With the onset of summer, Pakistan faces an escalating energy crisis as electricity demand surges, outpacing supply across the country.
The National Power Control Centre (NPCC) reported that electricity demand has surged to a staggering 25,500 megawatts, while the total production stands at 20,200MW, resulting in a significant shortfall of over 5,000MW. This shortfall has led to an increase in load shedding, exacerbating the plight of both urban and rural areas.
In rural regions, load shedding has extended to over eight hours, while urban areas face four to six hours of power outages. Moreover, maintenance-related load shedding further burdens urban residents with additional six-hour blackouts. Areas plagued by high losses and theft are experiencing load shedding of up to 12 to 16 hours.
The twin cities of Islamabad and Rawalpindi are also experiencing four to six hours of load shedding in the name of maintenance.
NPCC sources say that despite efforts to augment power generation, the energy deficit persists. Currently, 6,200MW of electricity are generated from hydropower sources, with 2,200MW from Tarbela Dam alone, they added. Additionally, Tarbela-4 is contributing 1,100MW of electricity, 1,200MW from Ghazi Barotha, and 950MW from Mangla Dam, the sources said, adding that 750MW are being generated from other small hydropower sources.
Moreover, government thermal power plants contribute 1,100MW, while independent power producers (IPPs) contribute 8,250MW. Nuclear power plants generate 3,540MW, with wind, solar, and biomass contributing 820, 203, and 145 megawatts, respectively.
The Power Division refuted claims of announced load shedding but acknowledged that areas with high losses or theft and low recovery rates were experiencing power outages.
Circular debt balloons
However, despite these production efforts, the energy sector's financial woes continue to deepen. The sector's circular debt has soared to a staggering $17.5 billion from Rs4,800 billion, with the electricity sector alone accumulating Rs2,794 billion in debt.
This represents a significant increase of Rs484 billion compared to the previous year. The escalating debt burden, despite monthly and quarterly adjustments, threatens to impede the sector's operations and exacerbate Pakistan's economic challenges.
The circular debt has to be maintained at Rs2,310 billion by June. The documents state that the circular debt of the petroleum and gas sector is Rs2,084 billion.
The division emphasized the need for comprehensive reforms to address systemic inefficiencies and reduce the mounting debt burden.
As the energy sector grapples with these challenges, urgent interventions are imperative to stabilize power supply, mitigate load shedding, and alleviate the financial strain on the economy. Failure to address these issues promptly could have far-reaching implications for Pakistan's socio-economic development and wellbeing.
