Energy Crisis of Pakistan
By Alam Rind
Pakistan is facing the worst energy crisis of its history, the crisis that has the potential to totally cripple its economy. Magnitude of the problem can be gauged from the fact that Pakistan
is facing shortage of electricity and gas while about 40% of its households have not yet received electricity and only 18% have access to gas supply. Meeting existing demand and that of the developmental sector will require manifold increase in the production or availability of the two
products. If we look at the global statistics there is a strong correlation between energy availability and level of nation's development. The nations topping the list of human
development are also the largest per capita consumers of energy. The world average per capita
energy use is about 650 million BTUs while American consume 352 million BTUs, Malaysia 104
million BTUs, China 56.2 million BTUs, India 15.9 million BTUs and Pakistan is trailing at 14.2
million BTUs. These figures clearly exhibit that the availability of energy acts as locomotive for
development that is critically important to pull Pakistan out of quagmire created by terrorism and
fundamentalism. It is an established fact that these tendencies bread in an environment infested
by poverty and lack of education.
is facing shortage of electricity and gas while about 40% of its households have not yet received electricity and only 18% have access to gas supply. Meeting existing demand and that of the developmental sector will require manifold increase in the production or availability of the two
products. If we look at the global statistics there is a strong correlation between energy availability and level of nation's development. The nations topping the list of human
development are also the largest per capita consumers of energy. The world average per capita
energy use is about 650 million BTUs while American consume 352 million BTUs, Malaysia 104
million BTUs, China 56.2 million BTUs, India 15.9 million BTUs and Pakistan is trailing at 14.2
million BTUs. These figures clearly exhibit that the availability of energy acts as locomotive for
development that is critically important to pull Pakistan out of quagmire created by terrorism and
fundamentalism. It is an established fact that these tendencies bread in an environment infested
by poverty and lack of education.
One of the most appropriate steps that can be initiated to help Pakistan wriggle out of the fold of extremism is to initiate developmental and economic activities in the country. Multifarious steps would be required to kick start economic activities. These should include foreign direct investment, granting preferential trade status, helping the country to meet her energy needs and supporting law-enforcing agencies to be able to combat the menace of terrorism and extremism. Conventionally, Pakistanis' have been looking towards global powers
to come and resolve their problems. It is that the present politically elected government took the
courage to conclude gas pipeline deals with Iran and a deal to install nuclear reactors at Chashma
with China inspite of odds to meet present and future energy needs of the country. The irony is
that the objection is coming from the quarter that recognizes Pakistan as a non-NATO ally, a
frontline state in GWOT and an indispensable ally if America is to succeed in Afghanistan. In the backdrop of additional sanctions that are being clamped on Iran due to her nuclear program, US Special Envoy to Afghanistan and Pakistan Richard Holbrooke initially remarked that, "US has nothing to do with Pakistan-Iran gas pipeline" but had to retract his words suggesting that Pakistan should wait for the upcoming legislation, Under total American influence Prime Minister Yousuf Razu Gilani has declared that Pakistan wil! abide bv the US sanctions on Iran, which may jeopardize Iran-Pakistan gas pipeline project. The project costing about $7.6 billion
has the ability to affect a turnaround in Pakistan's economy.
to come and resolve their problems. It is that the present politically elected government took the
courage to conclude gas pipeline deals with Iran and a deal to install nuclear reactors at Chashma
with China inspite of odds to meet present and future energy needs of the country. The irony is
that the objection is coming from the quarter that recognizes Pakistan as a non-NATO ally, a
frontline state in GWOT and an indispensable ally if America is to succeed in Afghanistan. In the backdrop of additional sanctions that are being clamped on Iran due to her nuclear program, US Special Envoy to Afghanistan and Pakistan Richard Holbrooke initially remarked that, "US has nothing to do with Pakistan-Iran gas pipeline" but had to retract his words suggesting that Pakistan should wait for the upcoming legislation, Under total American influence Prime Minister Yousuf Razu Gilani has declared that Pakistan wil! abide bv the US sanctions on Iran, which may jeopardize Iran-Pakistan gas pipeline project. The project costing about $7.6 billion
has the ability to affect a turnaround in Pakistan's economy.
Recently Pakistan and China have concluded a deal for installation of two nuclear reactors
at Chashma i.e. C3 and C4. The deal for installation of nuclear reactors for power generation at
Chashma was inked back in 1991. The first reactor started operation in 2000. Construction work
on the second reactor started in 2005 and is likely to complete by 2011. The proposed Chashma 3 & 4 will have a power generation capacity of 650 MW, which will substantially contribute
towards bridging power generation and consumption gap. Chinese viewpoint is absolutely clear
as stated by their Foreign Ministry spokesperson, "The cooperation is subject to safeguards and
the supervision of the International Atomic Energy Agency (IAEA). It is in compliance with
respective international obligations of the two countries". The present deal is an extension of the
general agreement that was concluded far before 2004 when China joined Nuclear Suppliers
Group (NSG), therefore, the same doesn't fall under its purview. Present Pakistan-China nuclear
deal is not in conflict with international law even then USA may block the deal by possibly
raising the issue at next NSG conference.
On the other
hand US has concluded civil nuclear deal with India, a non-signatory of NPT and facilitated
exemptions from IAEA and NSG. These double standards can really hurt Pak-US relations and
even turn the opinion of moderate segment of society against them.
at Chashma i.e. C3 and C4. The deal for installation of nuclear reactors for power generation at
Chashma was inked back in 1991. The first reactor started operation in 2000. Construction work
on the second reactor started in 2005 and is likely to complete by 2011. The proposed Chashma 3 & 4 will have a power generation capacity of 650 MW, which will substantially contribute
towards bridging power generation and consumption gap. Chinese viewpoint is absolutely clear
as stated by their Foreign Ministry spokesperson, "The cooperation is subject to safeguards and
the supervision of the International Atomic Energy Agency (IAEA). It is in compliance with
respective international obligations of the two countries". The present deal is an extension of the
general agreement that was concluded far before 2004 when China joined Nuclear Suppliers
Group (NSG), therefore, the same doesn't fall under its purview. Present Pakistan-China nuclear
deal is not in conflict with international law even then USA may block the deal by possibly
raising the issue at next NSG conference.
On the other
hand US has concluded civil nuclear deal with India, a non-signatory of NPT and facilitated
exemptions from IAEA and NSG. These double standards can really hurt Pak-US relations and
even turn the opinion of moderate segment of society against them.
A common Pakistani aspires for peace and economic development as anyone else.
Availability of cheap and abundant energy holds key to it. It will be highly demoralizing to find
that America is blocking installation of nuclear reactors in Pakistan and is throwing spanners in
Pakistan-Iran gas pipeline project. It will render sacrifices made by the people and armed forces
of Pakistan meaningless and an average Pakistani will be constrained to rethink their relations
with USA. To top all this Pakistan is not being provided with the attack and transport helicopters
needed for operations in North Waziristan, notwithstanding this Afghan Armed Forces are being
bought Russian helicopters facilitating India to have greater say in Afghanistan. There are reports that India will have role in Afghan military affairs that will be highly detrimental for Pakistan. Events are in mismatch with words, Is Pakistan-US strategic dialogue a lip service?
that America is blocking installation of nuclear reactors in Pakistan and is throwing spanners in
Pakistan-Iran gas pipeline project. It will render sacrifices made by the people and armed forces
of Pakistan meaningless and an average Pakistani will be constrained to rethink their relations
with USA. To top all this Pakistan is not being provided with the attack and transport helicopters
needed for operations in North Waziristan, notwithstanding this Afghan Armed Forces are being
bought Russian helicopters facilitating India to have greater say in Afghanistan. There are reports that India will have role in Afghan military affairs that will be highly detrimental for Pakistan. Events are in mismatch with words, Is Pakistan-US strategic dialogue a lip service?