Pakistan Wastes Rs3.5 Trillion Annually on Energy Imports, Experts Warn

ISLAMABAD: Pakistan is incurring an annual loss of Rs3.5 trillion—over three times the federal development budget—due to mismanagement and rising energy-sector imports, according to experts at a recent event on ‘Pakistan’s Energy Security’ organized by the LUMS Energy Institute (LEI).

Key figures in the energy sector, including National Grid Pakistan Chairman Dr Fiaz Chaudhry and Independent System and Market Operator CEO Dr Masood Ahmad, highlighted that despite a generation capacity exceeding 36,000MW, the country’s base electricity load has stagnated at around 8,000MW since 2015. Dr Chaudhry emphasized that this stagnation, particularly during the winter months, indicates a troubling trend for the nation’s energy landscape, stating, “This means we are getting poorer as a nation.” He pointed out that much of the additional capacity has been allocated for cooling buildings that remain underutilized, leading to increased capacity payments and a growing circular debt.

The implications of this energy mismanagement are profound, affecting not only the economy but also the daily lives of citizens. As energy imports continue to rise, the financial burden on the government escalates, diverting funds from essential development projects and exacerbating the country’s fiscal challenges.

Looking ahead, stakeholders are calling for urgent reforms, including the adoption of building codes and the implementation of an indigenisation plan for energy materials and equipment. Upcoming discussions among policymakers and industry leaders are expected to address these critical issues to enhance Pakistan’s energy security.