The Energy Crisis in Pakistan: Socio-Economic Implications and the Way Forward
Pakistan has been trapped by a blend of problems such as political chaos, economic turmoil, social unrest, religious extremism, rampant corruption, unemployment, pervasive poverty, child labor, moral degeneration, etc. The energy crisis has added fuel to the fire; it has created many more socio-economic issues for the whole nation. This research study has highlighted the impact of the energy crisis in Pakistan, particularly on its society and economy. It has been enunciated that the energy crisis has deteriorated the social setup in Pakistan as it has disturbed domestic routines, institutional schedules, health facilities, the transportation system, and educational procedures. Similarly, the crisis has pushed Pakistan into an economic decline. Most of the local and foreign investors have migrated to other states due to the non-availability of electricity, gas, and petroleum products. Consequently, Pakistan is experiencing the lowest ebb of foreign direct investment (FDI). Unannounced load-shedding has not only discouraged the industrialists but also decreased the ratio of production, a severe setback to the rate of exports. The non-availability of energy has decreased the ratio of agricultural productivity, which has a significant share in the gross domestic product (GDP) of Pakistan. The cottage industry has also fallen victim to the energy crisis. In this way, there is a restrained flow of foreign capital into the country. In the end, the study has recommended some policies that can be formulated and practiced by both the government and the public to address the energy crisis.
Today, energy has become one of the most significant needs of man. Dwelling, trade, agriculture, industry, transport, and even every other range of human activity revolve around energy. In return, energy has played a crucial role in to overcome fundamental socio-economic issues including poverty, disease, hunger, illiteracy, and environmental degradation. In short, energy is the backbone of all human activities. Its demand has increased with the evolution of civilizations, particularly due to a dramatic increase in population, modernization, and urbanisation. Electricity is worth mentioning here as an important form of energy in modern times that has revolutionised the world. It has helped man settle his social and economic problems quite easily. Man is trying to make the right use of available natural resources to boost his status while preserving the environment.
The Way Forward:
A change of attitude and a change of lifestyle are needed at the national level, which could be triggered by the ruling elite and followed by all segments of society that have access to electricity. The government should take initiatives to avoid the crisis, and the public should obey the rules and laws to adopt austerity measures defined by the government. The selection and practise of the following remedies can be fruitful in approaching that mutual goal.
(1)
Pakistan should assure its presence in the South Asian region as an active and cooperative neighbour. It should build cordial relations with India, China, Iran, and Afghanistan. First, it should indulge in peace deals with India and then show an inclination to exchange energy materials. China’s "road and belt" initiative should be utilised positively to get maximum capabilities regarding energy. Pakistan should revise its relations with the United States regarding the ‘peace pipeline’ and security in
Afghanistan. The revision of foreign policy will lead Pakistan to access fossil fuels from Iran, Afghanistan, and even Central Asian states.
(2)
Political stability within a state is the major solution to all forms of crises. Therefore, there is a dire need to ensure political stability in Pakistan. There must be no concept of a blame game that gives birth to institutional clashes. When state institutions are in a war-like situation, they cannot pay attention to resolving national issues. So, a politically stable Pakistan can easily overcome the energy crisis.
(3)
Pakistan is rich in oil, gas, and coal; therefore, a special budget should be allocated to the energy sector to build an infrastructure for the exploration of these minerals. A huge amount is charged every year by foreign companies during the process of exploration. An effective policy in the annual budget can be supportive of our infrastructure to explore and discover almost 33 trillion tonnes of oil and gas reserves in Pakistan. Similarly, 175 billion tonnes of coal reserves in Thar can be extracted to maximise the performance of the energy sector.
(4) The government should work more urgently to get rid of the menace of militancy, which will reduce the number of blasts of gas pipelines and other energy resources. The dialogue with the terrorist factions can be the best diplomatic tool to save the larger resources of energy.
(5) The government should exempt customs duty on the imports of solar panels and related equipment like inverters, batteries, photovoltaic dules, and solar lanterns. The
Equipment can be beneficial for controlling the energy crisis, especially in the summer, when the national demand for energy jumps to around 18 GW of electricity.
(6) Pakistan should go for alternative, renewable, and cheaper sources of energy. 35 percent of hydropower production should replace 62 percent of thermal power. The number of solar and wind power plants should be increased to generate power at cheaper rates. Biogas plants should be encouraged in rural areas to produce energy at a minor level.
(7) The government should build research centres at the regional level with the specific aim of conducting research on the issues of energy production and management. The researchers should be encouraged to complete their research projects on time, and they should be awarded prizes in cases of success.
(8) The prices of the energy raw materials should be changed according to the conditions prevailing regarding demand and supply.
(9) Undoubtedly, the construction of more dams in Pakistan can be an important factor behind the increased production of energy. But, not to speak of new dams, the already constructed ones are not maintained properly. If the dams were maintained, Pakistan could avoid the floods of 2010 and 2022, which could help store water for energy-generating purposes. Therefore, there must be a focus on the construction of new dams but the older ones should not be ignored. Along with power plants, transmission lines, and other key infrastructure, they should not fall into serious disrepair.
(10) There should be a check and balance in the energy sector so as not to repeat cases like Raja Rental. A separate investigation bureau should be established only to deal with corrupt officers in that particular sector. In addition to that, there should be a heavy fine for the power theft, which mostly results in line losses.
(11) There should be an end to the luxurious lifestyle among the elite and the privileged classes. The extra use of energy resources in transportation and routine life should be minimised. Additionally, in private and government offices, a timetable should be set for the use of air conditioners (ACs), and the officials should consider if one or two ACs can fulfil the requirements of the office and if the extra ones should be switched off.
(12) The media should play an active role in creating awareness among the public and should arrange different programmes through concerned TV channels to inculcate a sense of austerity measures. The "Save Energy" campaign should be the top priority of the media to create awareness among the masses.
(13) An equal distribution of energy resources among all the provinces can work to get rid of the crisis. The National Finance Commission award should be designed in such a way that none of the provinces has reservations about the specific distribution.
(14) Lessons can be learned from other countries to get rid of the energy crisis. Pakistan is not the only country facing the energy crisis; many other countries are also under the same menace. Most of the victim countries, like Kazakhstan, have manipulated the crisis. So, Pakistan should explore the strategies of Kazakhstan through which it has succeeded and adopt them to handle the crisis.
(15) The closure of academic institutions, markets, and marriage halls until 8 p.m. can be supportive for keeping balance during peak hours.
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