Electricity Sector in Pakistan

Electricity Sector In Pakistan

Electricity in Pakistan is generated, transmitted, distributed and retail supplied by two vertically integrated public sector utilities: Water and Power Development Authority (WAPDA) for all of Pakistan (except Karachi), and the Karachi Electric Supply Corporation (KESC) for the city of Karachi and its surrounding areas. There are around 20 independent power producers that contribute significantly in electricity generation in Pakistan.

For years, the matter of balancing Pakistan's supply against the demand for electricity has remained a largely unresolved matter. Pakistan faces a significant challenge in revamping its network responsible for the supply of electricity. Pakistan's electricity producers are now seeking a parity in returns for both domestic and foreign investors which indicates it to be one of the key unresolved issues in overseeing a surge in electricity generation when the country faces growing shortages.

As of 2013 massive long-standing electricity shortages continued with long-standing failure to provide reliable service and rampant corruption being met by public protests, unauthorized connections, and refusal by consumers to pay for intermittent service. Electricity generation in Pakistan has shrunk by up to 50% in recent years due to an over-reliance on fossil fuels. In 2008, availability of power in Pakistan falls short of the population's needs by 15% Pakistan was hit by its worst power crisis in 2007 when production fell by 6000 Megawatts and massive blackouts followed suit. Load Shedding and power blackouts have become severe in Pakistan in recent years. The main problem with Pakistan's poor power generation is rising political instability, together with rising demands for power and lack of efficiency. Provincial and federal agencies, who are the largest consumers, often do not pay their bills. China, India, Central Asia, and Iran have been offering to export electricity to Pakistan at subsidized rates but the government of Pakistan has not yet responded to the offers for unknown reasons.