Crisis’ has been coined by a Greek word which means ‘decisive moment’. Crisis is declared when something has gone to a level where an action must be taken to avoid complete disaster or breakdown. Energy production of any country is the measure of its economy. No country can achieve high economic growth without producing sufficient energy. Production of energy reflects industrial output, agricultural output, transportation, etc. When energy supply of an industry is restricted, its output decreases and cost of production increases due to which many industries shut down leaving labour unemployed.
ENERGY CRISES IN PAKISTAN
The upsurge of inflation is due to energy shortage in ...view middle of the document...
The unannounced gas load shedding in the country has put the CNG transport in troubled as well as consumers, industry and other business activities .The gas shortage has forced a number of industrial units to close down while delay in fulfillment of export consignments has become a matter of routine due to less supply and low pressure of natural gas. Moreover, it has been reported that in small cities and towns of the country, the commodity continues to disappear for hours without prior intimation, thus badly affecting the domestic users as well as the public and private transport running on CNG.
Ineffective Gas Load Management Plan
Meanwhile the government has already announced “Gas Load Management Plan” under which gas supply to the industries and CNG stations would be halted for two days a week but the plan is looking ineffective. Under the management it was decided that there would be two-day load-shedding in a week for the textile industry, however the days have now been enhanced up to four days a week which is totally unjust with the industries. In the present situation when there is six to eight hour power load shedding, gas shortage is hampering the growth of industries, which would affect the growth of overall exports of the country, the economic condition of the country had suffered a lot due to various crises and the growth rate was witnessing a downward trend. Such circumstances would definitely increase the ratio of unemployment. Similarly, domestic consumers throughout the country are also facing problems due to the long hours of gas load shedding and they forced to use woods for cooking food and for other uses. On the other hand, suspension of gas supply has forced closure of industrial units, rendering thousands of workers unemployed.
Wide Scale Mismanagement in Gas Supply
It is pertinent to note that in the priority list of gas supplies, industrial sector stands next to the domestic consumers which are the top priority. In order of priority, the government’s distribution of natural gas ranges from domestic consumers, industries, Independent Power Producers (IPPs) and fertilizer factories. The wide scale mismanagement is yielding negative impact on the national economy and hurting industrial investment of billion dollars, In the broader spectrum, the gap between supply and demand of natural gas has reached nearly one billion cubic feet per day mark (bcfd) resultantly the management is forced to cut gas supply for industrial sector of Punjab and CNG sector of Sindh.
According to the petroleum ministry estimates, natural gas shortfall against committed supplies remained around 911 million cubic feet per day (mmcfd) in December and will increase up to 1.1 MMCFD in January 2012 and 1.4mmcfd in February, before easing down to 726mmcfd in March. It is unfortunate to forecast that the problem is likely to worsen in the coming years. According to official estimates, gas shortfalls are estimated to reach 2.5...