ELECTRICITY PAKISTAN 2025

ELECTRICITEIT PAKISTAN 2025
The "ELECTRICITY PAKISTAN 2025" exhibition, promoted by Pak Exhibitions, plays a crucial role in enhancing international visibility and industry engagement for Pakistan's energy sector. By actively marketing the event across Pakistan and globally, Pak Exhibitions connects local energy players with worldwide opportunities. This includes attracting foreign investment, facilitating technology transfer, and fostering collaborations that can lead to significant advancements in power generation, transmission, and distribution.

Producing Maximum Electricity for Pakistan's Industries and Exports

To produce maximum electricity that benefits both small and large-scale industries and promotes exports, Pakistan needs a multi-pronged approach focusing on diverse energy sources, infrastructure development, and policy reforms.

1. Diversifying the Energy Mix with a Focus on Indigenous and Renewable Resources:

Pakistan has significant untapped potential in renewable energy. As of March 2025, while fossil fuels still dominate the energy mix (55.7%), there's a clear move towards clean energy.

• Hydropower: With 11,368 MW installed capacity in March 2025, and an estimated untapped potential of 60,000 MW, hydropower is a cornerstone. Investing in new large and small/mini/micro hydro projects, especially in the northern regions, can provide a stable and affordable base load.
• Solar Energy: Pakistan receives abundant sunlight (average of 9.5 hours daily) and has an estimated potential of 40,000 MW. The "solar boom" due to cheap Chinese panels and tax exemptions is a positive sign. Promoting utility-scale solar farms, rooftop solar for industries and households (with effective net-metering policies), and solar-powered solutions for remote areas can rapidly increase generation.
• Wind Energy: The coastal belts of Sindh and Balochistan alone hold an exploitable potential of 50,000 MW. While currently producing around 1845 MW from wind, accelerating wind farm development can significantly contribute to the energy mix.
• Coal (Indigenous): While aiming for renewables, Pakistan also has vast indigenous coal reserves (e.g., Thar coal, 100,000 MW potential). Developing clean coal technologies (e.g., supercritical and ultra-supercritical power plants) with carbon capture where feasible can provide a domestic and relatively cheaper baseload, reducing reliance on imported fossil fuels, but this must be balanced with environmental considerations.
• Nuclear Energy: Expanding the existing nuclear power capacity, which currently stands at 3,620 MW, can offer a consistent and low-carbon energy source.

2. Modernizing Transmission and Distribution Infrastructure:

• Reduce Transmission & Distribution (T&D) Losses: Pakistan suffers from high T&D losses due to outdated infrastructure, power theft, and inefficiencies. Investing in smart grid technologies, upgrading transmission lines, and implementing robust anti-theft measures are crucial to ensure generated electricity reaches consumers efficiently.
• Smart Grid Innovations: Implementing smart grids can improve grid stability, optimize energy distribution, enable demand-side management, and integrate renewable energy sources more effectively.
• Privatization and Deregulation: Reforming the power sector by potentially deregulating power generation companies and increasing private sector involvement in distribution can lead to greater efficiency, reduced corruption, and better bill collection.

3. Policy and Regulatory Reforms:

• Long-Term Energy Policy: A consistent and predictable long-term energy policy is essential to attract both local and foreign investment. This includes clear targets for renewable energy, transparent tariff mechanisms, and streamlined approval processes for power projects.
• Competitive Tariffs: Reducing electricity tariffs for industries is paramount to enhance their competitiveness. Current high tariffs compared to regional competitors (e.g., India, Bangladesh) negatively impact exports. This could involve removing cross-subsidies, adopting cost-of-service based tariffs, and ensuring timely payments to power producers to avoid circular debt.
• Investment Incentives: Offering attractive incentives for local and foreign investors in the energy sector, particularly for renewable energy projects, can accelerate capacity addition.
• Addressing Circular Debt: The massive circular debt in Pakistan's power sector cripples the entire chain. Implementing a comprehensive plan to resolve this issue is vital for the financial health and sustainability of the energy sector.

Using Electricity to Promote Business and Exports

Reliable, affordable, and sustainable electricity is a fundamental enabler for industrial growth and export promotion.

• Enhanced Industrial Productivity: Consistent and cheap electricity allows small and large-scale industries to operate at full capacity without interruptions (load shedding). This increases production volumes, reduces downtime, and improves overall efficiency. Industries like textiles, manufacturing, steel, and cement, which are heavily reliant on consistent power, will see direct benefits.
• Reduced Production Costs: Lower electricity tariffs directly translate to reduced operational costs for businesses. This makes Pakistani products more price-competitive in the international market, boosting export volumes.
• Attracting Foreign Direct Investment (FDI): A stable and affordable energy supply is a key factor for foreign investors considering setting up manufacturing or processing units in Pakistan. It signals a reliable business environment, attracting capital and technology.
• Value-Added Exports: With reliable power, industries can move from exporting raw materials or semi-finished goods to producing higher value-added products. This commands better prices in international markets and contributes more significantly to the national GDP.
• Innovation and Modernization: Access to consistent power allows industries to invest in modern machinery, automation, and advanced manufacturing processes, which can improve product quality, meet international standards, and enhance export potential.
• Development of Energy-Intensive Industries: The availability of abundant and affordable electricity can enable the growth of energy-intensive industries (e.g., certain chemical productions, metallurgy) that might otherwise be unfeasible, opening new avenues for exports.
• Digitalization and IT Exports: Reliable electricity is crucial for the growth of the IT sector, data centers, and other digital services that have significant export potential.
• Regional Energy Trade: Pakistan's commitment to projects like CASA-1000, allowing for the export of surplus electricity to energy-deficient Central Asian states during winter months, is a direct way to leverage its power generation capacity for foreign exchange earnings and regional integration. The concept of "Reverse Power" trade holds promise.

In essence, a robust, diversified, and efficient electricity sector is not just about powering homes; it's a strategic national asset that underpins industrial competitiveness, attracts investment, fosters innovation, and ultimately drives export-led economic growth.