Energy Policy of Pakistan



Introduction

The energy policy of Pakistan is formulated and determined by the federal, provincial, and local institutional entities in Pakistan, which address the issues of energy production, distribution, and consumption of energy, such as gas mileage and petroleum standards. Energy policy requires the proper legislation, international treaties, subsides and incentives to investment, guidelines for energy conversation, taxation and other public policy techniques.

Several mandates and proposals have been called over the years to overlook the energy conservation, such as neon signs were banned and the official weekend was extended from one to two days in an attempt to conserve electricity and reducing the electricity load used by industrial units by 25% during peak hours but no comprehensive long-term energy strategies were implemented. Since 1999, many legislative provisions were adopted for energy conversation including the seeking energy from various renewable energy sources. There is also an intense criticism about the unequal distribution of energy, the irresponsible usage of energy sources, and the country's new plan which is aimed to raise country's dependence on imported oil for power generation to 50% by 2030. After much public criticism, the long-term energy security policy was announced in 2013 through the introduction of equal cutting-edge energy transmission network, minimizing financial losses across the energy system and aligning the ministries involved in the energy sector as well as improving the governance of energy sources.

Pakistan is facing multiple challenges for harnessing the indigenous energy resources and devise rational energy policies. The country is believed to have abundant energy resources, however, coping substantial electricity supply gap of over 5000 MW. This paper analyses country’s energy and power planning studies conducted since its independence in 1947 and policies announced so far. It is found that water resources management attained more emphasis in early decades of post-independence rather than energy concerns. The first energy and power planning study was conducted in late 1960s and since then various studies were undertaken to supplement five yearly medium term development plans of government. However, it is pertinent to mention that formal energy and power policies were only announced from 1994 onwards owing to growing electricity demand and progressing industrialization. Beside this, the focus of these policies is not only varied but were conceived without undertaking integrated energy planning using energy modeling tools e.g. MARKAL/TIMES; LEAP, ENPEP BALANCE, MESSAGE and Energy PLAN. It is despite the fact that these tools are successfully applied globally for devising the energy policies and address the complexities of energy system by assisting effective policy formulation.

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