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Because of poor energy management, Pakistan’s energy resources have been used inefficiently for decades.
Pakistan’s stubborn reliance on fossil fuels continued even after the oil shocks of 19.
The misguided energy mix also exacerbates the nation’s already serious environmental problems, which manifests itself in poor air quality and unsafe drinking water.
This acute energy crisis is a result of flawed energy policies pursued for decades, the high cost of generation, and aging and inadequate transmission, among other causes. A high reliance on thermal power plants (which in turn are run by natural gas, oil, or coal) and hydropower seldom assure a continuous flow of power.
In addition to transmission losses and distribution thefts, an entrenched bureaucratic culture marked by poor organization, planning, and project implementation among Pakistan’s power operating companies only compounds the problem. Heavy dependence on oil-based energy makes power high-priced.
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In a developing country like Pakistan, a reliable, uninterrupted, and affordable energy supply is a fundamental precondition for reducing poverty, encouraging investment, and boosting economic growth.
The prevailing energy crisis is costly to the economy in the form of huge subsidies and high circular debts.
Politicians and policymakers in Pakistan have made little real attempt to diversify the nation’s energy supplies and to shift dependence form expensive and imported oil toward potentially cheaper and cleaner resources available in the country (Pakistan’s dependence on oil imports is 24 percent, compared to India’s 18 percent and Bangladesh’s 21 percent).
There has been an enormous increase in the demand of energy as a result of industrial development and population growth, in comparison to enhancement in energy production.
Supply of energy is, therefore, far less than the actual demand, resultantly crisis has emerged.