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ENERGY CRISIS IN PAKISTAN

 

A very common question asked in Pakistan is about the most burning issue in Pakistan? The answer you will get may be a list of hundreds of issues which start from Kashmir and will end on terrorism or militancy etc etc.

Recently Mr. Mansha in an interview in CNN replied same question by giving a simple answer that water and energy are two most valid problems in Pakistan.

Energy is a most problematic issue in the world. Whereas oil prices are steadily rising and no stability is seen in near future. Demands of energy from the emerging markets like China and India growing day by day. Pakistan with official figurers of growth rate of 8% will have a definite rise in demand of energy for minimum 3%

In USA the Gulf of Mexico is famous for oil producing and refining facilities. The prosperity of Houston is only due to oil industry being flourished. However the weather is not so kind on this area and hurricanes and tornadoes commonly hit the southern part of USA and Caribbean.

Such is the volatility of fuel market now that just news of one hurricane developing in Caribbean shoots the oil prices in the world. A few years before oil was being traded on 20$ and no body ever thought that the weather conditions in the gulf can effect the oil market.

Politically the Iran situation is deteriorating day by day where as Iraq condition is not stabilizing. Oil today is being traded around 65 $/, and the most vital question now is what will happen if the prices rises to 75 $ or even one hundred $/barrel.

Pakistan with small manufacturing market, surrounded by major emerging economies like China, India, Malaysia, Indonesia, Philippines and Bangladesh will be worst effected with the rise of energy prices.

As a rule of thumb modern day manufacturing industries utilize at least 33% production cost in terms of energy prices. An increase of energy cost will effect their production cost and will force the manufacturers that either to reduce the labor cost or to remain competitive in market by improving the quality standards.

Major giants China and India will benefit with this condition and smaller economies will suffer badly.

Are our policy makers in Islamabad thinking for the gravity of problem which is now just standing on our door step?

On famous oil embargo days a lot of research in Europe was carried out to find the alternate source of energy. The findings are available even in college books. However with the drop of oil prices such alternatives were uneconomical and therefore shelved.

This is the time that Pakistan now asses very carefully that in case of oil prices rising to 75 $ what actions it should take to conserve energy and to find the alternate source of energy.

A volunteer option for all energy users is to conserve energy. To make the plants more efficient and to see that each drop of petrol is saved .If we make serious study on this subject then we may achieve up to 20% saving in energy ,hence saving in our production cost and making our products more attractive in international market.

Of course the energy conservation programs cost money. However the investment will be rewarding and will be beneficial in long terms.

Pakistan’s thermal units are day by day become aging, reducing their output power. With the rise of demand very soon we will see an acute shortage of energy and hence load shedding and shutting of the industrial units. This will seriously affect our competitiveness in the international market.

A liberal and progressive policy with less bureaucratic approach towards energy producing units will help and bring attractive investment in Power sector.

This is the responsibility of government to look for the alternate options for finding the energy resources. This investment can only be made by the federal government.

This is the time of survival. Only the countries which are prepared for the worst will have a prosperous future.

 

 

 

 

 

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Human being is the only creation of Almighty Allah who was endowed almost all types of Kinetic & Potential Energies.

By Mr. N.A.KHAN Write to Mr. Khan l nasirkhan54@gmail.com

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