ISLAMABAD - The power generation in the country has decreased by almost 16,764GWh to 85,206GWh during July-March FY2017 from the generation of 101,970 during July-March FY2016.

Although the installed capacity of power generation has increased to 25,000MW from 22,900MW during corresponding period last year, however there was decline in generation as it remain 85,206GWh during FY2017 compared to 101,970 during July-March in FY2016, said Pakistan Economic Survey Report 2016-17. The reduction was mainly caused due to decline in hydro power generation and the closure of some expensive power generating units.

The decline in the share of hydro in electricity generation mainly occurred due to weather condition and less flow of water in rivers. The share of hydro in the total power generation was decreased from 34 percent in March-July FY2016 to 30 percent in March-July FY2017.

The survey further said that subsidy for power sector which were Rs464 billion (2.3 percent of GDP) in FY2012 has been consistently reduced to Rs217 billion (0.7 percent of GDP) in FY2016. Similarly, the report said that the consumption of electricity in the household increased from 46 percent in July-March FY2016 to 50 percent of July-March FY2017, while in agriculture and commercial sector the consumption was increased from 9 to 10 percent and 7 to 8 percent, respectively. However, the consumption in industries was decreased to 26 percent in July-March FY2017 from 27 percent of July-March FY2016. The decline in share of industry in electricity consumption is due to the use of own captive power plants on LNG by large industrial units.

It is worth mentioning that Ministry of Water and Power has shown significant improvement in both issues. Recoveries from end consumers reached 94.40 percent during July-March FY-2017, being highest in past ten years while transmission and distribution losses declined to 16.3 percent during the period under discussion. Regarding oil and gas sector, the report said that the domestic production of crude oil remained 24.2 million barrels during July-March FY2017 compared to 24.0 million barrels during the corresponding period last year. Indigenous resources of oil are not enough to quench energy thirst of a growing economy. As a result Pakistan has to import large quantity of oil and oil-based products from Middle East countries especially from Saudi Arabia.

The quantity of crude oil imported remained 5.9 million tons with value of $18.4 billion during July-March FY2017 compared to the quantity 4.2 million tons with value $18.3 billion during the same period last year. During July-March FY2017, share of oil consumption in transport increased to 57 from 55 percent during the same period last year, while share of oil consumption in power remained 33 percent during July-March 2017 which was 34 percent during the same period last year mainly because some of inefficient thermal plants remained closed due to overhauling during the period under discussion. Also gas being the cheaper source, there is continuous shift of power sector from oil to gas, the report added.