Year: 2021

Pakistan’s current energy mix is heavily tilted towards oil and gas. Any disruption to their supply chain immediately throws the entire economy off balance. This was amply demonstrated by the disturbance to oil supplies in January 2015 and then in the middle of last year. Similarly, in the case of gas, we are witness to extended queues of vehicles before compressed natural gas (CNG) stations – a familiar sight for years till 2016, which caused colossal losses to the economy. The prevailing shortage of gas is again proving to be…

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The energy crisis has continued to persist in Pakistan at a time when demand for oil and gas is on a rise following a rebound in industrial production and exports in the middle of the Covid-19 pandemic. “The oil and gas production fell 6% and 4%, respectively, in the second quarter (Oct-Dec) of fiscal year 2021 despite new productions from five oil fields and four gas fields was added in the system,” according to a Topline Research report. Earlier, gas shortfall peaked following a drop in temperature to freezing levels…

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The liquefied natural gas (LNG) suppliers have refused to give supplies to Pakistan for the month of February in the wake of recent massive hike in the prices of gas. According to details, Pakistan LNG Ltd (PLL) had advertised a tender on November 28, 2020 for the procurement of two spot LNG cargoes to be delivered in February 2021. On December 28, 2020 the bids were opened and the results were announced, and in accordance with the Public Procurement Regulatory Authority (PPRA) rules, the award intimation was made 10 days…

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Pakistan’s electricity sector is in deep trouble. The recent nationwide blackout on the night of January 9 is just another reminder of the crisis facing the collapsing power sector. But for an average consumer, the most visible impact of this crisis has been their ever-increasing electricity bill. A report published last week suggested that the government had decided to raise the base electricity tariff by Rs1.90 per unit from this month. The announcement, it is said, has been delayed in view of the increase in the fuel prices. The power…

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The monster of circular debt keeps growing in the power sector. Bad governance is the overwhelming source of the circular debt build-up that is officially projected to cross the Rs2.8 trillion mark by June 30. This is almost half of the country’s about Rs5.5tr total tax revenue this year. This means an addition of Rs500 billion during the current fiscal year at an average rate of almost Rs42bn per month, according to a report submitted by the Power Division to the Cabinet Committee on Energy (CCOE) last week. The report…

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