Power Crisis Deepens in Pakistan Amid Middle East Turmoil

New Delhi, April 3 — Pakistan is experiencing a worsening energy crisis, with local media reporting that LNG supplies are expected to drop to nearly zero next month, significantly affecting overall electricity production. A report published in Karachi's Business Recorder indicates that the LNG shortage could impact over 20 percent of total electricity generation, while pressure on coal supplies may affect around 30 percent.

To address the situation, the government is forced to rely on furnace oil, which significantly increases electricity production costs. Generating electricity from furnace oil is more expensive compared to gas and coal. The report states that the government plans to implement daily load shedding of 2 to 3 hours, increase electricity rates, and promote energy conservation, although the success of these measures will depend on their effective implementation.

Experts suggest that simple measures like closing markets early and restricting high-energy lighting have proven effective in the past but have not been prioritized in the current strategy, potentially placing a greater burden on the public and industries. The report also highlights domestic mismanagement as a major cause of the crisis. A dispute between Pakistan Railways and coal-based power plants has put 1500 to 1800 megawatts of electricity production at risk.

Obstacles in coal transportation, delays in wagon loading, and lack of coordination have further exacerbated the situation. This not only raises the likelihood of additional load shedding but also increases reliance on expensive fuel. Meanwhile, Pakistan Railways may also suffer losses in freight revenue.

The report concludes that while the current crisis may have originated from external factors, its severity will largely depend on domestic policies and decisions. If demand management and supply systems are not improved, the cost of every crisis will continue to rise.