PML (N), led by the former Prime Minister Nawaz Sharif has launched a countrywide movement for the removal of the present government. Among other reasons and the basis for the call to the masses to come on the streets, is the inability of the government to tide over the power crisis and eliminate persistent power outages that are badly affecting industry and the lives of the masses.
Since it is one of the major reasons for the initiation of an agitation against the government, it merits an objective appraisal of the factors leading to the power crisis and fixing the responsibility for this debilitating phenomenon so that people are in position to make their own judgement in the light of the verifiable facts.
According to a report compiled by the Asian Development Bank in 2006, for the purpose of seeking support and finances for power projects in Pakistan, in the early nineties, Pakistan faced a deficit of 1500 MW that caused forced shutdowns. The government embarked on a massive programme of structural reform and a significant change began in 1994 when a new power policy permitted the development of independent power producers (IPPs), selling electricity to both Wapda and KESC under the power purchasing agreements (PPAs).
The IPPs' contracting was overseen by the Private Power and Infrastructure Board (PPIB), which is an implementing agency for energy policy. The PPIB was set up in 1994 to provide a one-window facility to investors in the power sector. It negotiated, executed and administered agreements with IPPs and provided an interface between IPPs and the government. The IPP policy succeeded in attracting both foreign and local investors. Resultantly, the power-generating capacity outran the demand. Over 3,000 MW of private IPP capacity came on stream in 1997 alone.
The above development took place during Benazir Bhutto's second term as Prime Minister. Direct foreign investment to the tune of US $3 billion was made in the IPPs. There was a time when India was negotiating with Pakistan for the import of electricity. That makes it quite obvious that when she was removed, the country had surplus electricity. The next 12 years almost remained barren in regard to new projects of power generation, resulting in severe power shortages by 2007.
When the present PPP government assumed office in February 2008, the country was again faced with a shortfall of 3500 MW. It happened because Nawaz Sharif and General Musharraf did not pay required attention to this vital sector. General Musharraf, however, could boast of commissioning 300 MW Chashma-II nuclear power unit in 2005 with Chinese help that became operational in May 2011.
Nawaz Sharif did not initiate a single power project during his tenure and focused more on prestige projects like Motorway. He even started a process of witch-hunt against IPPs in the late nineties and scuttled the chances of future foreign investment in these projects.
Thus, a surplus in 1997 tuned into a deficit of 3500 MW by 2008 when the PPP was mandated to rule the country. These are verifiable facts and any citizen can have access to these realities by checking the official records. It is also an irrefutable reality that the present government who inherited this gigantic problem has been able to add another 3400 MW of electricity to the system and it has been stated on the floor of the National Assembly by the concerned minister. The persistence of the power outages can be ascribed to the gap between the ever-growing demand and the available generating capacity; the latter is always going to lag behind the demand due to the fact that adding now power-generating stations requires a time lag of at least 4 to 5 years.
The present government has also signed agreements with China for Chashma-3 and Chashma-4 units with a power-generating capacity of 340 MW each and the projects are scheduled to be completed in 2016 and 2017 respectively. Foundation stone for the construction of Bhasha-Diamir Dam contemplated to generate 4500 MW of electricity has already been laid. Work on Neelum-Jhelum Project (with power-generating potential of 969 MW) has already started and a half-kilometre long dam diversion tunnel has recently been completed in a record time of two years at a cost of Rs 492 billion to divert River Neelum.
The government has successfully pleaded in the court of arbitration for stopping India from diverting Neelum water as part of Kishanganga hydropower project being built in the Indian occupied Kashmir. Pakistan actually has outsmarted India on this issue by taking advantage of a clause in the Indus Basin Water Treaty that gives first priority to the use of the water by a party who completes a power-generating project first. Also, under the treaty, Pakistan has exclusive right on utilisation of the water of western rivers, ie, Indus, Jhelum and Chenab and their tributaries.
Plans are also on the anvil to exploit Thar coal reserves for generating electricity. Pak-Iran Gas pipeline project has also been set rolling that will add 4500 MW of electricity after completion. Chinese firms are presently working on 15 power generating projects in Gilgit-Baltistan and Azad Kashmir with a total power generating capacity of more than 10,000 MW.
As is evident from the foregoing, the present power crisis in the country is a sequel to the neglect of the previous regimes, including Nawaz Sharif and the present government is in no way responsible for this undesirable situation. Presently the IPPs introduced by the Benazir government are contributing more than 6000 MW to the entire system. The present government has added 3400 MW during the last three years and has also initiated mega projects in the energy sector to cater future energy needs of the country. True, the power shortage is hurting the people and industry, but the fact is that there is no quick fix to this sordid phenomenon. It requires time, resources and commitment.