For many people, aware of the man’s growing dependence on fuel
as a source of energy, had to change their view points in 1973. When
OPEC (Oil and Petroleum Exporting Countries) halted their supply of oil,
though commonly it is known as “Oil shock”, but it helped coining a new
phrase called “Energy Crisis”.
It was after this energy crisis that people of the world began to look
up for an alternate source of Energy. In order to fulfil their needs, besides
the commonly known factors of energy production.
Thus energy, defined as an “ability to do work” can turn into energy
crisis “whence there is no ability to do work”.
HOW ENERGY IS DERIVED?
There are several natural elements by dint of which energy is
derived. These elements can be numbered such as (1) coal (2) oil (3) gas.
These natural resources are put up to obtain other forms of energy, for
example electricity. WHAT KIND OF ENERGY CRISIS HAS SURFACED IN
PAKISTAN?
Pakistan is suffering from acute shortage of electricity. Frequent
load shedding, a rapid increase in the price per unit of electricity, and
political deadlocks have turned this situation into a nightmare for a
common man.
PRESENT STATE OF CONDITION.
The current demand of electricity is around 14000 mega watts
(MW), whereas the supply is 11,546 MW. (till March 1994).
There is a profound difference between the present demand and
supply. With demand increasing 12 percent per annum, the government
resources are added to pool up only 7 percent increase in the production of
electricity.
This difference in demand and supply is gigantic in nature, with
population growth rate of 3.2 percent per annum, It would take more than
an effort to keep up with the demand.
What results out of this increased demand and low supply according
to the laws of Economics, is an increase in price. The current price per
unit of electricity is Rs. 1.25, which in itself is quite devastating with an
inflation rate of 11 percent and low income generating capacity of most of
the population. It hit them like a thunder bolt because a common man
usually uses 300 to 400 units, at least.
There are possibilities that Government would raise the price per
unit from Rs.-1.25 to Rs. 1.75. As it has been proposed, reason being
deficit financing, external debts, low amount of revenue and pressure from
the international loaning agencies like IMF (International Monetary Fund)
and the IBRD (International Bank for Reconstruction and Development).
The prevalent situation is not only depressing but nerve breaking.
HOW CAN THE GAP BE FILLED.
The gap is wide enough to be filled within days. It will take years,
provided if there are no stalemates like political instability and co-
operation among the elected representatives and other high ups. If this
situation exists it is going to take ages before we can even dream up of a
twenty four hour electricity facility (and dreams don’t come easy). WHERE DOES THE FAULT LIES.
are :-
Among the causes, which have led to this situation of Energy crisis
1. Lack of long term planning.
2. Corruption among the officials of Water and Power
Development Authority (WAPDA).
3. Political instability and deadlocks.
4. Theft of electricity by the officers in-charge.
5. Lack of proper monitoring of the concerned department by the
Government.
6. Unfaithful to the cause of preserving the energy.
Corruption is the foremost element, nepotism and red tapism is an
established fact of the authority concerned. Apart from this, revenue is
being transferred in the pockets of officials instead of adding up to the
national exchequer.
Political instability and deadlocks are another example of why we
don’t come out of this vicious circle. The concerned authority has
forwarded many proposals for the further generation of electricity so as to
meet the requirements, yet due to this instability factor, Government has
been unable to take concrete steps, living example of political deadlock is
the famous Kalabagh Dam. It is expected that Kalabagh Dam would
produce 2400 mw electricity with enhancing capacity to 3600 mw though
it is going to cost staggering amount but still this dam is a solution to
many problems. If it had been constructed, there would have been no
load-shedding at all, considering the fact that it is not a panacea.
by the officials and their unfaithfulness to the cause of utilizing minimum
Another major cause of this energy crisis is the theft of electricity
amount of electricity.
An ironical example is that, though, government has embarked on
massive advertisements to save energy on the electronic media, carrying
the message in one way or the other but, take a round of the city and one
would find that the street lights are on, twenty four hour a day. There is
no one to switch them off in the morning and do vice versa in the evening. All these problems need immediate attention by the Government.
WHAT STEPS JAVE BEEN TAKEN BY THE GOVERNMENT
Though these problems are deep rooted and are ever present, these
issues have been put up with every Government, though steps were taken
to the extent of paper work, no concrete steps were taken to solve this
painful living phenomenon.
As a result government has taken several steps to ensure that the
capacity to generate electricity meet with the requirement.
A massive privatization and deregulation policy has gone underway,
Not only this government has embarked on massive energy producing
project? Example are:-
1. 420 MW thermal power station at Jamshooro.
2. 120 MW thermal station is being built by Saigol group near
Lahore.
3. Another 120 MW thermal station is to be set-up at Kabir Wala
by a Private group.
In total there are some nine (9) projects approved by the government
to meet the requirements excluding Kalabagh Dam but including an
agreement with a central Asian Republic Tajikistan, to sell Pakistan 1000
MW electricity, though it has not yet materialized due to some political
reasons, yet it is expected that the deal would wrap up within this year.
Apart from purchasing it from foreign countries, the Government
has also under taken a research to buy electricity from the local generators
and the research has declared that the government can purchase at least
200 MW of surplus energy from the local producers.
Besides these projects which are yet to materialize, Govt. has also
undertaken two major projects one at Ghazi Brotha with a capacity of
1425 MW hydel electricity and the other of Huls, a thermal project with
expected capacity of 1292 MW. Both these projects have been undertaken
with the help of private investors.
WHAT IS THE PRIVATIZATION POLICY?
Privatization is a buzz word around the Government circles and the
last year Economic Survey (1993-94) suggests that privatization is remedy
of all ills. GOVERNMENT POLICY,
The governments policy is to introduce private investment in the
energy sector as well. Though it is not going to be a complete
transformation of Water and Power Development Authority to the private
investor instead government has decided to take this privatization in
different phases. It has further decided to privatize only thermal power
stations to the private sector.
The policy had been initiated by the erstwhile Prime Minister of the
country Mr. Nawaz Sharif. It was decided to privatize two thermal station
of 880 MW in the first phase, namely.
(1) Jam Shooro Thermal Station.
(2) Faisalabad Thermal Station.
But the present government has also decided to add the thermal
station of Kot Addu in this list. In addition government wishes to transfer
Karachi Electric Supply Corporation (KESC) into the private sector,
though 25 percent of shares are already with the private investors but
government had decided to put up 26 percent further shares in the hand of
private investors.
PROBLEMS ATTACHED WITH THE PRIVATIZATION.
There are several problems attached with this deregulation process.
First of all there are chances that there is going to be an increase in
the price. There is only one markup on the WAPDA’s bill but once
WAPDA is going to purchase, the vendor will keep a markup, similarly
WAPDA will keep a markup and thirdly the distributor will attach the
string of markup. These three markups might result in a drastic increase in
the price per unit.
Secondly there are several loans, both external and internal attached
to these stations. If government keep the responsibility of these loans, it
would again go into a disadvantage, thirdly some Provinces are raising hue
and cry over this privatization policy since WAPDA is their major source
of revenue (NWFP get 84% of its budget from WAPDA’s revenue)
With all these issues there is also a string attached to the employees,
WAPDA currently holds 160,000 employees. It is the biggest civilian
organization. WOULD PRIVATIZATION BE ANY SOLUTION.
The question is whether privatization be any solution to the existing
energy crisis. The answer is yes, with a lots of ifs and buts.
The government is determined to follow the path of Privatization
and deregulate most of its organization WAPDA was established in 1958
by a Presidential Ordinance. So far the only major change made, is the
increase in the number of members from four to seven, again, by a
Presidential Ordinance 1994.
WAPDA, though it has attached a lot of criticism, has proved to be
an effective authority. It has generated Rs. 1.43 billion with self-financing
scheme, apart from this self-financing scheme, Rs. 1.60 billions from
billing and had utilized these in serving the nation.
Privatizing this sector would create certain anomalies like low profit
generation by the private companies, who are already bent upon to give
lesser and lesser amount to the national exchequer in the form of taxes.
Yet the government is strongly committed to solve this energy crisis
for bringing economic and political stability in the country. And one way
to ensure this is to privatize the public sector, like, it has been done in the
rest of the world.
AN ENCOURAGING NOTE IN THE END.
Privatization of Energy sector has also resulted in alteration of
Foreign investment in Pakistan. The recent visit of the President of
Pakistan to the United States of America and France has shown positive
signs towards the Foreign investment. It is expected that this present
Energy crisis would meet its ultimate fate, provided, there remain political
stability and government is able to implement its policies properly.
Conclusion:-
It is nonetheless expected that energy crisis, though a crucial issues,
has attracted too much attention from the public and government alike.
Further it is vital enough to realize that the road to prosperity lies with
having an efficient energy sector at the disposal of the Government,
otherwise the development process will always be hampered now and
then. Though political stability is also vital but if the economic condition is
smooth and reflective of prosperity then politics would itself acquire its
stable position. The developing country like Pakistan should not only work on the
natural resources like oil, coal and gas to fulfil its requirements, but it
should also take advantage of the latest scientific research and discoveries.
As we understand the “solar energy” is also manifested with the same
destiny. Pakistan Government could encourage private investors to invest
in these form of energies.
For which we won’t be paying any charges Missing Nuclear
Power.
– Western countries utilizes Nuclear energy as a major source
of energy.
– Especially in France, almost 80% of the energy is produced
by Nuclear reactor.
– But there is political problem attached to Pakistan it would
require a conscious approach unless we have complete
technical know how.
– Pakistan did contracted with France, but International politics
turned against Pakistan because of their nuclear programme.