The diagnosis of an electricity crisis and alternative energy development in Pakistan

The electricity sector in Pakistan is currently facing the formidable challenges of an insufficient installed capacity, a suboptimal infrastructure, circular debt and revenue shortage. All of these problems hamper socioeconomic activities. This paper diagnoses the overall condition of the electricity sector as well as the potential and recent progress in the implementation of alternative energy projects in the context of the targets set in the National Energy Security Plan (NESP). The assessment reveals the unsatisfactory overall progress of the implementation of the NESP in general and alternative energy in particular. We assess that if the short-term measures contained in the NESP have been adequately executed, were enough to bridge the existing electricity supply-demand gap and the country might not be facing an ongoing electricity crisis. Further, we investigated the specific alternative energy policy issues that hinder this sector’s development in Pakistan. We conclude that fuel diversification by means of the maximum utilisation of alternative energy resources would help in solving the crisis and would also furnish the long-term energy needs of the country. Finally, we recommend a comprehensive strategy for revamping the electricity sector and developing the alternative energy resources needed to tackle the ongoing electricity crisis in Pakistan.