An Empirical Analysis of Private Energy Sector in Pakistan - Problems and Prospects

By Khan, Nasiruddin | Economic Review, January 1995 | Go to article overview

An Empirical Analysis of Private Energy Sector in Pakistan - Problems and Prospects


Khan, Nasiruddin, Economic Review


Pakistan has been vigorously pursuing the policy of encouraging Private Sector Investment in Energy Sector for accelerating the pace of industrialization. In 1985, the Government of Pakistan embarked on an aggressive programme to encourage Private Investment in the Power Sector through the development of Power Projects. Pakistan was the first country in South Asia to embark on an Ambitious Plan.

Power Generation-economic and Social Development

Economic and social development of a country is characterised and correlated with multifarious factors. The developing countries have achieved rapid industrialization and advancement through energy intensive large scale production techniques which provide economies in sale of operation/production and yield maximum results. In Pakistan too, the operations in Large Scale and Medium Size (Capital and Intermediary Goods Industries) were through intensive use of energy which yielded maximum/accelerated growth in production particularly in manufacturing sector.

Institutions Dealing Private Power Projects

The institutions responsible and dealing exclusively with the Private Power Projects include:

* PPIB - Private Power and Infrastructure Board Ministry of Water and Power.

* WPPO - WAPDA Power Privatization Organization.

* Private Energy Division of National Development Organization.

The PPIB is responsible for promoting, evaluating and negotiating private investments in the Electric Power Sector. It also reviews Feasibility Studies and Implementation Time Tables.

WPPO of WAPDA is responsible for negotiating and finalizing the Power Purchase Agreement between WPPO and Private Power Companies. It reviews and negotiates all Tariff Agreements.

The Private Energy Division of NDFC looks after and control Private Sector Energy Development Fund (PSEDF). The fund which is designed for Private Power Projects is operated by NDFC and supported by the World Bank.

Present Installed Capacity: Presently the total installed capacity in the country is 11,346 MW out of which 54 per cent is Thermal and remaining 46 per cent Hydel. This capacity is insufficient to meet the demand.

Demand Growth Rate

In most of the developing countries, the demand for electricity is growing at 7 per cent per year. In Bangladesh, the electricity demand has been growing on an annual rate of over 11 per cent, in India over 10 per cent and in Pakistan over 12 per cent.

Plans to Increase the Power Generation Capacity

The Government plans to increase the Power Generation Capacity to 22,000 MW by the year 2,000.

Per Capita Consumption of Electricity

The per capita consumption of electricity in various South East
Asian countries is as follows:

                         (KWH)

Pakistan                   392
China                      550
Thailand                   825
Malaysia                  1373
Korea                     2761
Singapore                 5207
Hong Kong                 4823

Salient Features of Existing Power Policy

The Government of Pakistan formulated a Policy Framework and Package of Incentives for Private Sector Power Generation Projects in Pakistan in March 1994. This policy presents and deals with procedures for Application and Processing of Proposals. Tariff for Bulk Purchase of Power at Bus Bar, Financial Arrangements, Fiscal Incentives, Security Package namely Implementation Agreement, Power Purchase Agreement and Fuel Supply Agreement. The Government has provided Tariff of US Cents 6.5/KWH. In addition a premium of US Cents 0.25/KWH will also be provided to the projects above 100 MW, which are commissioned under this scheme by end 1997.

Brief Description of Major Private Power Generation Projects

Hub Power Project: HUBCO is a company set up to undertake the design, construction, finance, ownership and operation of a 1,292 MW Oil Fired Power Plant. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

An Empirical Analysis of Private Energy Sector in Pakistan - Problems and Prospects
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.