The Asian Development Bank (ADB) is helping Pakistan craft, a comprehensive energy efficiency policy and investment programme to meet the growing energy demands of an expanding economy and population. ADB is also providing a $600,000 grant to fund the preparation of the Sustainable Energy Efficiency Development Programme.
According to ADB sources, the activities will include a comprehensive study on the energy efficiency market and build awareness in the country of the need for energy efficiency. It will also draw up a strategy for launching a sustainable long-term national energy efficiency programme and design suitable investment projects.
Rapid economic expansion and population growth in Pakistan have substantially increased energy demand, as the country continues to industrialise and standard of living improved. Pakistan's Medium-Term Development Framework 2005-2010 sets out an 8 percent annual gross domestic product growth target, and to achieve this, energy consumption is forecast to expand at an average rate of 12 percent annually, more than double the rate between 2000 and 2006.
ADB project study revealed that the Pakistan economy has grown at an unprecedented rate in the past 5 years. Coupled with the rapid population growth, this economic expansion is causing energy demand to increase sharply as Pakistan continues to industrialise and standard of living improved.
The Government's Medium Term Development Framework 2005-2010 sets out a challenging program to achieve 8% annual growth in gross domestic product (GDP). To meet this target, energy consumption is forecast to grow at an average rate of 12% per annum, more than double the rate between 2000 and 2006.
This will increasingly strain Pakistan's primary energy supply sources. Rising oil consumption and flat domestic production once again will trigger a rapid increase in oil imports, while declining domestic natural gas reserves-in the absence of substantial new discoveries-will require the country to import gas for the first time in its history, through both pipelines and liquefied natural gas shipments.
Electricity consumption projected to grow an average of 8% per annum until 2015 (although recent experience suggests much higher demand growth), will similarly require large power generation capacity additions.
Higher energy demand and imports will also require massive investments in associated port terminals, storage facilities, refining capacity, pipeline and transmission networks, and surface fuel transport infrastructure. During 2001-2006, primary energy supply increased 5.4 percent per year.