Cash-strapped Pakistan cuts power to households on fuel shortage

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Pakistan cuts electricity into the household and industry as a country that lacks money can no longer buy coal or natural gas from abroad to trigger its power plant.

The South Asian nations struggled to get fuel from the spot market after the price of liquefied natural gas and coal soared to record the last month because the war in Ukraine worsened the lack of supply. Pakistani energy costs more than doubled to $ 15 billion in nine months ended in February from the previous year, and it could not spend more for additional shipping.

About 3,500 megawatts of power capacity was closed due to the shortage of fuel on April 13, according to a Twitter post by Miftah Ismail, which was chosen as Minister of Finance by the New Prime Minister Shehbaz Sharif. The same amount is offline because of technical errors, he said. More than 7,000 megawatts represent almost one-fifth of the total power capacity, according to Tahir Abbas, the Head of Research in Arif Habib Ltd. in Karachi.

Electric crunch makes it difficult for economic challenges that have been difficult for Sharif – who have not appointed a Minister of Energy – after former Imran Khan’s leader was overthrown last week after the period of political turmoil. A relatively poor nation that is very dependent on energy imports, Pakistan has been hit, especially with the increase in fuel costs.

Pakistani long-term LNG suppliers canceled several shipping scheduled for delivery over the past few months, the more fighter supply. The nation released a tender on Sunday to get six LNG cargo from the spot market, but it could end up with the cost of the government of hundreds of dollars if fully given.

The Pakistani situation will not change in the near future because the global dynamics are still the same,” said Samiullah Tariq, a research head in Pakistan Kuwait Investment Co.. “There is forced blackouts to deal with energy shortages.”