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Energy Report Pakistan April 2018

Energy Report Pakistan April 2018

  • April 2018
  • ID: 2114195
  • Format: PDF

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  • In recent years Pakistan has faced a serious gap between electricity generation and demand, leading to persistent power shortages and holding back economic growth.
  • According to the World Bank, around 44% of households are not connected to the grid and are instead obliged to use kerosene or candles for lighting and biomass for cooking.
  • Pakistan's energy consumption will grow at an average annual rate of 4.7% a year over the forecast period (2018-22). As a result, annual energy consumption will rise from 99m tonnes oil equivalent (toe) in 2017 to 124.5m toe in 2022. As a hydrocarbons importer, Pakistan will benefit from subdued global oil prices over the forecast period, thereby underpinning economic growth and curbing inflation.
  • In the near term the country will continue to suffer from a significant imbalance between energy demand and supply, owing partly to poor electricity production facilities and low domestic oil and gas reserves. Political instability, environmental concerns and weak infrastructure and investment will continue to undermine Pakistan's ability to exploit its substantial coal reserves. These stood at 3.1bn tonnes at end-2016, according to BP's Statistical Review of World Energy 2017.
  • The China-Pakistan Economic Corridor (CPEC) has significant potential to alleviate strains in the energy sector over the medium term. There are more than 15 priority energy projects under the CPEC, which are part of a so-called Early Harvest Programme (EHP). As some of these projects reach completion, they will provide a significant boost to the power sector's capacity.


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