Power shortages: Pakistan faces severe electricity shortages, which can last for up to 12 hours a day in some areas. The demand for electricity is much higher than the supply, leading to blackouts and load shedding.
Dependence on fossil fuels: Pakistan relies heavily on imported fossil fuels such as oil and gas to generate electricity. This makes the country vulnerable to price fluctuations and supply disruptions in the global market.
Inefficient energy infrastructure: Pakistan’s energy infrastructure is outdated and inefficient. Many power plants are operating below their capacity due to poor maintenance and a lack of investment in modernization.
Low investment in renewable energy: Pakistan has enormous potential for renewable energy, but investment in this sector has been slow. Currently, only around four per cent of Pakistan’s energy comes from renewable sources.
Circular debt: Pakistan’s energy sector is plagued by circular debt, which is the accumulation of unpaid bills and interest among power generators, distributors, and the government. This has led to financial instability in the energy sector and has hindered investment in new projects.
Addressing these challenges will require significant investment in the energy sector, including modernizing existing infrastructure, promoting renewable energy sources, and addressing the issue of circular debt.
Written By: Mustafa Tahir