Pakistan’s energy crisis has indeed been a significant obstacle to its economic growth and industrialization. To address this issue and promote economic development, it is crucial for the government to craft robust and comprehensive short, medium, and long-term energy strategies. Dr Afia Malik, an energy expert and senior research economist at the Pakistan Institute of Development Economic (PIDE), said this while talking to WealthPK. “Pakistan's energy deficit has been a longstanding issue, causing power shortages, hampering industrial growth, and affecting the quality of life for its citizens. Additionally, the country is highly susceptible to climate change impacts, including extreme weather events and water scarcity, which have disrupted energy generation and supply,” she said.

“To hedge against this vulnerability, Pakistan should work to reduce its increasing reliance on imported fuels. Though the country has strived to cope with power shortages, it still needs reforms. This could be done in a number of ways, including switching towards indigenous energy sources by fully exploiting the considerable hydropower potential and speeding up the development of local coal reserves,” said the energy expert.

“In accordance with Vision 2025, the project of integrated energy planning (IEP) under the Planning Commission is a significant step towards addressing the country's energy challenges comprehensively and efficiently. It involves the coordinated development of policies and strategies that encompass various aspects of the energy sector, from energy generation and distribution to consumption and sustainability. “IEP is an effective and appropriate tool for realizing the government’s vision of developing a sustainable, cost-efficient energy sector that best meets the country’s strategic and socio-economic needs and rapidly growing demand for energy,” she added.

In addition, she pointed out that there have been challenges in implementing IEP projects in Pakistan. While the concept and intentions are commendable, the translation of policies into concrete actions has sometimes been hindered by issues such as bureaucratic hurdles, lack of coordination among the government agencies, and financial constraints. “To fully realize the potential benefits of IEP, Pakistan must overcome these implementation barriers through effective governance, improved project management, and continued commitment to its energy objectives,” she suggested. Deputy Chairman of Planning Commission Jehanzeb Khan says it is their role in general and IEP in particular to make an inclusive and growth-centred energy policymaking. Highlighting the significance of sustainable development goals (SDGs), Dr Khan called for revaluation of Pakistan’s approach to energy planning in line with SDG 7-affordable and clean energy.

He stressed the need to examine the fuels used in Pakistani households, considering affordability and sustainability. According to the caretaker minister Sami Saeed, the outcomes of Low Emission Analysis Platform (LEAP) model by the IEP would help achieve high industrial growth, export-led economic base and save the foreign exchange reserves. According to WealthPK research, LEAP model is an effort to present a holistic integrated initial approach to energy demand and supply analysis, containing all components of integrated balances used in computing long-term energy prices under various scenarios.

Credit: Independent News Pakistan (INP)