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Unformatted text preview: Pakistan has an enormous potential of its energy resources however it still remains
energy deficient and has to rely heavily on imports to satisfy its needs. Renewable
resources that are technologically viable and have prospects to be exploited
commercially in Pakistan include micro-hydel, bio-energy, wind and solar energy.
Nevertheless increasing demands on limited resources has been a major environmental
concern for the country. This resource crunch is exacerbated by use of unclean energy
sources and continuing pollution threat. Chapter 8 Energy and Renewable Resources – fuelling
the future Pressures
The general shortage of energy supply, complemented with inefficient
use and wastage continues to broaden the demand supply gap. The
cost of load shedding – caused mainly to meet the demand supply gap –
is estimated at 1.7% reduction in GDP. This does not include the cost
due to lost trade and energy theft. Following sub-sections present some
of the key pressures faced by Pakistan’s energy sector.
Increased Energy Consumption
Pakistan's energy consumption has nearly tripled in the last 20 years, from 0.6 quadrillion
Btu in 1980 to 1.9 quads in 2001. Still, Pakistan accounts for less than 0.5% of total world
energy consumption. In terms of per capita energy consumption, Pakistan's level of 12.9
million Btu in 2001 was higher than Bangladesh's (3.7 million Btu), but virtually on par with
India's (12.6 million). In comparison, China's per capita energy consumption in 2001 was
30.9 million Btu, Iran's was 80.3 million Btu, and Russia's was 195.3 million Btu, while U.S.
per capita consumption was 341.8 million Btu.
As industry has expanded, factories have emitted more and more toxic effluents into the air.
Also, as in other developing countries, the number of vehicles in Pakistan has swelled in
recent years--from 680,000 in 1980 to 5 million in 2003. The 1992 National Conservation
Strategy Report claims that the average Pakistani vehicle emits 25 times as much carbon
dioxide as the average U.S. vehicle, as well as 20 times as many hydrocarbons and more
than 3.5 times as many nitrous oxides in grams per kilometre.
Cars are the leading source of air pollution that adversely
affects Pakistan's economy and population. Economic
damages from urban air pollution are estimated at about
$370 million, with 6.4 million people hospitalized annually for
air-pollution-related illnesses. A recent advertisement placed
by the government in a newspaper warned, "Take care of
your tune-ups before the poison in the air takes care of you."
Many Pakistani environmentalists say that poor fuel quality is
also to blame for the country's serious air pollution problems. Fuel consumption rose by
188% in Pakistan from 1980 to 1998, and gasoline continues to contain high levels of lead
and sulphurs. Unleaded gasoline was introduced in 2001, but many vehicles in Pakistan's
major cities still use leaded gasoline. Various grades of gasoline sold contain about 350
mg/litre of lead--in comparison, leaded gasoline in other countries usually contains no more...
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This note was uploaded on 10/02/2010 for the course MBA 32343 taught by Professor Samghouri during the Spring '10 term at Karachi Institute of Economics & Technology.
- Spring '10