‘Survey for Power Sector’ under Preparatory Survey on JICA Cooperation Program for Industry Development (Investment Climate Improvement in Karachi for Power Sector)

Energy is essential both for high and sustainable growth. Pakistan has been facing an unprecedented energy crisis for the past few years due to widening demand and supply gap. Its current energy demand far exceeds its indigenous supplies. Consequently, the country is facing difficulties in providing adequate electric power to its citizens. During the last two years the situation has worsened to an extent which demands an immediate action to overcome the crisis. The power sector is mainly dependent on natural gas and furnace oil for its thermal power generation. Pakistan imports oil amounting to $ 13 billion per annum, which is a huge burden on the economy. The gas fields are also depleting very fast. There is an urgent need to go for import of Liquefied Natural gas (LNG) and LPG as substitute for Natural Gas in the country. Development of local coal mining is also important for improvement of energy sector. JICA is studying the matter of possible venues for investment in power sector in Karachi through an assistance program with Board of Investment.