Electrical Energy: Prime Engine for National Development

By Jeelani, Vaqar A. | Economic Review, May 1996 | Go to article overview

Electrical Energy: Prime Engine for National Development


Jeelani, Vaqar A., Economic Review


In order to support the power development programme of the country for the Eighth Plan (1993-1998), a minimum estimated amount of Rs.102 billion in foreign currency and Rs.16 billion in local currency would have to be raised in private sector.

Shortage of electrical power is one of the most crucial issues facing Pakistan today. Supply has been unable to keep pace with the growing demand, with the result that consumers have been subjected to forced power cuts or load-shedding on a routine basis. Electrical energy, is the prime engine for national development.

Without it all efforts for fast-track industrial development economic progress cannot be made. The government is giving top priority to power and energy sector. The government constituted a Task Force on Energy in October 1993 to eliminate the menace of load-shedding and to devise a consolidated and comprehensive policy for revamping and rejuvenating the energy sector.

This commitment was translated into reality when on 25th September 1994, 16 agreements were signed with US firms involving an investment of US$4 billion, whose representatives had come to Pakistan as members of a high-powered 100-member American businessmen delegation led by US Energy Secretary. Ms Hazel O'Leary. A total of 16 power plants with a total capacity of 3,500 megawatts will be set up by 1997.

In addition to those earlier successful efforts when the largest private investment in Asia, in the shape of HUBCO in Balochistan, with a total capacity of 1,292 MW, was successfully signed, the financial package and the project is expected to go into commercial operation in July 1996.

On October 6, 1994 Hong Kong-based industrialist, Mr. Gordon Wu, signed a memorandum of understanding (MoU) with the Governments of Pakistan. Sindh and the PPIB for a comprehensive package for the construction of 5,280 MW coal-fired power plant with an investment of US$5.5 billion near Karachi with additional investment of US$2 billion being made in the transmission network. The construction is scheduled to start next month.

The plant would have eight units of 660 MW each. The first one is expected to come on line by December, 1997 or early 1998. This will be the single largest investment from Mr. Gordon Wu. Farewell to load-shedding is the battle cry raised by the Government. More than mere hollow rhetoric the government has embarked whole-heartedly in its crusade to rid the country of the existing chronic power shortage.

In Prime Minister's own words electric power is the necessary oxygen for the very survival of Pakistan. To combat this problem the Government has launched a massive programme in the private sector to generate power which will totally eliminate load-shedding, leading Pakistan to a prosperous future in the 21st century.

Because of the poor shortage, the country is facing total loss of Rs.900 million per year in duties besides colossal losses in production and export commitments which is simply unbearable. Pakistan today offers a secure, stable investment environment with deregulation programmes and a free market economy. Presently the total installed capacity in the country is 10,800 MW which is insufficient to meet the demand on a year-round basis.

The magnitude of this shortage is of the order of 2,000 MW. Electricity is available to less than one-third of the population and per capita consumption of electricity per annum is 300 KWH which is extremely low. The system is characterised by a high degree of suppressed demand. Projected annual growth in the demand is nearly 89% for the next 20 years. This means approximately 40,000 MW of additional capacity will be added to the national grid by the year 2018. Such a gigantic programme cannot be financed in the public sector due to ceiling on public sector development programme (PSDP), and resource mobilisation in the private sector is essential for meeting these development targets.

In order to support the power development programme of the country for the Eighth Plan (1993-1998), a minimum estimated amount of Rs. …

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

Electrical Energy: Prime Engine for National Development
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.

    Author Advanced search

    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.