Explained: After political upheaval, why Pakistan is facing an energy crisis

Is Pakistan going the Sri Lanka way?

After the island country reported 13-hour-long power cuts , owing to shortage of fuel, it is now Pakistan who is reporting major electricity cuts to households and industries. The cash-strapped country can no longer afford to buy coal or natural gas from overseas to fuel its power plants.

Miftah Ismail, who has been named finance minister by new Prime Minister Shehbaz Sharif, has said in a tweet that almost 7,100 megawatts of electrical capacity had been shut down owing to fuel shortages as of 13 April.

We take a closer look at what has happened in Pakistan and try to analyse the reason behind the power shortage. Plunged into darkness

Islamabad has a power generation capacity of about 35,000 megawatt of energy. Of this, hydel power plants generate 1,000 MW, private sector power plants produce 12,000 MW while thermal power plants generate 2,500 MW.

The Dawn reported on 15 April that the ministry of energy had informed Shehbaz Sharif that nine major power plants with a generation capacity of 3,535 MW were not working because of fuel shortages. They include four plants that remain closed due to LNG shortage, two due to furnace oil shortage, one for lower coal inventories and another due to the expiry of a gas supply agreement.

Additionally, 18 other plants were not available for a long time due to technical faults and the lack of repair and maintenance.

Some of the power plants which are closed include the Nandi Power Plant, with a capacity of generating 525 MW, the Muzzafargarh Power Plant having the capacity of producing 840 MW, and others alike.

This had led to a severe shortage of power, forcing power distribution companies to carry out hours-long interruptions of electricity supply in urban and rural areas across the country.

The National Electric Power Regulatory Authority (NEPRA) has increased power tariffs; citizens will now have to pay an additional cost of Pakistan Rupees 4.8 per unit for the electricity they consumed since February, according to The Express Tribune.

The Ukraine-Russia war has led to skyrocketing of fuel prices, making it difficult for Pakistan to buy fuel that could help its power plants operate with efficiency.

Pakistan’s long-term LNG suppliers cancelled several shipments scheduled for delivery over the last few months, further tightening supplies. ‘Gross mismanagement and incompetence’

Commenting on the situation, Prime Minister Shehbaz Sharif blamed the Pakistan Tehreek-i-Insaf (PTI) government for the ongoing energy crisis in the country and said that the load shedding across the country is due to the “mismanagement and incompetence of the previous government”.

Speaking at the National Assembly, Pakistan’s prime minister said, “The load shedding in the country is due to gross mismanagement and incompetence of the previous government,” Dawn newspaper reported.

Sharif alleged that the PTI-led government did not purchase LNG when the price was just $3 per unit and now the price surged and stood at around $30-35 per unit.

Adding to Pakistan’s woes

The energy crisis is adding to the woes of Pakistan . Islamabad is struggling with a broken and bankrupt economy, experiencing unprecedented levels of inflation, soaring prices of petrol and crippling debt.

On 15 April, it was reported that prices of petrol and diesel may go up by Pakistani Rs 83.5 and Rs 119 per litre respectively.

Also, data revealed that as of 1 April 2022, the foreign exchange reserve was only $1,131.92 million — a lowest since June 2020.

With inputs from agencies

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