LAHORE:Energy experts and rights activists have demanded of the government to promote alternative energy resources. For this purpose, they recommended devising a policy framework for the increased use of renewable energy at the household level. They were speaking at an online webinar “Impact of Rising Energy Prices on Households” organized by The Knowledge Forum (TKF) under the platform of the Renewable Energy Coalition.

The experts included Dr. Qais Aslam, Professor of Economics at the University of Central Punjab Business School in Lahore; Dr. Sofia Anwar, Dean of Management and Administrative Sciences at the Government College University, Faisalabad and Dr. Khalid Waleed, a renowned scholar in the field of Energy Economics, specializing in the integration of Energy and Environment into Economic policy.

The speakers pointed out that Pakistan is currently facing record-high inflation at 37%, up from 9.5% in 2021. For household consumers, the inflation translates into 50% higher Year-on-Year prices of essential items including food, beverages and transport.

It was noted that while these higher prices stem from a volatile exchange rate in an import-dependent economy, the average price of essential items such as electricity, fuel and transport have already been escalating in the past four years.

Speaking on the occasion Dr. Qais Aslam said the energy in Pakistan is neither clean nor cheaper nor it is environmentally friendly. The cost of doing business and consumption cost is very high in the country, he said.

According to him, Pakistan has an untapped potential for electricity generation of 100,000 MW from Thar coal, 150,000 MW from wind and 50,000 MW from solar daily. Pakistan mostly relies on imported fossil fuel which is over 60 per cent of its electricity. Every rupee invested in the energy sector produces electricity worth only 25 paise. he said. Line losses are too high in Pakistan, he added. The first 100 unit cost of electricity is now Rs 13 per unit, which has become unaffordable, he said. Solar is the only affordable solution, he said.

Dr. Sofia Anwar, Dean of Management and Administrative Sciences at the Government College University, Faisalabad spoke on the effect of price increase on energy consumption. She said energy usage is not a luxury but it is a basic necessity. But the increased cost of energy in Pakistan has increased pressure on the cost of other facilities like education and health.

This caused a shift in the lifestyle of the common people in Pakistan, she explained. Pakistan is importing oil which is becoming cost. The use of oil in transportation has increased manifold as compared to other consumers. Household is using a very meagre portion of oil. However, she said households are using gas the most, which is over 20% of total gas in Pakistan. She said the cost of generating electricity has increased by manifold. Currently, we are generating most of our energy through thermal power plants, which are using imported fuel.

Dr. Khalid Waleed spoke about energy usage in Pakistan. He said in the country the use of primitive biofuel is still large as the majority of the population does not have access to natural gas and costly imported fuel. He said biofuel contributes a total of 41.4 per cent of total energy consumption. Animal dung, firewood, agriculture waste is being used as biofuel, which causes deforestation and environmental degradation. The natural gas consumption in Pakistan is 20.9 per cent, whereas oil contributes 19.3 per cent and coal 7.9 per cent. Quoting Asian Development Bank data, he said natural gas reserves in Pakistan will deplete 70 per cent by 2030. He underlined the need to devise an integrated policy in the energy sector for making energy affordable. He said households’ consumption of clean energy must be increased.

According to him in Pakistan, the share of clean cooking fuel has decreased to some extent. Till 2013 the percentage of use of clean cooking fuel was almost the same in India and Pakistan, but since then it is declining in Pakistan, whereas it has increased in India. China and USA are the most users of clean cooking fuel. The civil society activists asked various questions from the key speakers on the occasion.

Sanaa’i Muhammad, Coordinator of Renewable Energy Coalition Pakistan and Zeenia Shaukat, Director of The Knowledge Forum also spoke on the occasion.