Solution to the power crisis


The electricity crisis in Pakistan is a severe challenge. It has severely affected the economy and overall standards of living. Extended duration of loadshedding has not only adversely resulted in the closure of a number of industrial units, but is also negatively impacting the country’s economy, hence increasing unemployment.

The situation is turning ugly and protests are being held throughout the city against unannounced loadshedding and power breakdowns. The increasing frustration among the masses regarding the power failures calls for immediate measures to overcome this crisis.

Due to the circular debt problem which, according to recent reports, is hovering around PKR 400 billion, the power generation value chain has lost its ability to meet the electricity demand. The Independent Power Producers (IPPs) are producing below capacity as a result of working capital shortage.

Therefore, the only option available with the government of Pakistan is to utilise rental power plants (RPPs). The IPPs requires 3-5 years for the completion whereas the RPPs require 6-8 months implementation period.

Right now it has become an essential need and has been installed by many countries to meet their electricity requirements. RPPs are one of the solutions that the government can implement in order to fulfil the shortage of 16000 MW. Since the government of Pakistan has signed contracts for RPPs, the same can be used to revive our industries.