In a recently issued report, the International Monetary Fund (IMF) states that in the next ten years, Pakistan’s electricity consumption will increase by 78 percent. To bridge the demand and supply difference, Pakistan needs an investment of $24.5 billion to meet the energy needs of the growing population.

The report holistically reviews the energy sector of Pakistan and its loopholes, which are hampering the sustainability of the sector with a huge over Rs. 2 trillion circular debt. The report says that in the past few years, Pakistan’s generation capacity has increased significantly, but the transmission constraints are very much there, and it has to be addressed with more funds allocations for transmission and distribution and reduction of the losses. Production capacity has increased significantly in the past, but no attention has been paid to the transmission and distribution network.

As per the report, in the last five years, Pakistan’s power generation capacity has increased by 12,347 MW and its capacity has increased from 23,663 MW to more than 36,000 MW. However, due to neglect in transmission and distribution, losses in the power sector reached 20 percent. According to the IMF, Pakistan’s electricity consumption will increase by 78 percent in the next ten years. To meet the power needs, $24.5 billion will have to be invested in this sector by 2030.

According to the report, 56 percent of the population of Baluchistan, 6 percent of Khyber Pakhtunkhwa, and 5 percent of Sindh are without electricity due to the non-availability of grid electricity. The report says that the entire population of Punjab, Azad Jammu & Kashmir, and Gilgit-Baltistan has access to electricity. IMF recommends spending of funds equivalent to 0.7 percent of GDP per annum, to be spent by 2030, to provide electricity to all parts of the country. It is estimated that an investment of at least Rs. 1,352 billion is required in the next three years.

According to the report, the use of electricity over generation capacity in the country averages 43 percent. The previous regime managed to increase power generation through thermal, hydropower plants, and alternative energy resources. The current government is working on various projects, including hydro, nuclear and alternative energy.

Source: Pro Pakistani