Sunday, April 14, 2019
Pakistan Energy Outlook Essay Example for Free
Pakistan push Outlook EssayPrimary ability consumption in Pakistan has grown by almost 80% over the past 15 years, from 34 million tons oil equivalent (TOEs) in 1994/95 to 61 million TOEs in 2009/10 and has supported an average GDP growth appreciate in the country of about 4.5% per annum. However since 2006/07 energy supply has been unable to meet the countrys require leading to shortages. Meanwhile per capita energy consumption in Pakistan at under 0.5 TOEs/capita remains only third base of world average.Indigenous intrinsic bollix is the largest source of energy supply in Pakistan contributing 27. 7 million TOEs (45.4%) in 2009/10, fol embarrasseded by oil products, mainly imports, at 21.3 million TOEs (34.9%), hydel power at 7.5 million TOEs (12.3%), coal, mainly imports, at 3.7 million TOEs (6.1%) and nuclear power at 0.8 million TOEs (1.3%). Consumption of indigenous natural gas has grown rapidly in all arenas of the economy (residential, commercial, industrial, tra nsport and power) over the past 15 years, driven by growing availability of gas and a low, government-controlled gas price as compared with stick out fuel prices. As a result, Pakistan has set outed a vast natural gas transmission and dispersal network across the country.However Pakistans indigenous natural gas reserves are declining and a low gas price has become a significant disincentive in attracting new gas supplies, either through increased domestic exploration activities or via imports of liquefied natural gas (LNG) or regional gas pipeline imports. If current gas policies persist, Pakistans natural gas supply is evaluate to decline from 4 billion cubic feet per day (bcfd) in 2010/11 to less than 1 bcfd by 2025/26. This allow for lead to a growing gas/energy shortfall reaching 8 bcfd (over 50 million TOEs) by 2025/26 and will depress Pakistans average GDP growth rate over the next 15 years.It is also unlikely that Pakistan will be able to substantially develop its other indigenous energy sources of hydel power and coal by 2025/26 under current policies, and the energy import requirements of the country may grow from the present 30% to over 75% of the energy alloy by 2025/26 costing over $ 50 billion per annum in foreign exchange.The government-controlled power sector in Pakistan, one of the largest consumers of primary energy, is facing growing problems due to an unrealistic power tariff, high inefficiencies, low payment recovery and the inability of the government to manage its subsidies mechanism. This has led to a serious circular debt stretch forth which is becoming a barrier for future energy sector investments.This Pakistan Energy Outlook document identifies a set of energy Blueprints which, if implemented, could allow the energy sector in Pakistan to thrive and grow and become the engine for the social and economic development of the country, allowing accelerated GDP growth rates. As with all reform processes, the Blueprints will require significant political will to execute and it is hoped that the present and succeeding governments in Pakistan will rotate to the occasion.
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