Electricity sector in Pakistan

Electricity in Pakistan is generated, transmitted, distributed, and retail supplied by two vertically integrated public sector companies, Water and Power Development Authority (WAPDA) for all of Pakistan (except Karachi), and the Karachi Electric (K-Electric) for the city of Karachi and its surrounding areas. There are around 42 independent power producers (IPPs) that contribute significantly in electricity generation in Pakistan.
As of 2016, more than 99% of its population on average has access to electricity.
History.
Pakistan electricity sector is a developing market. For years, the matter of balancing the country's supply against the demand for electricity had remained a largely unresolved matter. The country faced significant challenges in revamping its network responsible for the supply of electricity. Electricity generators were seeking a parity in returns for both domestic and foreign investors indicating it to be one of the key issues in overseeing a surge in electricity generation when the country was facing growing shortages. Other problems included lack of efficiency, rising demands for energy, and political instability. Provincial and federal agencies, who are the largest consumers, often do not pay their bills. At one point electricity generation had shrunk by up to 50% due to an over-reliance on fossil fuels. The country was hit by its worst power crisis in 2007 when production fell by 6000 Megawatts and massive blackouts followed suit. Load Shedding and power blackouts had become severe in Pakistan before 2016.
Economic Survey 2019-20 unfolds that Pakistan's installed capacity to generate electricity has surged up to 37,402 MW by June 2020 which stood at 22,812 MW in June 2013, showing the growth of 64 percent.
Installed capacity.
According to the Pakistan Economic Survey 2019–20, the installed electricity generation capacity reached 37,402 MW in 2020. The maximum total demand coming from residential and industrial estates stands at nearly 25,000 MW, whereas the transmission and distribution capacity is stalled at approximately 22,000 MW. This leads to a deficit of about 3,000 MW when the demand peaks. This additional 3,000 MW required cannot be transmitted even though the peak demand of the country is well below its installed capacity of 37,402 MW.
Electricity concerns.
Although Pakistan has reduced blackouts and increased electricity production significantly, blackouts are still common, and the price of electricity has still increased. Recent tariff have contributed to this increase in prices.
The latest blackout happened in Pakistan on 9 January 2021 at 11.41pm local time (1841 GMT) on Saturday. It happened due to an engineering fault in the Southern Punjab. Hence, Pakistan is still facing electricity concerns but the government is trying to come up with solutions to avoid such incidents in the future.
Governance and sector reform.
Recent reforms include the unbundling and corporatization of the Water and Power Development Authority (WAPDA) into 10 regional distribution companies, 4 government-owned thermal power
generation companies and a transmission company, the National Transmission and Despatch Company. The hydropower plants were retained by WAPDA as WAPDA Hydroelectric. All are
fully owned by the government. K-Electric Limited (formally known as Karachi Electric Supply Company), which is responsible for power generation and distribution in the Karachi area, is
listed on the stock exchanges and is privately owned. Privately owned independent power producers generated 53% of the country's power in FY2016.
Effects of natural and man-made disasters.
During 2010 Pakistan floods and 2005 Kashmir earthquake power stations, power distribution and transmission and other energy infrastructures were damaged. During the floods and rainfalls the recently constructed Jinnah hydroelectric power plant was flooded in addition to severe damages to transmission and distribution network and installations while several power plants and refineries were threatened by rising waters and had to be shut down. Natural gas field output had to be reduced as the flood waters approached the wells. There has also been some concern by Pakistani nuclear activists over the effect of natural disasters on nuclear plants specially over the Chashma Nuclear Power Plant, since the plant lies over a geological fault.
Due to over reliance of Pakistan on dams for electricity generation, some environmental impacts of dams such as submergence of usable/ecological land and their negative impact on Pakistan's mangrove forests due to loss of river silt load, as well as increased risk of severe floods have become evident.