Comment by Riaz Haq on December 25, 2022 at 4:34pm

CAREC ENERGY OUTLOOK 2030

https://www.adb.org/sites/default/files/publication/850111/carec-en...

Total installed power generation capacity in Pakistan is 34.5 gigawatts (GW), and consists
mostly of thermal generation, reaching around 66% of the total. The significance of thermal
generation is expected to decrease in the future, since the government has set a course to shift
toward increasing renewable energy (including hydropower) generation. Pakistan’s massive
renewable energy potential—about 3.0 terawatts (TW)—is one of the key drivers of this shift
(Figure 66).
• Pakistan’s domestic energy production consists of oil, natural gas, and coal. However,
insufficient investment in exploration and development activities has made the country
rely heavily on imports—nearly 40% of its total primary energy supply is imported. Having
insufficient cross-border infrastructure and no operating cross-border pipelines for the transit
of natural gas and oil, Pakistan imports energy sources mostly via coastal terminals.
• Final energy demand in Pakistan was about 96 million tons of oil equivalent (toe) in 2018, and
is projected to reach 108–126 million toe in 2030, depending on the scenario. Natural gas is
expected to increase its share in the total energy supply, while reliance on biomass will decrease,
leading toward a cleaner future for residential consumers.
• The country has vast renewable energy resources, with total technical potential reaching
2,900 GW for solar, 340 GW for wind, and 60 GW for hydropower (Faizi 2020; UNIDO 2016).
Increasing the share of hydropower could help in terms of grid balancing, solving the issue of
solar and wind intermittency.
• In addition to the development of renewable energy and alternative sources, such as nuclear
power, priority investments in Pakistan include the introduction of smart metering and smart
grids, as well as energy efficiency measures.
• Further development of the transmission and distribution (T&D) network is crucial for
the country, as 25% of the population is not grid-connected and thus has no access to the
electricity network.
• Total investment needs for the energy sector vary significantly across all three scenarios—
from $62 billion to $155 billion—illustrating the significant requirements for transitioning
to more sustainable sources of energy generation and implementing extensive energy
efficiency measures.
• Pakistan’s energy sector presents significant investment opportunities because of its efforts
to transition to a more competitive energy market structure, its continued support for private
projects, and the government’s commitment to significantly develop renewable energy sources
in the future.
• Several challenges need to be addressed to introduce a more favorable investment climate,
including circular debt issues, and the overall condition and coverage of the T&D grid.

Comment by Riaz Haq on December 25, 2022 at 4:34pm

CAREC ENERGY OUTLOOK 2030

https://www.adb.org/sites/default/files/publication/850111/carec-en...

Total installed power generation capacity in Pakistan is 34.5 gigawatts (GW), and consists
mostly of thermal generation, reaching around 66% of the total. The significance of thermal
generation is expected to decrease in the future, since the government has set a course to shift
toward increasing renewable energy (including hydropower) generation. Pakistan’s massive
renewable energy potential—about 3.0 terawatts (TW)—is one of the key drivers of this shift
(Figure 66).
• Pakistan’s domestic energy production consists of oil, natural gas, and coal. However,
insufficient investment in exploration and development activities has made the country
rely heavily on imports—nearly 40% of its total primary energy supply is imported. Having
insufficient cross-border infrastructure and no operating cross-border pipelines for the transit
of natural gas and oil, Pakistan imports energy sources mostly via coastal terminals.
• Final energy demand in Pakistan was about 96 million tons of oil equivalent (toe) in 2018, and
is projected to reach 108–126 million toe in 2030, depending on the scenario. Natural gas is
expected to increase its share in the total energy supply, while reliance on biomass will decrease,
leading toward a cleaner future for residential consumers.
• The country has vast renewable energy resources, with total technical potential reaching
2,900 GW for solar, 340 GW for wind, and 60 GW for hydropower (Faizi 2020; UNIDO 2016).
Increasing the share of hydropower could help in terms of grid balancing, solving the issue of
solar and wind intermittency.
• In addition to the development of renewable energy and alternative sources, such as nuclear
power, priority investments in Pakistan include the introduction of smart metering and smart
grids, as well as energy efficiency measures.
• Further development of the transmission and distribution (T&D) network is crucial for
the country, as 25% of the population is not grid-connected and thus has no access to the
electricity network.
• Total investment needs for the energy sector vary significantly across all three scenarios—
from $62 billion to $155 billion—illustrating the significant requirements for transitioning
to more sustainable sources of energy generation and implementing extensive energy
efficiency measures.
• Pakistan’s energy sector presents significant investment opportunities because of its efforts
to transition to a more competitive energy market structure, its continued support for private
projects, and the government’s commitment to significantly develop renewable energy sources
in the future.
• Several challenges need to be addressed to introduce a more favorable investment climate,
including circular debt issues, and the overall condition and coverage of the T&D grid.

Comment by Riaz Haq on December 25, 2022 at 4:35pm

CAREC ENERGY OUTLOOK 2030

https://www.adb.org/sites/default/files/publication/850111/carec-en...


Energy Sector Profile
Country Profile
Pakistan is the world’s fifth most populous country, with a population of more than 225 million people
and a $264 billion nominal gross domestic product (GDP), as of 2020. Pakistan’s population and economy
have grown at a steady pace, with the GDP growing annually by 4%–6%, and the population by 2%, since
2015. While the coronavirus disease (COVID-19) pandemic has slowed down economic growth to
0.5% in 2020, Pakistan is expected to recover, with a projected economic annual growth rate of nearly 6%
until 2025.
Pakistan’s energy sector is highly dependent on fossil fuel imports. Due to insufficient exploration and
development activities, the country is a major importer of fossil fuels, such as oil and coal. Moreover, issues
with ever-increasing demand and an inability to meet needs with existing power generation capacities
have forced consumers to use biomass as means of cooking and heating, especially in the agriculture
sector, which makes up most of the GDP. On the other hand, being one of the largest countries in the
region, Pakistan has vast renewable resources, such as hydropower, solar photovoltaic (PV), and wind, as
well as experience in power generation from nuclear power. However, the share of electricity production
from renewables has been decreasing since 2015, with fossil-fuel based generation on an upward trend in
development (Figure 67). This has led to increases in carbon intensity, putting Pakistan in 95th position
out of 172 countries in 2018. Energy efficiency measures in Pakistan require further development and
implementation. The country was ranked the 87th most energy-intensive economy in the world in 2018.

--------

Energy Sector and Technologies Assessment
Conventional Fuel Production
Pakistan’s domestic energy production consists of oil, natural gas, and coal. The country also has significant
undeveloped oil and gas potential. However, insufficient investment in exploration and development
activities due to pricing policies has limited Pakistan’s ability to achieve security of supply through domestic
energy production.
Domestic oil production in the country amounted to around 4 million tons in 2019, while total import
volume was more than 10 million tons. The main production sites are located in Punjab and Sindh
provinces. The country is also planning to expand its refinery capacities to meet growing demand,
with a target capacity of 48 million tons per year by 2030. In 2019, total natural gas production stood at
33 billion cubic meters (bcm), slightly lower than domestic demand. The Sui Gas field is the largest natural

gas field in Pakistan, accounting for 10% of total domestic production (Pakistan Petroleum Limited).
However, major oil and natural gas fields in the country are in the later stages of their lifecycle, with
gradually declining production volumes.
Coal in Pakistan is mainly produced in Balochistan, Punjab, and Sindh provinces. While production was
only 3.3 million tons in 2015, the country expanded its production to nearly 6.8 million tons in 2019.
However, the country still imported approximately 15 million tons of coal to satisfy demand. Overall, coal
resources in Pakistan are estimated at more than 3 billion tons.

Comment by Riaz Haq on December 25, 2022 at 4:35pm

CAREC ENERGY OUTLOOK 2030

https://www.adb.org/sites/default/files/publication/850111/carec-en...


Energy Sector Profile
Country Profile
Pakistan is the world’s fifth most populous country, with a population of more than 225 million people
and a $264 billion nominal gross domestic product (GDP), as of 2020. Pakistan’s population and economy
have grown at a steady pace, with the GDP growing annually by 4%–6%, and the population by 2%, since
2015. While the coronavirus disease (COVID-19) pandemic has slowed down economic growth to
0.5% in 2020, Pakistan is expected to recover, with a projected economic annual growth rate of nearly 6%
until 2025.
Pakistan’s energy sector is highly dependent on fossil fuel imports. Due to insufficient exploration and
development activities, the country is a major importer of fossil fuels, such as oil and coal. Moreover, issues
with ever-increasing demand and an inability to meet needs with existing power generation capacities
have forced consumers to use biomass as means of cooking and heating, especially in the agriculture
sector, which makes up most of the GDP. On the other hand, being one of the largest countries in the
region, Pakistan has vast renewable resources, such as hydropower, solar photovoltaic (PV), and wind, as
well as experience in power generation from nuclear power. However, the share of electricity production
from renewables has been decreasing since 2015, with fossil-fuel based generation on an upward trend in
development (Figure 67). This has led to increases in carbon intensity, putting Pakistan in 95th position
out of 172 countries in 2018. Energy efficiency measures in Pakistan require further development and
implementation. The country was ranked the 87th most energy-intensive economy in the world in 2018.

--------

Energy Sector and Technologies Assessment
Conventional Fuel Production
Pakistan’s domestic energy production consists of oil, natural gas, and coal. The country also has significant
undeveloped oil and gas potential. However, insufficient investment in exploration and development
activities due to pricing policies has limited Pakistan’s ability to achieve security of supply through domestic
energy production.
Domestic oil production in the country amounted to around 4 million tons in 2019, while total import
volume was more than 10 million tons. The main production sites are located in Punjab and Sindh
provinces. The country is also planning to expand its refinery capacities to meet growing demand,
with a target capacity of 48 million tons per year by 2030. In 2019, total natural gas production stood at
33 billion cubic meters (bcm), slightly lower than domestic demand. The Sui Gas field is the largest natural

gas field in Pakistan, accounting for 10% of total domestic production (Pakistan Petroleum Limited).
However, major oil and natural gas fields in the country are in the later stages of their lifecycle, with
gradually declining production volumes.
Coal in Pakistan is mainly produced in Balochistan, Punjab, and Sindh provinces. While production was
only 3.3 million tons in 2015, the country expanded its production to nearly 6.8 million tons in 2019.
However, the country still imported approximately 15 million tons of coal to satisfy demand. Overall, coal
resources in Pakistan are estimated at more than 3 billion tons.

Comment by Riaz Haq on December 25, 2022 at 4:36pm

CAREC ENERGY OUTLOOK 2030

https://www.adb.org/sites/default/files/publication/850111/carec-en...


Electricity Generation
Pakistan’s electricity sector has a total installed capacity of 34.5 GW, with thermal generation dominating
the power mix, having a share of 66% (National Transmission and Despatch Company 2020). Gas-fired
plants are the main source of power, having an installed capacity of almost 9.3 GW, while oil-fired power
plants have 6.5 GW installed capacity and coal-fired plants have 4.6 GW. Since the regulatory framework
allowed independent power producers to develop generation projects, multiple new thermal power
plants were constructed. As the country’s oil and natural gas reserves are diminishing, further growth in
alternative energy sources is needed.
Historically, hydropower was one of the main sources of electricity generation in Pakistan. The total
hydropower resource potential is estimated at 60 GW (Faizi 2020). However, with the expansion of
thermal power, its share in electricity has declined significantly and currently holds a 29% share of total
installed capacity. The country has 30 hydropower plants in operation, with a total installed capacity
of 9.9 GW, including 17 categorized as major hydropower and 13 as small hydropower units operating
mainly as a run-of-river units. The three main projects are Tarbela Dam (4.8 GW installed capacity),
Ghazi–Barotha (1.4 GW), and Mangla Dam (1.1 GW). Tarbela and Mangla dams, commissioned in the
1970s, are considered the main contributors to hydropower generation. To enhance the quality and
reliability of supply, Mangla Dam is planned for refurbishment, and Tarbela Dam for extension.
Pakistan’s first nuclear power plant, Karachi Nuclear Power Plant (KANUPP), began operations in 1970,
with a capacity of 100 megawatts (MW). Since then, nuclear power generation has experienced active
growth, and current capacity is 2.5 GW. Cross-country cooperation is a cornerstone of Pakistan’s strategy
to reach its goal of 8,800 MW of nuclear installed capacity by 2030. Currently, one new reactor of
1,100 MW is being built.
The country’s renewable energy potential has been realized to only a limited extent. The theoretical
potential of total wind energy is estimated at 340 GW, with the southern wind corridors being the most
auspicious—the Gharo–Keti Bandar wind corridor has over 50 GW of potential alone. However, only
around 1.1 GW of wind energy capacity is currently in operation. Likewise, solar power has tremendous
potential—as high as 2,900 GW, only about 0.4 GW of which is installed as of 2021. Although projects such
as the Quaid-e-Azam Solar Park (0.4 GW capacity) were successfully implemented, the lack of political
commitment, land availability, and the lower performance of outdated PV plants installed earlier are among
the reasons for limited development of renewable energy. Additional potential solutions include offshore
wind, floating solar PV in existing hydropower reservoirs, and wind farms near hydropower plants with
integration into existing grid infrastructure.
Country Outlooks 2030—Pakistan 1

Power generation during fiscal year 2020 reached 121,691 GWh: 32% by hydroelectric plants, 57% by
thermal plants, 8% by nuclear plants, and 3% by renewable energy power plants.

Comment by Riaz Haq on December 25, 2022 at 4:36pm

CAREC ENERGY OUTLOOK 2030

https://www.adb.org/sites/default/files/publication/850111/carec-en...


Electricity Generation
Pakistan’s electricity sector has a total installed capacity of 34.5 GW, with thermal generation dominating
the power mix, having a share of 66% (National Transmission and Despatch Company 2020). Gas-fired
plants are the main source of power, having an installed capacity of almost 9.3 GW, while oil-fired power
plants have 6.5 GW installed capacity and coal-fired plants have 4.6 GW. Since the regulatory framework
allowed independent power producers to develop generation projects, multiple new thermal power
plants were constructed. As the country’s oil and natural gas reserves are diminishing, further growth in
alternative energy sources is needed.
Historically, hydropower was one of the main sources of electricity generation in Pakistan. The total
hydropower resource potential is estimated at 60 GW (Faizi 2020). However, with the expansion of
thermal power, its share in electricity has declined significantly and currently holds a 29% share of total
installed capacity. The country has 30 hydropower plants in operation, with a total installed capacity
of 9.9 GW, including 17 categorized as major hydropower and 13 as small hydropower units operating
mainly as a run-of-river units. The three main projects are Tarbela Dam (4.8 GW installed capacity),
Ghazi–Barotha (1.4 GW), and Mangla Dam (1.1 GW). Tarbela and Mangla dams, commissioned in the
1970s, are considered the main contributors to hydropower generation. To enhance the quality and
reliability of supply, Mangla Dam is planned for refurbishment, and Tarbela Dam for extension.
Pakistan’s first nuclear power plant, Karachi Nuclear Power Plant (KANUPP), began operations in 1970,
with a capacity of 100 megawatts (MW). Since then, nuclear power generation has experienced active
growth, and current capacity is 2.5 GW. Cross-country cooperation is a cornerstone of Pakistan’s strategy
to reach its goal of 8,800 MW of nuclear installed capacity by 2030. Currently, one new reactor of
1,100 MW is being built.
The country’s renewable energy potential has been realized to only a limited extent. The theoretical
potential of total wind energy is estimated at 340 GW, with the southern wind corridors being the most
auspicious—the Gharo–Keti Bandar wind corridor has over 50 GW of potential alone. However, only
around 1.1 GW of wind energy capacity is currently in operation. Likewise, solar power has tremendous
potential—as high as 2,900 GW, only about 0.4 GW of which is installed as of 2021. Although projects such
as the Quaid-e-Azam Solar Park (0.4 GW capacity) were successfully implemented, the lack of political
commitment, land availability, and the lower performance of outdated PV plants installed earlier are among
the reasons for limited development of renewable energy. Additional potential solutions include offshore
wind, floating solar PV in existing hydropower reservoirs, and wind farms near hydropower plants with
integration into existing grid infrastructure.
Country Outlooks 2030—Pakistan 1

Power generation during fiscal year 2020 reached 121,691 GWh: 32% by hydroelectric plants, 57% by
thermal plants, 8% by nuclear plants, and 3% by renewable energy power plants.

Comment by Riaz Haq on December 25, 2022 at 4:37pm

CAREC ENERGY OUTLOOK 2030

https://www.adb.org/sites/default/files/publication/850111/carec-en...



Transmission and Distribution
Pakistan’s power T&D system is suffering from significant energy losses and disruptions. In 2020, 19.8%
of energy was lost during its transmission, distribution, and delivery to end consumers. Among the
10 distribution companies, losses vary greatly from 9% to 39% (NEPRA 2020). On average, the country
experienced 81 interruptions (system average interruption frequency index) lasting nearly 5,300 minutes
(system average interruption duration index) in 2020. The poor performance can be attributed to a
variety of factors, including poor technical conditions, insufficient collection rate of accounts receivable,
and issues with circular debt present in the country.
Pakistan had 7,470 kilometers (km) of 500 kilovolts (kV) and 11,281 km of 220 kV T&D lines in 2020.
Distribution companies are responsible for T&D activities below 132 kV. Importantly, only 74% of Pakistan’s
population is connected to the power grid. With high electricity losses and frequent outages, Pakistan is
planning to introduce advanced grid management infrastructure and metering. Advanced conductors and
other smart grid upgrades could help reduce T&D losses.
There are two operators in Pakistan’s natural gas T&D system: Sui Northern Gas Pipelines Limited
(SNGPL), covering the central and northern regions of the country; and Sui Southern Gas Company
Limited (SSGCL), covering the southern regions. Total grid losses accounted for nearly 17% by SSGCL and
11% by SNGPL in 2020. According to estimates, average leakage rate is 4.9 leaks per km for SSGCL, and
2.2 leaks per km for SNGPL (for comparison, this value equals 0.2 in Germany and 0.4 in Massachusetts, on
average). The gas pipeline systems require a major overhaul and modernization to increase the efficiency
of transportation and to reduce leakages.

Cross-Border Infrastructure
In terms of cross-border power interconnections, Pakistan has one operational line as of 2021:
Mand–Jakigur, connecting Pakistan and Iran, with a capacity of 104 MW. In addition, Pakistan,
Afghanistan, the Kyrgyz Republic, and Tajikistan, have launched the Central Asia–South Asia (CASA-1000)
project, a mega power interconnection project of 1,300 MW. Pakistan’s part of CASA-1000 is currently
under construction, and is expected to transport electricity from Tajikistan and the Kyrgyz Republic. The
uncertain political situation in Afghanistan, through which CASA-1000 will transit to reach Pakistan, has
rendered difficult any predictions as to when and if the project can be successfully commissioned.
Natural gas is imported via sea terminals, mainly through two terminals located in the Qasim and Karachi
ports, with a cumulative capacity of 12 bcm annually. As of 2021, there are no operating cross-border
natural gas pipelines in Pakistan. However, in response to growing demand, the government has been
planning the construction of natural gas pipelines to increase import capacity, with the Iran–Pakistan
pipeline expected to be commissioned by 2025. The Turkmenistan–Afghanistan–Pakistan–India (TAPI)
pipeline has been discussed since more than a decade, but its realization remains uncertain given the
situation in Afghanistan and other political tensions between the participating countries. Further efforts to
bridge the supply and demand gap are planned with the construction of two additional terminals, bringing
total import capacity to nearly 18 bcm per annum.

Comment by Riaz Haq on December 25, 2022 at 4:37pm

CAREC ENERGY OUTLOOK 2030

https://www.adb.org/sites/default/files/publication/850111/carec-en...



Transmission and Distribution
Pakistan’s power T&D system is suffering from significant energy losses and disruptions. In 2020, 19.8%
of energy was lost during its transmission, distribution, and delivery to end consumers. Among the
10 distribution companies, losses vary greatly from 9% to 39% (NEPRA 2020). On average, the country
experienced 81 interruptions (system average interruption frequency index) lasting nearly 5,300 minutes
(system average interruption duration index) in 2020. The poor performance can be attributed to a
variety of factors, including poor technical conditions, insufficient collection rate of accounts receivable,
and issues with circular debt present in the country.
Pakistan had 7,470 kilometers (km) of 500 kilovolts (kV) and 11,281 km of 220 kV T&D lines in 2020.
Distribution companies are responsible for T&D activities below 132 kV. Importantly, only 74% of Pakistan’s
population is connected to the power grid. With high electricity losses and frequent outages, Pakistan is
planning to introduce advanced grid management infrastructure and metering. Advanced conductors and
other smart grid upgrades could help reduce T&D losses.
There are two operators in Pakistan’s natural gas T&D system: Sui Northern Gas Pipelines Limited
(SNGPL), covering the central and northern regions of the country; and Sui Southern Gas Company
Limited (SSGCL), covering the southern regions. Total grid losses accounted for nearly 17% by SSGCL and
11% by SNGPL in 2020. According to estimates, average leakage rate is 4.9 leaks per km for SSGCL, and
2.2 leaks per km for SNGPL (for comparison, this value equals 0.2 in Germany and 0.4 in Massachusetts, on
average). The gas pipeline systems require a major overhaul and modernization to increase the efficiency
of transportation and to reduce leakages.

Cross-Border Infrastructure
In terms of cross-border power interconnections, Pakistan has one operational line as of 2021:
Mand–Jakigur, connecting Pakistan and Iran, with a capacity of 104 MW. In addition, Pakistan,
Afghanistan, the Kyrgyz Republic, and Tajikistan, have launched the Central Asia–South Asia (CASA-1000)
project, a mega power interconnection project of 1,300 MW. Pakistan’s part of CASA-1000 is currently
under construction, and is expected to transport electricity from Tajikistan and the Kyrgyz Republic. The
uncertain political situation in Afghanistan, through which CASA-1000 will transit to reach Pakistan, has
rendered difficult any predictions as to when and if the project can be successfully commissioned.
Natural gas is imported via sea terminals, mainly through two terminals located in the Qasim and Karachi
ports, with a cumulative capacity of 12 bcm annually. As of 2021, there are no operating cross-border
natural gas pipelines in Pakistan. However, in response to growing demand, the government has been
planning the construction of natural gas pipelines to increase import capacity, with the Iran–Pakistan
pipeline expected to be commissioned by 2025. The Turkmenistan–Afghanistan–Pakistan–India (TAPI)
pipeline has been discussed since more than a decade, but its realization remains uncertain given the
situation in Afghanistan and other political tensions between the participating countries. Further efforts to
bridge the supply and demand gap are planned with the construction of two additional terminals, bringing
total import capacity to nearly 18 bcm per annum.

Comment by Riaz Haq on December 25, 2022 at 4:37pm

CAREC ENERGY OUTLOOK 2030

https://www.adb.org/sites/default/files/publication/850111/carec-en...


Oil is also currently imported via sea terminals. Oil terminals (the Karachi port, the Qasim port, and the
Balochistan refinery single-point mooring terminal) are located near Karachi and have a total import
capacity of 51 million tons per year (Table 6).
Energy Consumption
Pakistan’s industry is dominated mostly by small and medium-sized enterprises in sectors such as
leather, textiles, and food processing. Most entities use fossil fuels as feedstock and run on outdated and
inefficient equipment. Cement and brick industries in Pakistan have historically been the two main energy
consumer groups. The combined potential of energy efficiency measures for these industries represents
about 40% of the total industry energy savings potential. Key levers include switching to multistage dry
kilns for cement or the introduction of modern designs, such as zig-zagging for brick kilns. The National
Energy Efficiency and Conservation Authority (NEECA) has been a main driver of progress, having
recently implemented a mandatory energy efficiency policy for electric motors, showing the government’s
commitment to increasing energy savings. The NEECA also plays a prominent role in promoting energy

audits in various industrial sectors. As a result of these efforts, Pakistan’s energy intensity declined
from 5.1 megajoules (MJ) per dollar of GDP in 2007 to 4.4 MJ per dollar of GDP in 2015. Despite these
developments, the institutional framework for energy efficiency requires significant further development
to achieve higher levels of efficiency across the board.
Energy efficiency measures in Pakistan often require region-specific optimization, especially in building
structures (for example, buildings in southern parts require more cooling than heating). One of the key
challenges is the inadequate energy performance standards of the Building Energy Code of Pakistan. The
Code focuses mainly on efficiency in commercial buildings, which was last updated in 2011, and failed to
introduce modern efficiency standards. For instance, the measures that might have the largest impact
in terms of energy savings include building envelope insulation and efficient lighting. Some efforts to
improve consumption efficiency can, however, already be observed—for example, the distribution of free
compact fluorescent lamps to replace inefficient incandescent bulbs and promote more energy-efficient
solutions for artificial lighting.
While the transport sector plays a leading role in the country’s economic activity, it is also the biggest
contributor to air pollution, with the transport sector making up more than 40% of total emissions.
Importantly, Pakistan has been experiencing a rapid growth in the number of vehicles in use, as the
share of households owning a car increased from 6% to 9% in 2021. Recognizing challenges related to
imports of oil products, the government actively promotes the use of electric vehicles (EVs). For instance,
the recently approved National Electric Vehicle Policy introduced tax incentives for imports and
production, and also set ambitious EV targets for 2030 (30% of newly sold cars and trucks, and 50%
of buses and two- and three-wheelers, to be EVs). In terms of railway transport, Pakistan relies solely
on diesel locomotives as of 2021—the country used to have 16 electric locomotives in the early 2000s,
but the government closed the lines and stopped using them after frequent copper theft incidents at
different points along the tracks. Still, Pakistan has continued efforts to improve efficiency by replacing old
locomotives, leading to substantial energy savings of 3.5 million liters of diesel in 2019.

Comment by Riaz Haq on December 25, 2022 at 4:37pm

CAREC ENERGY OUTLOOK 2030

https://www.adb.org/sites/default/files/publication/850111/carec-en...


Oil is also currently imported via sea terminals. Oil terminals (the Karachi port, the Qasim port, and the
Balochistan refinery single-point mooring terminal) are located near Karachi and have a total import
capacity of 51 million tons per year (Table 6).
Energy Consumption
Pakistan’s industry is dominated mostly by small and medium-sized enterprises in sectors such as
leather, textiles, and food processing. Most entities use fossil fuels as feedstock and run on outdated and
inefficient equipment. Cement and brick industries in Pakistan have historically been the two main energy
consumer groups. The combined potential of energy efficiency measures for these industries represents
about 40% of the total industry energy savings potential. Key levers include switching to multistage dry
kilns for cement or the introduction of modern designs, such as zig-zagging for brick kilns. The National
Energy Efficiency and Conservation Authority (NEECA) has been a main driver of progress, having
recently implemented a mandatory energy efficiency policy for electric motors, showing the government’s
commitment to increasing energy savings. The NEECA also plays a prominent role in promoting energy

audits in various industrial sectors. As a result of these efforts, Pakistan’s energy intensity declined
from 5.1 megajoules (MJ) per dollar of GDP in 2007 to 4.4 MJ per dollar of GDP in 2015. Despite these
developments, the institutional framework for energy efficiency requires significant further development
to achieve higher levels of efficiency across the board.
Energy efficiency measures in Pakistan often require region-specific optimization, especially in building
structures (for example, buildings in southern parts require more cooling than heating). One of the key
challenges is the inadequate energy performance standards of the Building Energy Code of Pakistan. The
Code focuses mainly on efficiency in commercial buildings, which was last updated in 2011, and failed to
introduce modern efficiency standards. For instance, the measures that might have the largest impact
in terms of energy savings include building envelope insulation and efficient lighting. Some efforts to
improve consumption efficiency can, however, already be observed—for example, the distribution of free
compact fluorescent lamps to replace inefficient incandescent bulbs and promote more energy-efficient
solutions for artificial lighting.
While the transport sector plays a leading role in the country’s economic activity, it is also the biggest
contributor to air pollution, with the transport sector making up more than 40% of total emissions.
Importantly, Pakistan has been experiencing a rapid growth in the number of vehicles in use, as the
share of households owning a car increased from 6% to 9% in 2021. Recognizing challenges related to
imports of oil products, the government actively promotes the use of electric vehicles (EVs). For instance,
the recently approved National Electric Vehicle Policy introduced tax incentives for imports and
production, and also set ambitious EV targets for 2030 (30% of newly sold cars and trucks, and 50%
of buses and two- and three-wheelers, to be EVs). In terms of railway transport, Pakistan relies solely
on diesel locomotives as of 2021—the country used to have 16 electric locomotives in the early 2000s,
but the government closed the lines and stopped using them after frequent copper theft incidents at
different points along the tracks. Still, Pakistan has continued efforts to improve efficiency by replacing old
locomotives, leading to substantial energy savings of 3.5 million liters of diesel in 2019.

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