Managing the shock

Published
1

THE energy shock Pakistan faces calls for immediate demand management. Houthi attacks on Saudi energy infrastructure and shipping have strained an already fragile supply chain by disrupting oil and gas flows through the Strait of Hormuz and the Red Sea.

Global oil prices have been pushed to their highest level since May. A net energy importer, Pakistan has felt the impact directly: petrol has risen to Rs384.34 per litre and high-speed diesel to Rs415.83. Pain at the pump is pushing people to the edge. Moreover, higher global oil prices are feeding into the import bill, transport costs and inflation, adding further pressure on financially strained families.

RLNG prices have also risen. The government says greater use of domestic energy sources has helped keep power plants running. Domestic resources accounted for 72pc of electricity generation in August. Without more domestic gas for power generation, we could have faced another hour of loadshedding and an additional Rs10.6bn in consumer tariffs. That may provide some respite but is not a reason for complacency.

Energy conservation must start now. That does not mean shutting the country down. A nationwide lockdown would cost businesses working hours, deplete workers’ income, and hit daily-wage earners hard — a burden that an economy already struggling to generate growth and jobs cannot easily absorb. What the government should pursue, instead — at least for now — is targeted conservation: measures that cut avoidable consumption without halting productive activity. Schools could shorten operating days to ease transport and electricity demand. Government offices and private employers can be encouraged to work from home where practical. Markets, especially in major cities, could close earlier to cut late-night transport and commercial power use. Malls, offices and commercial buildings should face reasonable limits on unnecessary lighting and cooling.

Government departments need to lead by example rather than leave conservation to households alone. Provinces must follow suit so that the effort is not fragmented. The prime minister’s fuel relief package for motorcycle and small car owners may cushion a small part of the population, but subsidies cannot fix a supply shock, and protecting fuel consumption through the budget only gets costlier as global prices climb. The priority now is to protect incomes and essential economic activity while cutting non-essential demand.

The larger point is that Pakistan cannot keep meeting every external energy shock by either subsidising the cost or shutting down activity. Building domestic solar energy availability, grid efficiency, storage capacity and public transport is what actually reduces this vulnerability over time. Meanwhile, the choice is not between business as usual and a lockdown. There is a lot of room between the two. And the government needs to use it: conserve early, cut waste, keep the economy running.

Published in Dawn, September 17th, 2026

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