POWER SCENARIO STILL BLEAK IN PAKISTAN – OPED

By Muhammad Waqas

When Sharif’s government came into power last year, it prioritized all efforts to overcome Pakistan’s nagging energy crisis.

The worsening problem of power outages across Pakistan, lasting up to 18 hours in some regions, had crippled the economy and dampened manufacturing output, leading to industrial shutdowns and massive layoffs. Amid much fanfare, the government launched several new power initiatives that promised to pull out the country from shadows of darkness and revive economic growth. Some of these major initiatives included the Thar Coal and Dasu hydel power projects, and Bhasha dam. These projects were envisioned to increase the country’s power generation capacity in coming years and reduce its reliance on expensive, imported furnace oil for power generation.

However, recent media reports suggest that some of these projects are in a limbo. It has been reported that the commissioning of multi-purpose Diamer Bhasha dam has been delayed by about 17 years and it will now be completed in 2037. The project has been postponed as the relevant authorities failed to arrange required financing for its construction. Instead, a decision has been made to focus all efforts on early completion of Dasu hydel power project.

Given the imminent threat of acute water shortage and floods faced by Pakistan, the government’s decision may come as a big surprise.

The Diamer Bhasha dam held strategic importance as it could have alleviated the country’s energy woes, while also averting floods and a famine-like situation due to water crisis. As a result of this delay, Pakistan may struggle to feed a rapidly-growing population, projected to touch about 260 million people by 2037. The country is already facing an acute level of ‘physical water scarcity’ and its mainly agriculture-based economy could face stunted growth in the coming years. It is feared that the project delay could prove to be a strategic mistake and pose an existential threat to Pakistan.

The Nandipur Power Plant is another sorry tale of corruption and starting projects only to gain political mileage. At the time of inauguration, Sharif had launched a scathing attack on the ex-government for putting the project on backburner and termed its delay an “unforgivable sin”. Ironically, the project was shut down only after operating for five days and generating electricity at a record high cost. According to power regulatory authorities, the project did not meet technical and legal requirements for smooth operations and its premature launch was intended merely for political point scoring. Other recently launched projects such as the Guddu Thermal Power Station and a 1320MW coal-fired plant also suffer from gross mismanagement and not being fully utilized for power generation.

Before the government signs further agreements to setup new power projects, it is advisable that focus is shifted to enforcing stricter controls and improving management of existing resources. In case the government fails to properly manage these projects, the country will continue to suffer from long spells of power outages and fail to turnaround its economy. The government should realize that any aggravation of the existing power crisis may put its authority and the country itself in a precarious situation.