GAS SHORTAGE IN PAKISTAN
The energy crisis in Pakistan has been a major contributing factor for its slowed economic growth rate by negatively impacting the country’s already meager economy. Pakistan’s acute energy crisis has affected each segment of the society, ranging from textile to FMCGs and other manufacturing concerns. Gas reserves have decreased significantly, leading to a sharp decline in the share of gas in energy production from 52% in 2005 to 29% in 2014. The textile industry’s exports have declined significantly owing to the energy crises.
SOLUTION: SWITCH TO COAL?
The current situation of gas supply in Pakistan portrays a further fall in the manufacturing exports and also lesser foreign exchange earnings. The declining trend of natural gas in Pakistan will continue to further fall in the years ahead. As a consequence, many manufacturing industries are moving towards coal for steam and power generation. With the electricity shortage reaching to 7000 MW in the year 2014, a number of coal power plant projects have been initiated.
Being the cheapest commodity with the most consistent supply throughout the year, coal is gaining popularity amongst all industrial sectors in Pakistan. Act now and move towards coal to take advantage of the low coal pricing and consistent supplies.
