Pakistan’s power transmission woes aren’t just a local concern; they ripple through global markets and investor sentiments. The stark reality, laid bare by ballooning financial losses and underutilised assets, sends a clear signal: Pakistan’s electricity lifeline is clogged, and the time for drastic interventions is now.
The escalating financial losses, from Rs3.67 billion in FY2021-22 to a staggering Rs60.38 billion in FY2023-24, are a blaring siren for investors. It’s not just about the money lost; it’s about the opportunity costs. Every rupee wasted on transmission inefficiencies is a rupee not spent on growth, innovation, or social welfare. This is a red flag for potential investors, who may think twice before pumping money into a leaky system.
The underutilisation of the 660 kV HVDC line is another sobering reality check. This megaproject, designed to transfer power from southern coal and nuclear plants to northern demand centers, is operating at a mere 38% of its capacity. This is a stark reminder that big-ticket infrastructure projects don’t always translate into immediate benefits. It also underscores the need for better planning, coordination, and long-term strategic thinking in Pakistan’s power sector.
But let’s not overlook the silver lining: the China-Pakistan Economic Corridor (CPEC). China’s expertise in grid modernisation and large-scale transmission projects could be a game-changer. With CPEC’s energy and infrastructure initiatives, Pakistan has a historic opportunity to piggyback on Chinese experience to revamp its national grid. But here’s the catch: these projects must align with Pakistan’s long-term energy security objectives. Blindly embracing foreign investment without a clear strategic vision could lead to more harm than good.
CPEC could catalyse the development of new HVDC transmission corridors, smart grid technologies, and regional connectivity. But Pakistan must also look inward, bolstering domestic policy reforms and regulatory frameworks to complement these investments. Operationalising competitive market mechanisms, such as independent grid management entities and private power wheeling agreements, could inject much-needed efficiency and innovation into the sector.
The implications for markets are profound. A modern, efficient, and resilient grid could boost investor confidence, attracting capital not just to the power sector but also to energy-intensive industries. It could facilitate the integration of renewable energy sources, opening up new avenues for green investments. Moreover, it could stabilise electricity tariffs, easing the burden on consumers and industries alike.
But let’s not forget the human cost. Every instance of forced load-shedding, every hike in electricity tariffs, has a real-world impact on millions of Pakistanis. It’s a reminder that economic growth and social welfare are two sides of the same coin.
Pakistan stands at a crossroads. One path leads to a modern, efficient, and resilient power transmission system, underpinned by strategic domestic reforms and smart international collaborations. The other path leads to more of the same—a fragile power sector, economic hardships, and wasted investments. The choice is clear, and the time to act is now. The markets are watching, and so is the world.
