables, over the next five years, K-Electric plans to integrate approximately 1,200 megawatts of renewable energy into its supply mix, focusing on solar and wind projects.
The government is working on various projects, Pakistan’s first and largest solar power project, Quaid-e-Azam Solar Park (Bahawalpur, Punjab) has a capacity of 1,000 MW planned. Currently, about 400 MW is operational. Gharo-Jhimpir Wind Corridor (Sindh) has immense potential, with an estimated wind power capacity of 50,000 MW. Similarly, Jhimpir Wind Farm and Zorlu Energy Wind Project are 50 MW wind projects that are part of Turkey’s Zorlu Energy Group investment in Pakistan. Operational since 2018, Neelum-Jhelum Hydropower Project (AJK) generates 969 MW and is one of the largest hydropower stations in the country.
Privatisation can serve as a powerful catalyst for growth in Pakistan’s energy sector, injecting market discipline and fostering competition. By privatizing key segments of the energy industry, the government can attract much-needed foreign investment, especially when coupled with a favourable investment climate. Regulatory reforms and incentives for private companies can pave the way for innovation and infrastructure upgrades. For instance, K-Electric’s (KE) investment plan, with over USD 2 billion allocated for the next seven years, showcases how the private sector can drive efficiency, expand capacity, and meet rising energy demands, creating a more stable power supply.
A prosperous energy future for Pakistan hinges on a united effort from the government, private sector, and civil society to address key challenges like infrastructure inefficiencies, regulatory hurdles, and energy shortages. By fostering collaboration, streamlining policies, and encouraging investment in renewable energy, the nation can overcome these obstacles. The integration of modern technologies, coupled with improved energy management practices, will further enhance efficiency across the sector. Additionally, public awareness campaigns promoting energy conservation can help reduce demand pressures. With all stakeholders committed to innovation and sustainability, Pakistan’s energy sector has the potential to not only meet growing demands but also power the country’s economic growth and prosperity.
Power is a critical utility that forms the foundation of economic and social progress, making it indispensable for modern life. In Pakistan, the reliability and accessibility of electricity directly impact industries, agriculture, and everyday households. Stable power enables businesses to operate efficiently, fosters technological innovation, supports essential services, and drives overall productivity. Power shortages disrupt growth, diminish competitiveness, and lead to societal challenges such as unemployment and lower quality of life.
If Pakistan can provide reliable access to electricity by fixing outdated infrastructure and investing in sustainable energy, it would make a world of difference for everyday people. With consistent power, families like mine could stop worrying about frequent outages and soaring bills. We could finally focus on our work, improve our businesses, and enjoy a better quality of life. This change would not only help the economy grow but also lift the burden on countless households, allowing us to plan without the constant stress of unreliable electricity hanging over our heads.
The writer is a communications professional and can be reached at Hadiazaid202@gmail.com