Initiatives for energy sector.

Byline: S. KAMAL HAYDER KAZMI

No doubt, energy sector plays a major role in the economic development of a country. The recent decades witnessed a manifold rise in the demand for energy. As per the economic survey of Pakistan, the three principal drivers of increase in energy demand are the surge in economic activities, population growth and rapid technological transformation globally. The surge in commodity prices in 2021 and during the initial months of 2022 mainly lifted by the global economic rebound, enhanced growth prospects and conflict between Russia and Ukraine. According to the International Energy Agency (IEA), the economic recovery from the Covid-19 pandemic, combined with unusual weather conditions led to a sudden jump in electricity demand by more than 6 percent in FY2021. The Cost of fuel and electricity has improved cost of overall production; consequently higher prices have substantially grown cost of living which further eroded the purchasing power of households in the Globe. Furthermore, the government of Pakistan (GoP) has proclaimed dissimilar strategies to ensure the smooth supply of energy to the general public and to increase economic growth.

These strategies include "The National Power Policy 2013", "The Power Generation Policy 2015" and "Alternative and Renewable Energy Policy 2019". The National Power Policy 2013 aimed to develop an efficient and consumer-centric power generation, transmission and distribution system that could meet the needs of the people and boost the economy of Pakistan in a sustainable and affordable manner. The Chief targets included complete elimination of load shedding, declining the average cost of electricity generation, fall in the transmission and distribution losses, rise in the revenue collection and a reduction in the time required for decision making at the ministry level or other related departments. According to the government of Pakistan officials, in 2015, government launched "Power Generation Policy 2015" to facilitate private investment in the power sector.

The Policy offered incentives to the private sector to organize new power generation projects also invest in public sector power generation projects in dissimilar phases of development. The main focus of power generation policy 2015 was to have sufficient least cost power generation capacity in Pakistan, prioritizing utilization of indigenous resources, facilitating all stakeholders involved in the transaction and...