IntroductionPakistan`sMinistry of Water and Power has developed an determined power policy which isdestined to meet the recent and imminent power need which are possible in nearas well as in far future. This audacious strategy will lead Pakistan on acourse of swift development both in social and economic sectors. Not only thatthis policy will however properly deliver the needed facts by the power sectorto provide the most immediate and economically bearable release for the problemof power crisis which the country is facing in the recent times.Thisdeed frames the energy policy facts and strategies made by the power sector.Underlining the crucial challenges and settlement of its major goals andbriefly enlightening the principles and also highlighting the main strategicplans to accomplish the increasing power demand.

This deed nor it explains onthe issues adjoining the operational strategy neither it lays out details ofany implementation plans.ProblemsPakistanPower sector is presently suffering from a number of problems that have led to avery crucial crisis the problems are: A vast supply and demand gap of the electricity far surpasses the current generation capacity leading to the gaps of 4500 to 5500 MW. This huge gap has led to the load shedding of 12 to 16 hours a day across the country. High level of dependency on the thermal fuel has lead the country to face very expensive generation of electricity i.e. RFO and HSD are mixed and are the biggest source of thermal electricity in Pakistan rated as PRs. 17 per unit for RFO and PRs.

23 per unit for HSD this has lead Pakistan to the non-affordable rates for the whole nation and its populace Poor infrastructure, mismanagement and electricity theft is resulting in the loss of 23 to 25 percent. Cost of delivering the electricity to the end consumer is estimated at PRs. 14.70 which means that the tax payer has to pay extra amount of PRs.2.70 per unit above the generation cost of electricity which is PRs.

12. The Ministry of Water and Power have estimated the total cost of delivering the electricity to the consumer is PRs.15,60 As the structure adopted the perspective that NEPRA proposed communication and dispersal loss of almost 16%, the theft alone is estimated to be costing the national exchequer over PRs. 140 billion per annum.

The aforesaid disorganizations and theft, which is accompanied by high cost of generation electricity are resulting in incapacitating levels of subsidies and circular debt. The reduction of these losses can us lead to substantial perfection in the viability of this sector, and could be used for the improvement and increasing the efficiency of the power system and its network in whole country.SolutionsInorder to achieve the long-term goals of the power division and meet itschallenges Pakistan`s Government has been working on following different goals: To construct power generation capacities which will be sufficient the fulfilment of the Pakistan current and future demands of power in a sustainable and smooth manner. To create a culture and environment of responsibility and power conservation for future generation. To make sure the generation of inexpensive and economically affordable electricity for the domestic commercial and industrial use by using the indigenous and cheap such as renewable energy resources like hydel wind and solar. To minimizes the loss in the distribution channel Promoter world class efficient and effective distribution lines Minimizes financial corruption across the power system. To improve the uncorrupted governance of the power ministry at both federal and provincial level by aligning the ministry matter of generation and distribution Acrystal clear strategic plan has to be articulated for every previously saidgoals in order to achieve the power sector aims.

Recommendations:1Pakistanhas set most valuable and important targets with respect to the demand andsupply gap, affordability of electricity, efficiency of the system (bothproduction and distribution), financial feasibility and ascendancy of thesystem. Extent to which policy can accomplish these aims will measure thesuccess of the policy and the nation’s ability to overcome the key problemseffecting the power sector.Demand and Supply GapItis recorded 4500-5000MW to 0 till 2025AffordabilityDecreasingthe generation cost from 12c/unit to 9/unit by 2025Efficiency Decreasesthe distribution losses by 25% to 29% by 2025Monetary valueIncreasethe collection of the bills from 85% to 95% by 2025Decision Making Decreasethe decision making process time which is mainly wasted in the ministry and todecrease the time frame from long time decision making to short timed and quickdecision making process1 NationalPower policy 2013


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