Pakistan: Worst Power Crisis

Pakistan is facing worst sort of power crisis of its history as electricity generation falls to 9,000 mega watts whereas the demand is around 16,000 mega watts. People came out on streets in Lahore and other cities of the province yesterday against extreme and perpetual electric load shedding. CM Shahbaz Sharif has blamed the federal government of putting lives of the people of Punjab in jeopardy who are already devastated with dengue fever outbreak. There is twice or thrice 3-4 hour long continuous electric load shedding in major cities of Punjab averaging between 8-12 hours a day accompanied with intermittent hour long power shut downs during peak hours.
Due to the circular debt problem which, according to recent reports, is hovering around PKR400bn the power generation value chain has lost its ability to meet the electricity demand. Independent Power Producers (IPP”s) are producing below capacity as a result of working capital shortage caused due to outstanding amount of receivables from Pakistan Electric Power Company (PEPCO). It is a known fact that PEPCO faces difficulty in making recoveries from its subscribers particularly from Hyderabad, Quetta & Peshawar regions. Transmission and line losses add to the trouble.
Since IPP”s purchase furnace oil and diesel from Pakistan State Oil (PSO) – the state-owned oil marketing company to produce electricity, but due to shortage of working capital it has become exceedingly difficult for them to do so. PSO is also in limelight in connection with the inter-corporate circular debt as it either imports or procures furnace oil & diesel from domestic refineries to supply the same onward to IPP”s

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and other state-owned thermal electricity generation companies. Therefore, the problem of not making recoveries from many regions has translated into denial of the utility of electricity to those parts of the country where people borne the entire cost of availing with the facility of electricity from a supply chain predominantly owned by state enterprises.

This indicates primarily the extent of lack of governance in the country as media and other stakeholders in the power supply chain Members of the Clutch, Midi Mafia, Tricky Stewart, Usher, and a handful of other notable producers and songwriters grant a set of songs that isn’t quite top-level quality, but the singer more than gets by on his squeaky-clean charm and natural ability. have reminded the Government on numerous occasions to do something about the problem but so far the policy makers have been unsuccessful in devising a long-term solution to this problem. Electricity bills have increased almost three folds in recent times after the Government withdrawn subsidy on electricity on the instigation of International Monetary Fund (IMF) and also raised power tariffs to record high levels. At the same time power supply has been reduced to dismal levels. It would not be a matter of surprise if people came out on the streets and paved the way for another blow to the “sham democratic” Government

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the single factor of lack of electricity. People coming out on streets today is a sign for the authorities to wake up before it would be too late.

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  5 comments for “Pakistan: Worst Power Crisis

    October 3, 2011 at 12:13 pm

    Depressing aspect is that the fuel imported for power generation by state-owned electricity generation companies is not fully injected into the system. Pilferage of fuel is another problem not only in power sector value chain but also in Pakistan Railways – public enterprises and Government institutions.

    Shaikh M. Ali
    October 4, 2011 at 12:12 am

    The youngsters who started the successful ‘Save HEC – Save Pakistan’ protest on the Facebook are planning to have a meeting on this coming Saturday i.e. 8th Oct. 2011 on the power crises issue. They were able to bring over 3,000 people on the streets in KHI, LHE & ISB and over 100,000+ supporters on FB.

    October 4, 2011 at 12:56 am

    Good to know this Sir. Thanks for the insertion!

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