In recent years, with the sustained and rapid economic growth and the improvement of people’s living standard,Pakistanelectricity supply shortage issues have become increasingly prominent, pull brake to be restricted report the situation has occurred, for the enterprise’s normal production and people’s daily life to great effect. To change the current power shortage situation, the government adopted a series of measures to increase investment, power industry, and to encourage and attract foreign and private investment in electric field.
A)Pakistan Electric Power Industry Development
(A) Generating Capacity
By the end of 2007,Pakistanhas a variety of large and medium-sized power plant ( station )37, total installed capacity of 19440000 kilowatts. The thermal power plant 31( oil and gas coal29,2), the installed capacity of 12515000kilowatts, accounting for64.4% of total installed capacity; large hydroelectric station 4, the installed capacity of 6493000kilowatts, accounting for33.2% of total installed capacity. Tower Bella hydropower station, the largest hydropower station, installed capacity amounts to 3478000 kilowatt; small hydropower station dozens, but the total installed capacity of only108000 kilowatts; nuclear power station 2, the installed capacity of 462000kilowatts, accounting for2.4% of total installed capacity. Wind energy, solar energy, biomass energy and other renewable energy utilization is still in the exploration and attempt phase, did not form dimensions.
(B) Supply And Demand Situation
Pakistanpower station installed capacity has reached 19440000 kilowatts, but because the transmission process of loss and other reasons, the actual transmission capacity is 15140000kilowatts, the power supply gap in 2007about 2000000 kw. Predict 2010, electricity demand will reach 20500000kilowatts, to the present power supply level, the gap will increase to 5000000kw. In electricity consumption, electricity residents accounted for nearly half (43.3%), industrial electricity accounts for about 1/4(26.6%), agricultural, commercial and public electricity accounted for 12.6%,6% and4.9%, other industries accounted for 6.6%.
(C) Existing Problems
In 1947 theIndiadivision ofPakistanat the beginning of, the infrastructure ofPakistanelectric power industry are extremely weak, almost a blank. Go up century 60 time, Pakistan in the India River Watershed agreement to use aid built tower Bella power station project, solves the problem that the power supply. Due to various reasons, the power industry develops slowly, so that the power shortage problem is outstanding gradually. To this end, the government ofPakistansince 1994 has introduced to encourage the private sector investments on electric power, to state-owned power enterprise sector and privatisation and other measures, obtained certain result. Foreign investors and the private enterprises inPakistanhave invested in the construction of18 power plants, a total installed capacity of 5859000 kilowatts,Pakistanaccounted for the national total installed capacity of nearly 1/3, the power plant was built, to alleviate the contradiction between power supply and demand has played a positive role. But as a result ofPakistanelectric power industry development process in the presence of the following questions, the problem of insufficient power supply in the short term can not solve.
a)Deficiency of construction fund. The government ofPakistanin the development and construction of large hydropower station has been aspiring, but because of their limited financial resources, and not from the international financial institutions or other countries to raise funds for construction projects, many of the delay to the start.
b) The construction of weak ability.Pakistaneconomy is relatively backward, industrialized rate is low, electric power equipment manufacturing industry has not really started, professional technical and management personnel shortage. Almost all large and medium-sized power project cannot be carried out independently, from design, procurement, construction and installation commissioning, maintenance, operation and management of each link are heavily dependent on foreign contractors.
c) Transmission loss. The vast majority of Pakistan hydropower station is located in the northern part, while the load is mainly concentrated in the central and southern parts of the city, as the transmission distance is far, coupled with the transmission line voltage, not a part of power transmission and transformation system overload operation, equipment stale ageing, serious causes of stealing electricity, power loss rate of 22%.
d) Power structure is not reasonable. Pakistan has abundant water resources, but in the last century60-70construction in several large hydropower station, after a very long time not to build large hydropower projects, new projects to thermal power projects.Pakistan’s current oil, natural gas proven reserves is limited, as in recent years the oil price rise continuously, not only the cost of power generation rise, supply of raw materials will be increasingly tense.
e) Affirmatory electrovalency is unreasonable, the government burden. Power supply of electricity inPakistanoccupies the dominant position (64.4% ), and in the oil and gas as the main fuel. In recent years, along with the international oil price rise continuously, power generation costs continue to rise, but the Pakistan current average price is maintained at 4rupees / degree (equivalent to 6.7cents ) per level. In order to avoid the price impact of enterprise production and people’s life, the government ofPakistanevery year to huge amounts of financial subsidies, only 2006-07fiscal year, in the electricity sector subsidy of $1000000000,2007-08 is expected fiscal year to $1200000000.

B) Pakistan Electric Power Industry Development Prospect And Planning
The India River from the northern hills to the South Plains north-south throughout Pakistan, along the river, Durham, odd sodium Humber, Ravi River and other tributaries to be richly endowed by nature, has the natural advantage of hydropower development, hydropower installed capacity is estimated to reach 46000000kilowatts, but has built hydroelectric power station installed capacity is6500000 kilowatt. Secondly,Pakistanis rich in coal reserves, estimated reserves of up to 1850tons, while the high sulphur content, but also as an alternative to oil and gas power fuel. In addition,Pakistanin southern Linhai, a vast desert contains inexhaustible wind, solar and other renewable energy.
In order to solve the increasing shortage of electricity supply problems, guarantee the sustained and rapid economic development, the government ofPakistanto the electric power development and long-term planning. First, vigorously develop hydropower, promote the neelum, Jack McCallum, Baasha, Cara Gbagbo, a thick, and several other large project start as soon as possible; the coal as a future thermal power development priorities, to seek foreign capital and technical support, increase the strength of active exploration and exploitation; development and utilization of wind energy, solar energy and other renewable resources; expand the relevant countries in the field of nuclear power cooperation.
For this, government ofPakistanon medium-term (2005-2010) and long-term (before 2030) the planning for electric power development are as follows:
A)Encouraged to adopt PPP or BOT way, in all the major rivers ( especially theIndiaRiver) on the construction of large and medium-sized hydropower station in river channel, or to build a small hydropower station, and strive in 2030so that the hydropower installed capacity by 6460000kilowatts to32660000 kilowatts.
B) To maximize the development of coal, the coal fired power station installed capacity in 2030 before reaching about 20000000 kilowatts, accounting for18% of the total electricity generation.
C) Actively develop nuclear power, strive to achieve the2030nuclear power installed capacity of 8800000 kilowatts of target.
D) Vigorously develop renewable energy, before 2010in Balochistan and Sindh province, built 700000kilowatts of wind power station, before 2030, renewable energy generating capacity reached5% of the total electricity generation (9700000 kW ).
E) To further promote the participation of the private sector in power industry development, make its participate in the construction of hydropower installed capacity in 2010 reached 7100000kilowatts.
F) Strengthening the repair and reconstruction of transmission network, improve power transmission capacity, reduce power loss.
G) Speeds up to the water conservancy and electric power development agency, the State Grid Corporation of state-owned electric power sector restructuring and privatisation pace, through the realization of commercial operation, improve the working efficiency of the Department, the quality and level of service.