Economic growth and industrialization in a globalized world today is inextricably linked to the continuous availability, access, diversity and modernization of energy resources. Ensuring a secure and safe supply of energy, both from domestic and foreign sources, constitutes a core foreign policy pillar of both emerging and established global powers today.
Energy security establishes a frame work which links the issues regarding energy supplies with foreign and national security policy. This link is all the more relevant and provides the requisite flexibility for a state to manage both the crisis and opportunities in this regard. Placing the formulation of energy policy in security domain comes with the benefit of establishing linkage between economic development and national survival.
Pakistanis facing an acute crisis of energy and consequently adverse economic situation. The energy crisis is effecting cross spectrum dimensions of society and economy. The crisis have resulted in a number of substantive protests, some of them being violent, in the back drop of power shortages, limited availability of transport fuel such as compressed natural gas and petrol and price hikes.
The industrial sector is also struggling to meet its production demands and improving the consumer output required to sustain a minimum level of sustainability. Energy crisis has slowed the industrial output and resultantly the already limited manufacturing base. Moreover, the energy crunch has also put restraint on Pakistan’s economy to compete globally in an era of increasing globalization.
In an environment of bleak global economic outlook in the after math of prevailing financial crisis, the problem is compounded given the lack of competitiveness. The much touted Pakistani narrative of “market access” is exhausted by the fact that the energy crunch has limited Pakistan’s capacity to compete with emerging and established economies. So market access will not bring desired output unless the domestic economic front is strengthened in Pakistan.
There also exists an international dimension to Pakistan’s energy crunch.Pakistanis subjected to international diplomatic and political pressure, by the select few, over its efforts of diversification of its energy imports. The case in point isIran–Pakistangas pipeline (IP). International sanctions on Iran and subsequent diplomatic pressure on Pakistan to be a process of Iranian containment have exacerbated the energy crisis and increased the uncertainty of its economic future. More
