Pakistan Prepares For Summer Energy Shortage Shut-downs

Posted on 18. Mar, 2009 by Ross in Asia, Energy Shortages

Pakistan’s power generation shortfall is set to hit 5,000MW this summer, with the consequential load-shedding set to leave homes and businesses without electricity for 10-12 hours per day. A massive economic growth spurt in 2004 was not matched by adequate growth in energy supplies, stifling further expansion and leaving businesses to count the cost of factory shut-downs.

Pakistan has a wealth of untapped energy resources from massive rivers to huge unexploited coal fields, but the government has no funds for investing in infrastructure projects and is currently dependant upon a 7.6 billion dollar credit line from the International Monetary Fund. Turbulent political upheaval and terrorism also plague the government agenda, paralysing the decision-makers and leaving the ordinary citizens in the dark. Promises to act have failed to be realised, adding to the social unrest and total lack of public faith in the political class.

Industry has been severely affected by the energy shortage, which has been as large as 3,000MW pre-summer. Industrial output dropped by over 6% during the height of the previous summer, with the textile industry - the country’s biggest exporter - the worst hit. Production quotas were continually missed, damaging sales and reputations and lead to a raft of textile companies going under.

Individuals and businesses, aware of the inability of the government to solve the problem, are now taking matters into their own hands. Sales of generators and UPS (uninterruptible power supply) systems have rocketed as people try to keep their jobs and homes running under their own energy. Efficiency drives also help to keep businesses afloat: investing in low risk, high return energy-saving technology is a great way of enhancing the investment in in-house power generation. Aware of the need for action, Pakistan’s people are taking a stand for their nation’s economic future.