Govt ‘wastes’ Rs3.5tr yearly on energy imports

Pakistan incurs an estimated Rs3.5 trillion a year on energy imports that could be avoided, according to findings presented at a LUMS Energy Institute event reported by Dawn on November 6. Speakers attributed the waste to sector mismanagement, delays in applying building standards and the stalled effort to manufacture energy equipment domestically. The country also spends $2.7bn importing LNG for four winter months, even though much of its electricity generation capacity is idle.

The institute said power generation capacity is above 36,000MW, while the base electricity load stayed near 8,000MW from 2015 to 2023. Adoption of a 2023 energy-conservation building code remains pending in Punjab, Sindh and Balochistan, although the Capital Development Authority and Khyber Pakhtunkhwa have taken it up. Researchers estimated that improving efficiency in 25pc of homes could cut peak demand by about 3,000MW and save Rs442.6bn annually; they also identified Rs1.1 trillion in domestic manufacturing opportunities for transmission and distribution equipment.