Electricity sector in Pakistan

Electricity in Pakistan is generated, transmitted and distributed by two vertically integrated public sector companies, first one being Water and Power Development Authority (WAPDA) responsible for the production of hydroelectricity and its supply to the consumers by electricity distribution companies (DISCOS) under the Pakistan Electric Power Company (PEPCO) being the other integrated company. Currently, there are 12 distribution companies and a National Transmission And Dispatch Company (NTDC) which are all in the public sector except Karachi Electric in the city of Karachi and its surrounding areas. There are around 42 independent power producers (IPPs) that contribute significantly in electricity generation in Pakistan.

As of 2016 on average, more than 80% of Pakistan's population had access to electricity.

Following 2022 dearth of imported LNG in Pakistan, the country indicated it would quadruple its coal power plants, which use domestic coal. The inevitable outcome has occurred: the swift depreciation of the rupee has diminished business confidence. The frequent increases in electricity, gas, petrol, and diesel prices are also substantial contributors, driving inflation and consequently decreasing industrial production.

History

Pakistan's electricity sector is a developing market. For years, the matter of balancing the country's supply against the demand for electricity had remained a largely unresolved matter. The country faced significant challenges in revamping its network responsible for the supply of electricity. Electricity generators were seeking a parity in returns for both domestic and foreign investors indicating it to be one of the key issues in overseeing a surge in electricity generation when the country was facing growing shortages. Other problems included lack of efficiency, rising demands for energy, and political instability. Provincial and federal agencies, who are the largest consumers, often do not pay their bills. At one point electricity generation had shrunk by up to 50% due to an over-reliance on fossil fuels. The country 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 had become severe in Pakistan before 2016.

Mr. Naqeeb and Mr. Mohsin said Economic Survey 2020–21 unfolds that Pakistan's installed capacity to generate electricity has surged up to 37,261 MW by July 2020 which stood at 22,812 MW in June 2013, showing the growth of 64 per cent.

Installed capacity

According to the Pakistan Economic Survey 2023–24, the installed electricity generation capacity reached 42,131 MW in March 2024.For FY2024 , total electricity generation stood at 92,091 GWh against a demand of 68,559 GWh for the same period The electricity transmission network, currently, has the capacity to handle more than 53,000 MVA.

The National Transmission & Despatch Company (NTDC) in Pakistan has finished construction on a double-circuit transmission line, which extends for 29 km from Polan to Gwadar. This new infrastructure has been built in compliance with directives from the Prime Minister and the Federal Minister for Energy. The addition of this transmission line will allow for the import of an additional 100 MW of power from Iran, which will result in increased power reliability and decreased frequency of power outages for the residents of Gwadar and the Makran division.

Electricity generation

Installed capacity by source in the utility sector FY2021 to 2022

<imagemap> File:Circle frame.svg|260px poly 100 100 200 100 199 99 199 97 199 95 199 93 199 91 199 89 199 87 198 85 198 83 198 81 197 79 197 77 196 75 196 73 195 71 194 69 194 67 193 65 192 63 192 62 191 60 190 58 189 56 188 54 187 53 186 51 185 49 184 47 183 46 182 44 181 42 180 41 178 39 177 38 176 36 175 35 173 33 172 32 171 30 169 29 168 27 166 26 165 25 163 23 162 22 160 21 158 20 157 19 155 17 154 16 152 15 150 14 148 13 147 12 145 11 143 10 141 10 139 9 138 8 136 7 134 7 132 6 130 5 128 5 126 4 124 4 122 3 120 3 118 2 116 2 115 2 113 1 111 1 109 1 107 1 105 1 103 1 101 1 99 1 97 1 95 1 93 1 91 1 89 1 87 1 85 2 83 2 81 2 79 3 77 3 75 4 73 4 71 5 69 5 67 6 65 7 63 7 62 8 60 9 58 10 56 10 56 11 100 100 Natural Gas: 13,423 MW (32.2%) poly 100 100 56 11 54 12 52 12 50 13 49 14 47 15 45 17 43 18 42 19 40 20 39 21 37 22 36 24 34 25 32 26 31 28 30 29 28 30 27 32 25 33 24 35 23 36 22 38 20 39 19 41 18 43 17 44 16 46 15 48 14 49 13 51 12 53 11 55 10 56 9 58 8 60 7 62 6 64 6 66 5 68 4 69 4 71 3 73 3 75 2 77 2 79 100 100 Furnace Oil: 5,943 MW (14.3%) poly 100 100 2 79 1 81 1 83 1 85 0 87 0 89 0 91 0 93 0 95 0 97 0 99 0 101 0 103 0 105 0 107 0 109 0 111 0 113 0 114 1 116 1 118 2 120 2 122 2 124 3 126 3 128 4 130 5 132 5 134 6 136 7 138 7 139 8 141 9 143 10 145 11 147 12 148 13 150 14 152 15 154 16 155 16 156 100 100 Coal: 5,319 MW (12.8%) poly 100 100 16 156 17 157 18 159 19 160 21 162 22 164 23 165 25 167 26 168 27 170 29 171 30 172 31 174 33 175 34 176 36 178 38 179 39 180 41 181 42 183 44 184 46 185 47 186 49 187 51 188 53 189 54 190 56 191 58 191 60 192 62 193 64 194 65 195 67 195 69 196 71 196 73 197 75 197 77 198 79 198 81 199 83 199 85 199 87 200 89 200 91 200 93 200 95 200 97 200 99 200 101 200 103 200 105 200 107 200 109 200 111 200 113 200 115 199 117 199 119 199 121 198 123 198 124 197 126 197 128 196 130 196 132 195 134 194 136 194 138 193 140 192 141 191 143 190 145 190 147 189 149 188 150 187 152 186 153 185 100 100 List of hydroelectric power stations in Pakistan poly 100 100 153 185 154 184 156 183 158 182 159 181 161 179 162 178 164 177 165 176 167 174 168 173 170 172 171 170 173 169 174 167 175 166 177 164 178 163 179 161 180 159 181 158 183 156 184 154 185 153 186 151 187 149 188 148 189 146 189 145 100 100 Nuclear RE: 3,657 MW (8.8%) poly 100 100 189 145 190 143 191 141 192 139 192 137 193 136 194 134 194 132 195 130 196 128 196 126 197 124 197 122 198 120 198 118 198 116 198 116 100 100 Nuclear power in Pakistan poly 100 100 198 116 199 114 199 112 199 110 199 108 199 106 199 106 100 100 Solar: 668 MW (1.6%) poly 100 100 199 106 199 104 199 102 200 101 100 100 Other: 374 MW (0.9%) desc none </imagemap>

•   Natural Gas: 13,423 MW (32.2%)
•   Furnace Oil: 5,943 MW (14.3%)
•   Coal: 5,319 MW (12.8%)
•   Hydro: 10,264 MW (24.6%)
•   Nuclear RE: 3,657 MW (8.8%)
•   Wind: 1,995 MW (4.8%)
•   Solar: 668 MW (1.6%)
•   Other: 374 MW (0.9%)

Electricity – Total installed capacity (FY2021–22): 41,557MW

Breakdown of Installed Generation Capacity as on FY 2021/2022

Source	Installed Capacity (MW)	% of Share in Total
Fossil Fuels (Total)	24,688	59.4%
Natural Gas	13,423	32.3%
Furnace Oil	5,943	14.3%
Coal	5,319	12.9%
Non-Fossil Fuels (Total)	16,872	40.6%
Hydro	10,264	24.7%
Nuclear	3,657	8.8%
Wind	1,995	4.8%
Solar	0,667	1.4%
Bagasse	0,374	0.9%
Total Installed Capacity	41,557	100%

Electricity consumption

• Electricity – total consumption: 89,361 GWh (2021–2022)
• Electricity – consumption by sector (2021–2022):
  • Household – 47%
  • Commercial – 7%
  • Industrial – 28%
  • Agricultural – 9%
  • Others – 8%

Governance and sector reform

Recent reforms include the unbundling and corporatization of the Water and Power Development Authority (WAPDA) into 10 regional distribution companies, 4 government-owned thermal power generation companies and a transmission company, the National Transmission and Despatch Company. The hydropower plants were retained by WAPDA as WAPDA Hydroelectric. All are fully owned by the government. K-Electric Limited (formally known as Karachi Electric Supply Company), which is responsible for power generation and distribution in the Karachi area, is listed on the stock exchanges and is privately owned. Privately owned independent power producers generated 53% of the country's power in FY2016.

In 2019, Alternative and Renewable Energy policy was introduced to promote renewable energy in the country and reduce carbon footprint and greenhouse gas emissions. The policy aims to increase share of green energy to 20% by 2025 and 30% by 2030. As of 2022, only 3% of energy sources in Pakistan are renewables.

Effects of natural and man-made disasters

During 2010 Pakistan floods and 2005 Kashmir earthquake power stations, power distribution and transmission and other energy infrastructures were damaged. During the floods and rainfalls the recently constructed Jinnah hydroelectric power plant was flooded in addition to severe damages to transmission and distribution network and installations while several power plants and refineries were threatened by rising waters and had to be shut down. Natural gas field output had to be reduced as the flood waters approached the wells. There has also been some concern by Pakistani nuclear activists over the effect of natural disasters on nuclear plants specially over the Chashma Nuclear Power Plant, since the plant lies over a geological fault. Due to over reliance of Pakistan on dams for electricity generation, some environmental impacts of dams such as submergence of usable/ecological land and their negative impact on Pakistan's mangrove forests due to loss of river silt load, as well as increased risk of severe floods have become evident.

See also

• List of power stations in Pakistan
• List of electricity distribution companies of Pakistan
• Water & Power Development Authority
• Economy of Pakistan
• Pakistan Electric Power Company
• Alternative Energy Development Board
• National Electric Power Regulatory Authority
• Karachi Electric Supply Company
• Pakistan national energy policy
• Private Power and Infrastructure Board (PPIB)

Further reading

• Robert M. Hathaway, editor, and Michael Kugelman, editor, Powering Pakistan, Oxford University Press, USA (15 January 2010), hardcover, 216 pages ISBN 978-0195476262