Electricity sector in Pakistan

Electricity in Pakistan is generated, transmitted, distributed, and retail supplied by two vertically integrated public sector utilities: Water and Power Development Authority (WAPDA) for all of Pakistan (except Karachi), and the Karachi Electric (K-Electric) for the city of Karachi and its surrounding areas. There are around 42 independent power producers (IPPs) that contribute significantly in electricity generation in Pakistan.

Electricity generation has increased by 3.18% in 2015 as a result of Government of Pakistan (GoP) efforts and China–Pakistan Economic Corridor (CPEC). The country has begun diversifying its energy producing capacity by investing in coal, nuclear energy, solar energy and wind energy to help offset the energy shortage while larger projects greater than 1000 MW such as the Diamer-Bhasha Dam, Kohala Hydropower Project, Pakistan Port Qasim Power Project, Sahiwal Coal Power Project, Thar Engro Coal Power Project, Hub Coal Power Project and new nuclear plants are now under construction or planned.

Pakistan electricity sector is a developing market. For years, the matter of balancing the country's supply against the demand for electricity had remained a largely unresolved matter. The country faced significant challenges in revamping its network responsible for the supply of electricity. Electricity generators were seeking a parity in returns for both domestic and foreign investors indicating it to be one of the key issues in overseeing a surge in electricity generation when the country was facing growing shortages. Other problems included lack of efficiency, rising demands for energy, and political instability. Provincial and federal agencies, who are the largest consumers, often do not pay their bills.At one point electricity generation had shrunk by up to 50% due to an over-reliance on fossil fuels. The country was hit by its worst power crisis in 2007 when production fell by 6000 Megawatts and massive blackouts followed suit.Load Shedding and power blackouts had become severe in Pakistan before 2016.

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