‘Crisis’ has been coined by a Greek word which means ‘decisive moment’. Crisis is declared when something has gone to a level where an action must be taken to avoid complete disaster or breakdown. ‘Energy Crisis’ happens due to several reasons, some of which are: misallocation of resources, incompetency of exploration sector, increasing price of oil in international market, power wastage, less dams, little deployment of unconventional energy resources, etc.
Energy production of any country is the measure of its economy. No country can achieve high economic growth without producing sufficient energy. Production of energy reflects industrial output, agricultural output, transportation, etc. Electricity load shedding in Pakistan is alarming. When energy supply of an industry is restricted, its output decreases and cost of production increases due to which many industries shut down leaving labour unemployed. The upsurge of inflation is due to energy shortage in Pakistan. Number of people living below poverty line is increasing due to unemployment and inflation, both of which are by-products of energy crisis.
As the high production cost decreases rate of output, the exports of Pakistan are continuously declining. Our trade deficit is increasing which eventually will result in unstable economy. Like industry, agriculture is heavily dependant upon electricity and oil. Our crop production has failed to achieve its target and this failure led to the creation of another crisis, which is ‘Flour Crisis’. Increase in the prices, and availability of oil and natural gas directly affects transport. Expensive commercial transport further increases cost of a product which decreases ‘purchasing capacity’ of people, which means depreciation of national currency.
Severe load shedding, increasing trade deficit, high inflation, unemployment, depreciation of rupee, etc. are reducing the living standards of...