Developing a competent energy market

Pakistan has been grappling with severe and persistent energy challenges for decades. These challenges have been further exacerbated by the country’s severe economic difficulties, creating a pressing need for immediate reforms. Yet, no significant change can be expected if the sector continues to be governed in a similar manner, that is, centralised decision-making at the Power Division. If professionals are not allowed to manage at the decentralised level, all power sector issues will remain and grow. Furthermore, if political compulsions are not kept away from the energy sector, it will not be possible to solve energy problems. In Pakistan, the absence of a market for energy and the government’s sole authority over future projects have led to misguided decisions over the years. Over 40 per cent of energy generation relies on imported fuels, exacerbating the country’s energy problems, leaving it vulnerable to international fuel price fluctuations and currency devaluation.