Research Analyst
June 14 - 20, 2010

Pakistan's economy is growing at a very steady rate and this growth demands energy and thus is putting a huge pressure over country's limited energy recourses. Oil, natural gas and hydro are the three primary energy resources of the country which are being exploited for fulfilling energy demands of the economy.

Pakistan's energy consumption being an integral part of all the economic activities has declined as a result of the economic slowdown. During 2009-10, energy sector issues and developments continued to severely impede economic growth.


In Pakistan, primary energy supply and per capita availability of energy witnessed a decline of 0.64 per cent and 3.09 per cent respectively during July-March 2009-10 over the same period last year. This decrease in the primary energy supply and per capita availability during the first nine months of the current fiscal year is higher than its fall in the full year of 2008-09 when primary energy supply and per capita availability narrowed down by 0.58 per cent and 2.27 per cent respectively.


During July-March 2009-10, production of crude oil has increased by 2.9 per cent from northern region whereas productions decreased in southern region by 5.2 per cent. The balance recoverable reserves of crude oil in the country as on January 1st 2010 have been estimated at 303.63 million barrels. The average crude oil production during July-March 2009-10 was 65,246 barrels per day as against 66,531 barrels per day during the corresponding period of last year, showing a decrease of 1.9 per cent.


The petroleum products' energy supplies during July-March 2009-10 increased to 16.3 million tones from 14.2 million tonnes in same period last year thereby witnessing a 14.6 per cent growth during the period. The overall consumption of petroleum products exhibited an increase of 8.1 per cent during July-March 2009-10 against the same period last year. The power, industry and transport sectors consumed the high quantity of petroleum products during the period under consideration. Improvement of domestic demand led the increase in the consumption of petroleum products by transport and industry.


Electricity generation from the hydro and thermal source has witnessed an increase of 5.6 per cent growth during the current fiscal year July-March 2009-10 compared to 5 per cent decline in July-March 2008-09. Moreover, after growing negatively since 2007-08, the electricity generation has started to grow positively during current fiscal year 2009-10. The composition of electricity generation suggests the stagnation in shares of hydro and thermal sources in the electricity generation with share of thermal remained larger than that of the hydro source. The overall electricity consumption has followed a declining trend since 2008-09. Overall electricity consumption in the country has witnessed a negative growth of 1.7 per cent during July-March 2009-10 over the same period last year.


During the period July-March 2009-10, Nepra has processed ten applications for the grant of generation licenses, including thermal and hydel power plants with a cumulative capacity of 311.4 MW. In addition to these thermal and hydel power projects, cases/applications of five wind energy projects with a cumulative capacity of 200 MW for grant of generation licenses were also processed. However, the installed capacity of Pepco system is 18,233 MW as of March 2010 with hydro 6,555 MW and thermal 11,678 MW. The hydropower capacity accounts for 35.95 per cent and thermal 64.05 per cent. Out of 11,678 MW of thermal power, 4,844 MW is owned by Gencos, 135 MW by rental, 325 by PAEC and rest by IPPs. There is 55 MW of isolated generation capacity in Pasni & Panjgoor areas.


TONNES (000) CHANGE (%) (MMCFD) CHANGE (%) (GWH) CHANGE (%) M.T* (000) CHANGE (%)
Avg 10 years - 0.5 - 6.8 - 5.0 - 12.5
08-09 12,892 - 931,700 - 55,614 - 4,822 -
09-10 (e) 13,937 8.1 959,475 3.0 54,653 -1.7 5,304 10.0
e: Electricity consumption for AJ&K is estimated on the basis of actual six months data, *Million Tonnes


Energy is the lifeline of a nation. The economic engine and the wheels of industry, agriculture and business need energy to move forward. On the social aspect, energy consumption per capita is a key indicator of the quality of life of the citizens and community. Currently, Pakistan has coal resources estimated at over 185 billion tonnes, including 175 billion tonnes identified at Thar coalfields in Sindh province. The government should use these Thar coalfields to control and overcome energy crisis in the country.