Industries Struggle as Gas Becomes Scarce
The gas supply-demand gap increases as domestic users struggle.
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Gas shortages arrive every winter, a regular albeit sad fixture in Pakistan’s calendar. This year too, the government warns of load-shedding and rationing among other steps to manage the shortage. Gas consumption in Pakistan can be broadly divided into domestic, industrial, and power (as seen in the pie chart). Whereas, supply comprises domestic gas from Sui, and imported gas from Qatar.
SNGPL only holds around 680 million cubic feet per day (MMFCD) whereas, the consumption goes past 900 MMFCD. With the rising population, the gap is bound to increase multifold in the coming years.
The SNGPL curtailment schedule has announced load-shedding for non-export industries, in a rotational manner. Considering the rising inflation in the country, the reduced production will only exacerbate the problem and add to the plight of the common man.
In the future, Pakistan’s reserves are said to diminish within 15 years. Considering the country’s rising import trends, this intensifies the problem as Pakistan lags behind in sustainable development in all sectors. The need to transfer to renewable energy resources is ever so high as carbon neutrality becomes a necessity.
GRAPHICS OF THE DAY
Total Supply of Natural Gas in Pakistan
Natural Gas Consumption Sector-wise Breakdown
TWEET
Key points:
A team that consists of old players from one segment of society only weakens over time.
🤔 Imagine asking Wasim Akram and Waqar Younis to play for Pakistan in the T20 World Cup'22 🏏, we surely wouldn't have reached T20 World Cup Final (even while being the most unpredictable cricket team in the world).
🤔 Food for thought: Babar Azam (current captain of the Pakistan National Cricket Team) was only 3 years old (born in 1994) when Ishaq Dar became the Finance Minister of Pakistan for the first time (1997 to 1999).
💭Pakistan’s economy also relies on a small team of old elites (2% of the population) and what it can achieve. It remains underdeveloped as it ignores the talent of the majority of the country.
What Else We’re Reading
Pakistan needs USD 348 billion for climate and development challenges: World Bank (Dawn)
Bangladesh (the third South Asian country this year after Sri Lanka and Pakistan to turn to IMF for help) confidence lifts with IMF loan but tough reforms await (Nikkei Asia)
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