Pakistan Reader

CWA # 1432
Pakistan Reader
Energy in Pakistan: Five Takeaways

Vetriselvi Baskaran
31 July 2024
Photo Source: Pakistan Economic Survey 2023-2024

On 11 June, Finance Minister Muhammad Aurangzeb unveiled the Pakistan Economic Survey report for the fiscal year 2023 -24. Pakistan economic survey is an annual report published by the Ministry of Finance that provides an in-depth analysis of “macro-economic trends, sectoral accomplishments, development policies and strategies.” The report contains 17 chapters:  from Growth and Investment to Climate Change. Energy, one of the chapters in the report provides a detailed analysis of the sector’s growth. The report delineates various measures undertaken by the government pertaining to the energy sector.  Following are the six takeaways from the report:

1.    PPIB has achieved significant accomplishments.

In 1994, the Private Power and Infrastructure Board (PPIB) was created as One Window Facilitator to promote private investment in the power sector. In 2012, the board was given statutory status through an Act of Parliament- PPIB Act, 2012- which allowed it to facilitate certain public sector power and its related infrastructure projects in Independent Power Project mode (IPP). Until now, the PPIB has successfully managed the development of 100 IPPs with a capacity of about 24,958 MW. This has also helped attract Foreign Direct Investment (FDI) of over USD 33 billion. Additionally, PPIB has also initiated five multiple fuel-based IPPs of 1,066 MW which are now at the advanced stages of construction. For cheaper electricity generation, PPIB has further promoted the use of indigenous Thar-coal and hydel resources. This is expected to help in accelerating hydel and Thar-coal-based power generation projects. In this regard, under the Integrated Generation Capacity Expansion Plan (IGCEP) 2022 and other policies, PPIB is striving to complete 12 ongoing IPPs with a capacity of 1,563 MW during 2024-26 in order to comply with short-term targets.

During July to March in FY 2024, PPIB has succeeded in the implementation of various stage IPPs. This includes the successful completion of three solar projects by Scatec, Norway (PPIB assisted in securing commercial Operation Dates), the Suki Kinari project (the largest hydro IPP of 884 MW), and the 32 MW Bagasse-based project by Shah Taj Sugar Mills.  The net metering-based solar installation has also surpassed 400 in number due to efforts by the PPIB.

2.    The government has focused on promoting and developing indigenous renewable energy resources

In an effort to reduce the impacts of prevailing high prices of imported fossil fuels in international markets and its result on high electricity tariffs, the government has taken initiatives for the promotion and development of indigenous renewable energy resources. In this regard, the government has approved the Framework Guidelines for Fast-Track Solar PV Initiatives 2022 for fast-track deployment of solar PV. This includes three key frameworks.

First, the substitution of expensive imported fossil fuels with Solar PV Energy. Under this, the government has decided to implement three solar PV projects in Kot Addu or Muzaffargarh, Jhang, and Layyah.

Second, to overcome the poor power quality in Pakistan, the government plans to advance Solar PV generation on 11 kV feeders i.e. medium-voltage network, thereby reducing local losses and improving the voltage situation. This will also help provide cheap electricity to the national grid without any infrastructural upgrades. In addition, under this initiative, an additional 2000 MW of solar PV capacity will be added to the country’s existing capacity.

Third, the solarization of public buildings. This move will help in reducing the electricity load for a particular portion, reduction in electricity bills in public offices, and relieve electricity utilities from long-term dues.

3.    Despite international embargoes, six new Nuclear Power Plants have been developed.

After the operationalization of the Karachi Nuclear Power Plant (KANUPP), Pakistan attracted international embargoes, on civil nuclear technology transfers. For nearly thirty years, this move affected the expansion of nuclear energy generation capacity. However, due to persistent efforts both technological and manpower, Pakistan was able to develop an additional six NPPs with 3530 MW capacity. These new reactors are Pressurized Water Reactor (PWR) and were designed and built with Chinese assistance as opposed to KANUPP which was built with Cananda’s help.  These reactors boast a unique feature: they can generate electricity for 14-18 months once fuled.  This saves the country from “short-term energy price fluctuations” and ensures a “secure energy supply” to the grid. These six power plants generated around 16,753 million units of electricity during July -March FY 2024. Further, this has also helped the country avoid about ten million tonnes of Green House Gas emissions.

4.    There has been a decline in demand for oil.

During July -March FY2024, a notable decline in oil demand was witnessed: the demand declined from 13.3 million tonnes to 12.3 million tonnes. The Survey suggests that this could be the result of a decrease in demand for High-Speed Diesel (HSD), Motor Spirit (MS), and Furnace oil (FO) which constitute 95 per cent of the demand. The demand for petroleum products remained at 17.5 million tonnes during FY2023 and declined by 7.23 per cent during FY2024.  There has been a shift from thermal to renewable sources of energy.

During July–March 2024, the country's total installed power capacity was 42,131 MW, with thermal power accounting for 59.4 per cent of the overall capacity with hydel, nuclear and renewable accounting for 54.1 per cent of the share.   The survey revealed that the reliance on thermal power has decreased over the years. This indicates a shift away from “thermal to cleaner sources” and towards a more environmental friendly and indigenous sources of electricity.
 

5.    There have been large-scale renewable energy investments to achieve clean energy goals.

The Private Power & Infrastructure Board (PPIB) has been actively facilitating the development of renewable energy projects in Pakistan through various initiatives. It facilitated renewable energy power projects to achieve milestones and resolve issues faced by different public sector entities. Further, PPIB engaged with the World Bank to conduct a study on renewable energy development in Balochistan, titled “Balochistan Renewable Energy Development Study.” The objective of this study was to strategically develop utility-scale solar and wind power in Balochistan to help meet Pakistan's ambitious renewable energy.  Additionally, it has redesigned and reactivated an online net-metering portal (ONMAP) for the online processing of consumer applications for net-metering-based systems. The portal is currently being expanded with advanced settings such as solar PV equipment verification, tracking, and a rooftop solar monitoring program. PPIB, with the support of GIZ, has also initiated a program for the training of 500 solar technicians using a Competency-Based Training and assessment approach. Furthermore, it is engaged in international initiatives such as the Danish Energy Transition Initiative (DETI) and RELP, an international NGO.

Energy
What did the Economic Survey say in the 2022 and 2023 reports?


Pakistan Economic Survey 2022-23
Energy demand was on the rise mainly driven by economic expansion, population growth, and rapid technological advancements.  However, during the period 2022-23, the country faced challenges due to dependence on imported fossil fuel and energy supply limitations. Thus, the government took initiatives to endorse the utilization of local energy sources such as hydel, solar, wind, and Thar coal. These initiatives bore results in 2023-24. The government also made efforts to substitute expensive imported fossil fuels with “solar photovoltaic (PV) energy, implementing solar PV generation on 11kV feeders, and solarising public buildings.” During this period, the government installed three Thar coal-based power plants with 3,300 MW and an additional six nuclear power plants with 3,560 MW capacities. Accordingly, the electricity generation shares of different sources were 28.6 per cent (hydel), 21 per cent (nuclear), 4.2 per cent (renewables), and 46.2 per cent (thermal). The demand for petroleum products had witnessed a decline similar to the 2023-2024 period. High focus was given to the diversification of energy sources, reduction of reliance on imported fuels, and investment in renewable energy infrastructure to ensure long-term energy security and economic stability.
 
Pakistan Economic Survey 2021-22

This period observed a notable increase in the oil import bill by USD 17.3 billion compared to the corresponding period in the previous year when the increase in the bill was USD 8.69 billion. This increase in bills was fuelled by higher oil prices in the global market and the depreciation of the Pakistani currency. The government had introduced an energy efficiency plan intending to save up to 15 per cent of energy. During this period, the country implemented policies like “The National Power Policy 2013”, “The Power Generation Policy 2015” and “Alternative and Renewable Energy Policy 2019” to ensure the smooth supply of energy. To facilitate private investment in the energy sector, the power generation policy was upgraded. The total energy consumption had increased by 11.5 per cent with a slight change in the percentage share of different sources of electricity generation.


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The World This Week
July 2025 | CWA # 1748

GP Team

The World This Week #318
PM Modi’s Visit to Trinidad and Tobago & Ghana, One big beautiful bill, and Quad Foreign Ministers Meeting
Global Politics Explainer
July 2025 | CWA # 1744

Chittrothu Vaihali

EU-Canada Summit 2025
What is security and defence partnership all about?
Conflict Weekly
July 2025 | CWA # 1742

IPRI Team

Conflict Weekly # 287-88
The 12 Day War and the Congo-Rwanda Peace Deal
Global Politics Explainer
July 2025 | CWA # 1738

Fleur Elizabeth Philip

Thailand and Cambodia
What was the phone call between PM Shinawatra and President of Senate Hun Sen? What is the border dispute between the two? Why has this become an issue?
TWTW Note
June 2025 | CWA # 1735

Padmashree Anandhan

NATO Summit 2025:
Trump making Europe great again
The World This Week
June 2025 | CWA # 1734

GP Team

The World This Week #317
NATO Summit 2025 and Russia-Mali bilateral agreements
Global Politics Explainer
June 2025 | CWA # 1733

Ananya Dinesh

China and the Pacific Islands 
What was the recent China-PIC joint statement about? What it says, and what it means?
TWTW Note
June 2025 | CWA # 1728

M Kejia

G7 Summit 2025:
The Focus on the Middle East and Trade negotiations
The World This Week
June 2025 | CWA # 1726

GP Team

The World This Week #316
China-Central Asia Summit in Kazakhstan, and the G7 Summit in Canada
Global Politics Explainer
June 2025 | CWA # 1725

Brighty Ann Sarah, R Preetha, Santhiya M, Aparna A Nair & M Kejia

Operation Midnight Hammer: US bombs three nuclear sites in Iran
What were the three Iranian nuclear sites that were targeted? What are the B2 Bombers and Bunker Buster Bombs? What do these attacks mean? What Next?
Conflict Weekly
June 2025 | CWA # 1724

IPRI Team

Conflict Weekly #286
The Spiralling Israel-Iran Crisis, and the Dangerous Hunger Hotspots
Global Politics Explainer
June 2025 | CWA # 1721

Rizwana Banu S and Santhiya M

Who are the Afrikaners?
Why is Trump interested in the Afrikaner question in South Africa?
Global Politics Explainer
June 2025 | CWA # 1720

Lekshmi MK

New WMO Report on Arctic Warming
What are the social, economic and environmental implications of Arctic warming
Global Politics Explainer
June 2025 | CWA # 1719

J Yamini  

China’s EV Surge
What contributes to the rise of BYD
Global Politics Explainer
June 2025 | CWA # 1717

J Yamini

Gender Violence in Pakistan:
What are the larger issues in the Noor Mukadam case?
TWTW Note
June 2025 | CWA # 1715

Femy Francis

The US-China:
On Tariffs, Rare Earths and Visas
The World This Week
June 2025 | CWA # 1713

GP Team

The World This Week #315
The UN Ocean Conference in France and the US-China Meeting in London
CW Note
June 2025 | CWA # 1712

R Preetha

The World This Week
June 2025 | CWA # 1705

GP Team

The World This Week #314
Elections in South Korea and Poland I China and the Pacific Island Countries I Bangladesh Election Announcement 2026
Global Politics Explainer
June 2025 | CWA # 1703

M Kejia 

Sagarmatha Sambaad in Nepal
Kathmandu’s Global Agenda for the Himalayas
Global Politics Explainer
June 2025 | CWA # 1700

R Preetha

Ethiopia bans the TPLF
What does the TPLF ban mean for the Pretoria agreement? What next for Ethiopia?
TWTW Note
June 2025 | CWA # 1694

Aashish Ganeshan

The US:
Harvard vs Trump Administration
The World This Week
June 2025 | CWA # 1691

GP Team

The World This Week #313
China-ASEAN-GCC Summit I President Macron's visit to South East Asia I Trump Vs Harvard
The World This Week
May 2025 | CWA # 1690

GP Team

The World This Week #312
Elections in Romania, Portugal & Poland I UK-EU Summit
CW Note
May 2025 | CWA # 1689

Padmashree Anandhan

Ukraine
Continuing Russia’s Aerial Attacks, despite exchange of prisoners
CW Note
May 2025 | CWA # 1688

Ayan Datta

Gaza
The Humanitarian Crisis and Israel’s Renewed Offensive
TWTW Note
May 2025 | CWA # 1685

Aparna A Nair

UK-EU Summit:
First step towards a reset
TWTW Note
May 2025 | CWA # 1683

Aashish Ganeshan

Elections in Portugal:
The Rise of Chega Party and the Search for Political Stability
TWTW Note
May 2025 | CWA # 1679

Aashish Ganeshan

US in the Middle Easr
Trump’s visit to Saudi Arabia, Qatar and UAE
TWTW Note
May 2025 | CWA # 1678

Gauri Gupta

China in Latin America
China-CELAC forum: Strengthening ties with Latin America and Caribbean
The World This Week
May 2025 | CWA # 1677

GP Team

The World This Week #310-311
China in Latin America and the Carribbean I Trump's Middle East Visit I Denmark as the new Arctic Chair
CW Note
May 2025 | CWA # 1675

Lekshmi MK

Turkey:
PKK disbands after 40 years of armed insurgency
CW Note
May 2025 | CWA # 1673

Padmashree Anandhan

Ukraine:
The Discussion in Turkiye and the Elusive Ceasefire
CW Note
May 2025 | CWA # 1671

Abhiruchi Chowdhury

US, Ukraine and Russia:
Air attacks amidst a Minerals deal and Ceasefire Proposals
Global Politics Early Bird
May 2025 | CWA # 1670

Fleur Elizabeth Philip

Singapore Elections in 2025:
People’s Action Party (PAP) Wins, Again
TWTW Note
May 2025 | CWA # 1667

R Preetha and Brighty Ann Sarah

East Asia:
Tough Tariff Negotiations with the US
TWTW Note
May 2025 | CWA # 1666

Padmashree Anandhan

The US-Ukraine
The mineral deal with the US
Conflict Weekly
May 2025 | CWA # 1665
Conflict Weekly # 280-81
India-Pakistan De-escalation I Ukraine Discussion in Istanbul I The Battle over Port Sudan I Disbanding of PKK in Turkiye I France-Algeria Diplomatic Tensions
Global Politics Early Bird
May 2025 | CWA # 1663

R Preetha

Canada Elections 2025:
What do the results convey? What next for Mark Carney?
Conflict Weekly 250th Issue
October 2024 | CWA # 1480

IPRI Team

This Week in History
July 2024 | CWA # 1413

Ramya B

Global Politics Early Bird
May 2024 | CWA # 1336

Femy Francis

This Week in History
April 2024 | CWA # 1275

Ramya B

NIAS Global Politics Database
March 2024 | CWA # 1251

NIAS Africa Team

Africa This Week
This Week in History
March 2024 | CWA # 1246

Sivasubramanian K

NIAS Global Politics Database
February 2024 | CWA # 1226

NIAS Africa Team

Africa This Week
The World This Week
November 2023 | CWA # 1148

GP Team

The War in Ukraine
October 2023 | CWA # 1091

Annem Naga Bindhu Madhuri

Issues for Europe
NIAS Pakistan Weekly
October 2023 | CWA # 1087

PR Team

The World This Week
October 2023 | CWA # 1083

GP Team

Conflict Weekly
August 2023 | CWA # 1049

IPRI Team

IPRI Quarterly Forecasts I Triggers, Trends, and Trajectories
July 2023 | CWA # 1012

Bibhu Prasad Routray

Myanmar continues to burn
The World This Week
July 2023 | CWA # 1009

GP Team

2022: The World This Year
December 2022 | CWA # 879

Padmashree Anandhan

The Ukraine War
2022: The World This Year
December 2022 | CWA # 872

Sapna Elsa Abraham

Europe: Heatwaves, Wildfires, Droughts, and Ice Melt in Alps
November 2022 | CWA # 838

Rishma Banerjee

Tracing Europe's droughts
NIAS Africa Weekly
March 2022 | CWA # 705

NIAS Africa Team

In Focus: Libya
The World This Week: 150th Issue
December 2021 | CWA # 630

GP Team

Europe in 2021
Pakistan Reader
October 2021 | CWA # 588

Abigail Miriam Fernandez

TLP is back again
NIAS Fortnightly on Science, Technology & International Relations
August 2021 | CWA # 528

STIR Team

Space Tourism
GLOBAL PROTEST MOVEMENTS
September 2020 | CWA # 337

Anju Annie Mammen

The FATF Meeting, February 2020
February 2020 | CWA # 235

Lakshmi V Menon

Science, Technology and International Relations
September 2019 | CWA # 162

Lakshman Chakravarthy N

5G: A Primer
South Asia Monthly Brief (Nov 2018)
December 2018 | CWA # 71

Mahesh Bhatta

Nepal
South Asia Monthly Brief (Nov 2018)
December 2018 | CWA # 70

Nasima Khatoon

The Maldives
South Asia Monthly Brief (Nov 2018)
December 2018 | CWA # 69

Harini Madhusudan

India
South Asia Monthly Brief (Nov 2018)
December 2018 | CWA # 68

Sourina Bej

Bangladesh
South Asia Monthly Brief (Nov 2018)
December 2018 | CWA # 67

Seetha Lakshmi Dinesh Iyer

Afghanistan
United States
July 2018 | CWA # 47

Rahul Arockiaraj

East Asia
June 2018 | CWA # 26

Siddhatti Mehta