ISSUES, PROBLEMS AND

CRISES IN PAKISTAN
ISSUES, PROBLEMS AND CRISES IN
PAKISTAN:

• Content Layout:
• 1) Power Resources in Pakistan, crises and solutions.
• 2) Mineral Resources in Pakistan
• 3) Economical Challenges in Pakistan
Power Resources of Pakistan
INTRODUCTION:
• Energy can be obtained from various sources like
Wind, Sunlight, Biomass, Wastage and Water.
• These are either renewable or non renewable
resources.
• All forms of energy can be converted into power,
which can be used to do work.
• Electricity is used to operate machines and
appliances.
• The average demand is 22,000 MW and shortfall was
between 5000 and 6000 MW.
• Oil, hydral, gas, nuclear, solar energy are the
principal sources Add a footer 12/23/2024 4
of energy.
 Energy Resource

Non-renewable energy
sources diminish over
time, and are not able
to replenish Renewable resources
themselves. In other are restocked
words, they are finite, naturally and over
and once they are relatively short
used, they are periods of time.
effectively gone
because they take so
long to reform.

Solar
wind
Fossil Fuel oil coal Hydro power
Nuclear energy
natural gas Biofuel
ADD A FOOTER Geothermal
12/23/2024 5

Hydrogen gas
NON-
RENEWABLE
ENERGY:
Coal, oil, and natural gas are fossil
fuels. Even though they all get their
energy from the sun, none of them are
renewable. They all emit CO2 and
other emissions when burned.

Nuclear is also non-renewable,

but not a fossil fuel. It is carbon-free,
but causes radioactive waste.

Most importantly, for all intents and

purposes, whatever coal, oil, natural
gas, and nuclear exists12/23/2024
today is all 6
that we will ever have.
RENEWABLE
ENERGY
RESOURCES:
Solar, wind, and hydro are renewable
and carbon-free, and effectively
inexhaustible.

Bioenergy is renewable and carbon-

neutral. It emits CO2, but no more
CO2 than originally pulled from the
atmosphere.

Even though it is considered renewable, it

is possible to use bioenergy
unsustainably by harvesting it more
quickly than it can be replenished.
12/23/2024 7
 POWER RESOURCES IN PAKISTAN:

Non Renewable Energy Resource: Renewable Energy Resources:

 Water
 Coal
 Solar power
 Oil
 Wind
 Natural gas

 Uranium
 Decrease Electricity
) Low share of dependen source in
renewable energy ce on remote
fossil fuel areas
Free Best
source of solutions
Personal Interest energy for
once energy
installed crisis
Poor government
policies Green Renewa No
and ble emission
pollution energy of green
Major reasons for Faulty distribution free in house
energy crisis in system ( poor energy gasses
Pakistan distribution system) Pakistan
Econom

ng
Mismanagement of
energy resources. y

r vi
( Lack of technical

Se

trol
knowledge and

Soluti gy crises
equipment to utilize

n
existing resources)

co
Human

o
Aging of equipment. ity

on t
ener
(unable to generate
required electricity)
Environmen
Unproductive t
efforts. (Seminars 12/23/2024 9
and Conferences
but no
implementation)
CONSEQUENCES OF ENERGY CRISIS

• i). Economic Factors: Energy is pivotal for running all other

resources and crisis of energy directly influences all other
sectors of the economy. The economic progress is hampered
by decline in agricultural productivity as well as by halting in
operations of industries. One important factor of lower GDP
and inflation of commodity prices in recent years is attributed
to shortfalls in energy supply.
• ii). Agriculture Sector: Agricultural productivity of Pakistan is decreasing due to provision of energy for running
tube wells, agricultural machinery and production of fertilizers and pesticides. Thus higher energy means higher
agricultural productivity.

iii). Industrial Sector: Nearly all Industrial units are run with the energy and breakage in energy supply is having
dire consequences on industrial growth. As a result of decline in energy supply, industrial units are not only being
opened, but also the existing industrial units are gradually closing.
• iv). Unemployment: By closure of industrial units and less agricultural productivity, new employment
opportunities ceased to exist and already employed manpower is shredded by the employers to increase their
profit ratios. Thus energy crisis contributes towards unemployment.

v). Social Issues: This factor is primarily related to the domestic usage of energy (cooking, heating and water
provision). Load shedding cause unrest and frustration amongst the people and results in agitation against the
government.

vi). Poverty: Declination in economic growth, lower agricultural productivity, unemployment and shackling
industrial growth result in increasing poverty. Currently, around forty percent of our population is living beyond
poverty line and this ratio is increasing day by day. Ample control of energy crisis will surely yield in curbing the
menace of poverty.
RECOMMENDATIONS/SOLUTIONS OF
ENERGY CRISIS

Energy crisis can be curtailed by :

i). Reducing unnecessary energy use :
o Usage of electricity saving devices
o Awareness campaign for energy saving
o Reduction in unnecessary transportations by developing good public transport systems
and strengthening Pakistan railways
o Reduction in industrial uses with installation of effective equipment/ energy efficient and
with increasing efficiency of workforce (cost effective)
o Decreasing reliance on rental power projects, because instead of doing any good, they are
increasing prices of electricity.
o Decreasing line losses by using efficient power transmission cables
ii). Developing new energy resources :

o Tapping indigenous resources (Thar coal)

o Using renewable resources (water) by constructing new dams and hydro power plants
o Import of natural gas by IPI (Iran Pakistan India) and TAPI (Turkmenistan, Afghanistan, Pakistan
and India) pipelines.
o Import of electricity from Tajikistan -through Pak Afghan Tajikistan transmission- and Iran
(approximately 1000 MW from each of them) pipelines.

o Utilizing alternative energy resources :

 Wind power
 Biodiesel /Biomass
 Solar
 Tidal

o Enhancing civilian nuclear capacity

 12/23/2024 14
GRAPHICAL PRESENTATION OF ENERGY
(DEMAND AND SUPPLY)
Add a footer 12/23/2024 15
MINERAL RESOURCE IN PAKISTAN:

• Pakistan has a comparative advantage of its mineral resources occurring in several

varieties, colors and patterns. The country has the world’s second largest salt mines
and fifth largest copper and gold reserves, and second largest coal deposits, as well as
estimated billions of barrels of crude oil.
• The most potential and valuable minerals of Pakistan includes; Marble, Granite, Coal,
Chromite, Gypsum, Copper, Gold, Iron Ore, Lead zinc, Bauxite, Crude oil and Natural
gas. There are billions of commercially extractable reserves of these minerals that give
both comparative and competitive advantages to Pakistan in the global perspective.
• Despite huge potential, contribution of mineral sector to Pakistan’s GDP is around 3 %
and country’s exports are only about 0.1% of the world’s total.

12/23/2024 16
Challen
ges

to
Pakista
n’s
Econom
y
CHALLENGES TO PAKISTAN’S ECONOMY
(ECONOMICAL ISSUES):
1. Consume More and Save Less.
2. Import More and Export Less.
3. Low Government Revenue
4. Share in the World Trade is Shrinking.
5. Badly Lag in Social Indicators.
6. Face Energy and Water Shortages.
7. Cost of Doing Business is High.
8. Crisis of Governance and Implementation Weaknesses.
9. Uncertainty and Unpredictability due to Lack of Continuity.
10. Political Stability, Law and Order/Security
1. CONSUME MORE AND SAVE LESS:

• Out of every hundred rupees of our national income, we consume 85 rupees

and save only 15 rupees, which means that the amount of money which is
available to invest for economic growth and advancement is too little. Because
to grow by 6%, you need at least 24-25% investment rate - and if you want to
rely on domestic savings, your saving rate should be 25%. India’s saving rate
was about the same, but last year they recorded 34% saving rates. China’s
saving rate is 50%, so this is the contrast as to why we are in serious difficulty
because as a nation this is a problem which we have to recognize.
• Solution: We have to at least double on savings rate otherwise we will remain
dependent on foreign sources.
2. IMPORT MORE AND EXPORT LESS:

• Till 2007-2008, 80% of our imports were financed by our export earnings. This
ratio has come down to only 50%, it may go up to 60% but a gap of 40% of
financing needs in order to keep with the import level still exists. As a nation we
prefer to use even the basic commodities of foreign countries rather than locally
manufactured goods. Unless we do not change this attitude of preferring the
imported goods we have to keep on relying on outsiders to fill in this gap b/w
our imports and exports.
• Solution: The lower is this gap between our export earnings and expenditure on
imports - and that can be achieved only by expending our exports; our reliance
on external sources would be reduced.
3. LOW GOVERNMENT REVENUE:

• Fiscal deficit is the difference between the revenues which are collected in a year and the total
expenditure incurred by the Government. Pakistan’s government takes away 20% of national income as its
own. 80% is left in the private sector and 20% in the hands of the government is spent on defense, debt
servicing, development on education, health, general administration etc. The revenue generated is only
15% of the GDP at best, and in the worst days it is 12 to 13%. Out of the every rupee of income received
by a Pakistani, on average, tax paid is only 9 paisa’s and 91 paisa's remain with the individual.
• Pakistan is way below the norm for developing countries. Many people say that defense takes away a lot
of government expenditure. Whereas, the fact is that defense expenditure is only 20% of government
expenditure. It is only 4% of GDP, and is not such a large expenditure as compared to debt servicing which
is 7-8% of GDP and almost 40% of government expenditure.
• Solution: Government has to contain its fiscal deficit by raising revenues. Agriculture incomes are exempt,
professionals, retailers, wholesales, transport owners and many other service providers escape taxes by
paying a small fraction of what is due.
4. SHARE IN THE WORLD TRADE IS
SHRINKING:
• Pakistan is not taking advantage of the opportunities which a buoyant world
economy is providing. Pakistan is stuck with only a few commodities –
textiles, leather, rice, sports, goods and the surgical goods. We have not
entered the markets for more dynamic products. All our exports are to a few
markets – the USA, EU and the Middle East. So this narrow export base and
very limited geographical spread are not allowing us to expand our share.
• Solution: If we improve the quality of our products, go out and do the
marketing abroad, invest in research and development, the prospects do not
look promising.
5. BADLY LAG IN SOCIAL INDICATORS:

• One of the most glaring weaknesses is that a country like Pakistan that
should have had best indicators in literacy, infant mortality, fertility
rates, in access to water supply, in primary enrolment ratios has social
indicators which are more comparable to Africa rather than to the
countries of similar per capita income. Even Tajikistan, which is a very
poor country, has better literacy rate and primary enrolment ratios than
Pakistan.
• Solution: It means that if we had literacy rate of 100% instead of 55%,
then our per capita income would have been 2000$ rather than 1000$.
6. FACE ENERGY AND WATER SHORTAGES:

• Another challenge we face today is energy and water shortages, and that is not
because we are not generating enough electricity or we are not having enough water.
• We have silting of our dams, but no additional dams have been constructed since
Tarbela in 1974. We have water course losses of about 20-25%. Even after these losses,
the water is inequitably distributed. The influential land lords are able to take greater
share of water from the canals as compared to poor farmers. Therefore, the productivity
of poor farmer is only one ton per acre as compared to 3 tons by large holders.
• With the climate change taking place with all the 8 glaciers in Himalayas which are
going to melt, we are going to have difficulties in future due to global warming.
7. COST OF DOING BUSINESS IS HIGH:

• Pakistan is ranked among the bottom half of the rankings of the countries
where cost of doing business is quite high.
• Lack of coordination among various government agencies, innumerable laws
and regulations that are antiquated and outdated have proved to be serious
impediments.
• Labor laws, inspections by multiple agencies, the delays in the court system,
infringement of intellectual property rights and evasion of taxes by competing
firms in the informal sector have rendered some of the well established firms
unprofitable, or the feasibility of starting near ventures questionable.
8. CRISIS OF GOVERNANCE AND
IMPLEMENTATION WEAKNESSES:

• If we glance on policy documents of various governments on education,

agriculture, health, trade policy etc, and look at the same policy forty years ago
and the problems, there is hardly any significant record of implementation of
those policies or plans over this period. We produce five years plans and all
kinds of medium term frameworks, 9 but it is the poor governance and
implementation that are the weak links in getting things done.
• Solution: Unless we strengthen civil services and bring about a merit based
system of recruitment, promotion, performance evaluation, compensation,
disciplinary action, etc, we will not be able to see any difference in the quality of
governance.
9. POLITICAL STABILITY, LAW AND ORDER/
SECURITY:
• The overall arching theme is that for a robust economy we should have
political stability, law and order and security. The Armed Forces of Pakistan
deserve gratitude for what they have done in Malakand Division to bring
about stability as far as the law and order situation is concerned. The sooner
the country is gotten rid of this image of political instability, poor law and
order situation and insecurity, whereby investors from all over the world
hesitate in coming to Pakistan and invest, we will not be able to make any
progress in this country.
• Therefore, it is imperative that we resume the journey which has been
interrupted by nurturing a stable, secure and peaceful political environment.
10. UNCERTAINTY AND UNPREDICTABILITY
DUE TO LACK OF CONTINUITY:
• Every government whether military or civilian starts with a
clean slate, as if nothing happened before them and nothing
will happen after them. the blame game of successive
governments results into abrupt termination of all such
projects and programs. When these are resumed the cost has
escalated three times and it takes several additional years to
complete them. In the meanwhile the people of Pakistan suffer
because of this lack of continuity.
• Solution: Take the projects and programmes which were
initiated by the previous governments, evaluate them as to
what the strengths and weaknesses were, fix those
weaknesses and carry them forward. It will take only few years
to bring these inherited projects to completion and the
country will benefit from new motor ways, new ports,
highways, educational institutions etc.
THAN
K
YOU