Pakistan warns of intermittent outages for 48 hours after second major breakdown in months

A shopkeeper and workers wait for electricity at their electronic shop following a power breakdown across the country, in Karachi, Pakistan, Monday, Jan. 23, 2023. (Photo courtesy: AP)
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Updated 24 January 2023
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Pakistan warns of intermittent outages for 48 hours after second major breakdown in months

  • Most of Pakistan was plunged into darkness on Monday as an energy-saving measure by the government backfired
  • The outage caused panic and raised questions about infrastructural weakness, urgent need to upgrade an aging grid

ISLAMABAD/KARACHI: Pakistan’s energy minister said on Tuesday the country could face intermittent power cuts in the next 48 hours as nuclear and coal plants would become fully functional by Thursday after a malfunction in the national grid a day earlier left millions without power.

A power failure struck Pakistan on Monday morning after, as part of an energy saving move, electricity was turned off across the country during low usage hours overnight to conserve fuel but technicians were unable to boot up the system all at once after daybreak. The breakdown hit the entire country, from the financial capital of Karachi in the south to Peshawar city in the north.

Addressing a press conference on Tuesday morning, Energy Minister Khurram Dastgir Khan said electricity had been “fully restored” at all 1,112 grid stations across Pakistan but there could be more outages in the next 48 hours as authorities worked to turn on all power plants to full capacity.

“Limited load management will be carried out in the next 48 hours [in different cities] while industry will remain fully exempt from it,” the minister said, explaining that nuclear and coal power plants would require another 72 and 48 hours respectively to be fully functional.

Electricity supply had fully resumed at 0625 hours on Tuesday at all nine electricity distribution companies, with a generation of 9,704 megawatts, he added, and Pakistan had enough furnace oil to run its power plants as per demand.

“If there is power outage in any area from now on, it will be due to routine loadshedding,” he said, referring to scheduled outages Pakistan uses to conserve energy.

Khan said Islamabad’s supply of around 1,100 megawatts to K-electric, the main distribution company in Pakistan’s commercial capital of Karachi, would be fully restored soon.

A three-member committee had also been constituted, he said, to determine the source of the fault that led to the nationwide breakdown, including if there was “external interference or hacking”:

“We are making sure that no such incident happens again ever by ensuring safety and protection measures in our system.”

While Pakistan has enough installed capacity to meet its demand, the South Asian country lacks adequate resources to run its oil- and gas-powered plants. The energy sector is also heavily in debt and cannot afford to invest in new infrastructure and power lines, which often result in transmission losses.

This was the second nationwide blackout in three months due to a frequency failure in a perennially troubled national grid, raising questions about infrastructural weakness and the urgent need for upgrades. Another massive blackout took place in January 2021 and was attributed at the time to a technical fault in the country’s power generation and distribution system.

“We learned lessons from yesterday that we need to invest in the distribution system,” Khan said. “There hasn’t been any investment in improving these systems from the previous government.”

Imran Rana, a K-Electric spokesperson, said electricity supply to Karachi had improved after the restoration of the connection between the metropolis and the national grid.

“All K-Electric are currently active and the restoration of power on local level is also underway,” Rana said on Twitter. “However, limited load management can be carried out in the city to keep the system stable.”

Afshan Muddasir, a spokesperson for the Lahore Electric Supply Company (LESCO) which supplies to Lahore and other major cities in Pakistan’s most populous province of Punjab, said electricity was fully restored in Lahore by 1am on Tuesday.

“But we are doing load management as it takes some time to supply power in full capacity after a complete breakdown,” Muddasir told Arab News.

Lahore was currently getting half of its demand of 3,000 megawatts, she said:

“In such a situation, we will do load management at least for 48 hours till there is full capacity.”

Pakistan’s prime minister also apologized to the nation for the power outage that disrupted normal life across the country.

“On behalf of my government, I would like to express my sincere regrets for the inconvenience our citizens suffered due to power outage yesterday," PM Shehbaz Sharif tweeted. 

“On my orders an inquiry is underway to determine reasons of the power failure," he said adding that the probe will uncover who was responsible.


Pakistan’s transportation strike could cause economic losses of $1 billion, warn analysts

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Pakistan’s transportation strike could cause economic losses of $1 billion, warn analysts

  • Traders, textile mill owners say strike has cost $60 million per day in exports, port demurrages, detention charges
  • Analysts warn 10-day strike could threaten economic stability by deepening inflation, widening current account deficit

KARACHI: Pakistan’s ongoing transportation strike has the potential to cause economic losses of up to $1 billion and threaten macroeconomic stability in the country, a leading economist warned this week. 

Transport unions have been protesting against stricter enforcement of axle-load limits — legal caps on how much weight trucks can carry — as well as increases in toll taxes and what they describe as heavy-handed policing on highways and motorways.

The strike, which began on Dec. 8, is now in its tenth day. It has slowed the flow of goods between ports, industrial centers and markets, raising concerns over supply chains in an economy heavily reliant on road transport for domestic trade and exports. Trucking is the backbone of Pakistan’s logistics system, moving food, fuel, raw materials and manufactured goods. 

“We are expecting a tremendous impact of the ongoing transportation strike,” Ahsan Mehanti, CEO of Arif Habib Commodities, told Arab News on Tuesday. 

“I believe that the major impact could be to the tune of $1 billion. And the reason behind that is primarily Karachi being a business hub will be most impacted with the ongoing strike.”

While a section of the transporters, the All Pakistan Goods Transport Association (APGTA) called off the strike after successful talks with the Punjab government on Friday, the rest of the transporters have vowed to continue the disruption. 

Manufacturers and exporters from the textile industry, which earns Pakistan the highest amount in exports, have estimated their daily losses at more than $60 million. 

Kamran Arshad, chairman of the All Pakistan Textile Mills Association (APTMA), said these losses were on account of disruption to exports as well as demurrage and detention charges that affected traders are bound to pay at local ports.

“I have estimated disruption to as much as $60 million ($540 million for nine-day losses) worth of exports and demurrage and detention charges of up to $300 per container per day stuck at ports,” Arshad said.

Arshad lamented that the textile industry was facing a critical situation as raw materials and essential inputs were stuck at ports and not reaching factories. On the other hand, finished export consignments were also unable to reach ports, he said. 

“Containers are stuck at mills, ports and depots and inventories are building up,” the APTMA chief said. “And backlogs are growing by the day.”

Pakistan Textile Exporters Association (PTEA) Patron-in-Chief Khurram Mukhtar calculated Pakistan’s monthly average textile exports at $1.5 billion.

“An eight-day transport shutdown alone has already caused approximately $400 million in export losses, with severe supply chain disruptions on top,” Mukhtar said. 

’BIG HIT’ TO EXPORTS

Prime Minister Shehbaz Sharif has tasked his government to ensure sustained economic growth through an export-driven economy. However, Pakistan’s exports have shown far from promising results, falling by 15 percent to $2.4 billion in November, according to data by the Pakistan Bureau of Statistics (PBS). 

From the July-November period of this fiscal year, the country’s exports declined by six percent to $12.8 billion, while imports surged by 13 percent to $28.3 billion. This widened the trade deficit by 37 percent to $15.5 billion.

Arshad said other than financial losses, the trade industry was suffering from “serious reputational damage” when it came to international buyers due to the strike’s disruptions. 

“Missed delivery schedules result in cancelations and loss of future orders,” he told Arab News. “And once a buyer is lost, it is extremely difficult to regain their confidence.”

Rehan Hanif, president of the Karachi Chamber of Commerce and Industry (KCCI), agreed. 

“Our exports are already in trouble forcing us to run after dollars, so the exports are going to take a big hit,” Hanif explained. 

He urged the government to engage transporters and address their “genuine” demands immediately. 

Information Minister Attaullah Tarar and Finance Adviser Khurram Schehzad did not respond to queries sent by Arab News till the filing of this report. 

Hanif said the prolonged strike had created a huge backlog of cargos at local ports.

“They would have no space for more containers if this strike persisted for a couple of more days,” he said. “Pakistan’s daily losses from the strike are running in billions of rupees.”

POSSIBLE INFLATION SPIKE

However, Karachi Port Trust spokesperson Shariq Amin Farooqui rejected Hanif’s claims, saying that cargo “is coming and leaving” the country’s largest port smoothly. 

Pakistan’s inflation rose by 6.1 percent in November and is expected to fall in the SBP’s target range of 5 to 7 percent this financial year, which is ending in June. 

Pakistan’s current account balance reported a $112 million deficit in October from an $83 million surplus in September, according to the central bank. 

Mehanti warned the strike could pose dangers to Pakistan’s hard-earned macroeconomic stability.

“Inflation will be higher, and the current account deficit will be higher due to challenging economic situation,” he said.