Since many production and construction activities need energy as their input, the demand for energy is increasing with time. It is very important for the economic development and growth of the country, especially developing countries like Pakistan. The energy sector of Pakistan has been in crisis due to a lack of energy output to keep up with the rising demand (around 37,744 MW in 2019) of the population and industries. To meet the demand Pakistan relies on imported gas and oil, which is expensive due to high prices globally. The World Bank has agreed to a $3 billion loan to develop energy infrastructure.
The funds by the World Bank will support energy efficiency and work towards the conservation of energy as well. Since energy resources like oil and gas are non-renewable and depleting over time, it is important to shift to renewable energy sources. The loan will also expand the solar power projects across the country which is a sustainable solution and will significantly benefit Pakistan. It will change several years of imbalanced and poorly planned expansion. The energy sector was also demoted as there were high power tariffs due to the weakening rupee and high prices of oil. Given the precarious economic situation of the country, it has become a necessity to expand renewable energy resources and develop energy infrastructure.
Even though it is not an easy task to solve the energy crisis in Pakistan and in the world, small steps can make a huge difference in the long run. Government must focus on climate change and work towards reducing carbon print. Moreover, the government should provide subsidies for the power and energy sector so that there is more production. It will be beneficial if the renewable energy industry is subsidised. The government of Pakistan can also collaborate with countries like China that use advanced technology in the energy sector and promote private-public cooperation to bring Pakistan out of the energy crisis and encourage the development of energy sector infrastructure.
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