Govt Announces Over 2 Hours of Daily Load Shedding Amid Fuel Constraints

In Pakistan, the government has been compelled to implement significant load shedding, exceeding two hours daily during peak demand periods. This difficult decision, announced amid severe fuel constraints, is presented as a necessary measure to mitigate the escalating costs of electricity generation and avert a drastic hike in consumer tariffs. The Power Division stated that this step is crucial for reducing reliance on expensive imported fuels, particularly liquefied natural gas (LNG).

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The government has decided to suspend the electricity supply for about 2.25 hours daily between 5:00pm and 1:00am.

The root cause of these fuel shortages is the suspension of LNG imports from Qatar, Pakistan's primary supplier under long-term contracts. This disruption stems from a force majeure declaration by Qatar, reportedly due to attacks on its gas fields amidst the ongoing US-Iran conflict. This geopolitical instability halfway across the world directly impacts Pakistan's energy security and economic stability, highlighting the nation's vulnerability to global supply chain disruptions.

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This step is aimed at reducing the use of costly fuels and preventing a sharp rise in tariffs.

Despite these challenges, the Power Division emphasized its commitment to stabilizing electricity prices. It highlighted past efforts that led to a reduction in average tariffs, providing relief to consumers through structural reforms and efficient operations. The government maintains that the current load shedding is a targeted approach, primarily affecting peak hours (5:00 PM to 1:00 AM) when demand surges, to prevent a much larger tariff increase. Prime Minister Shehbaz Sharif is reportedly overseeing the situation closely, directing that price hikes be minimized even if it necessitates using more expensive furnace oil, while local gas is being prioritized for power plants to offset costs.

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The main challenge at present is during peak hours from 5:00pm to 1:00am. During this time, demand increases significantly, mainly due to reduced hydel generation. Relying on expensive fuels to meet this demand could lead to a substantial increase in electricity prices.