Energy Crisis in Pakistan: Socio-Economic Implications and the Way Forward

Abstract

Pakistan has been trapped by a blend of problems such as political chaos, economic turmoil, social unrest, religious extremism, rampant corruption, unemployment, pervasive poverty, child labor, moral degeneration, etc. The energy crisis has added fuel to the fire; it has created many more socio-economic issues for the whole nation. This research study has highlighted the impact of the energy crisis in Pakistan particularly on its society and economy. It has enunciated that the energy crisis has deteriorated the social setup in Pakistan as it has disturbed the domestic routines, institutional schedules, health facilities, transportation system and educational procedures. Similarly, the crisis has pushed Pakistan into an economic decline. Most of the local and foreign investors have migrated to other states due to the non-availability of electricity, gas and petroleum products. Resultantly, Pakistan is experiencing the lowest ebb of Foreign Direct Investment (FDI). Unannounced load-shedding has not only discouraged the industrialists but also has decreased the ratio of production- a severe setback to the rate of exports. Non-availability of energy has decreased the ratio of agricultural productivity that has a significant share in the gross domestic product (GDP) of Pakistan. The cottage industry has also fallen victim to the energy crisis. In this way, there is a restrained flight of foreign capital to the country. In the end, the study has recommended some policies which can be formulated and practiced by the ends of both the government and the public to discard the energy crisis.