The marginal increase in the GDP between 2009-2010 was not due to any real increase in economic activity rather it reflected the impact of substantial increases in the international price of Pakistan’s largest export item, textiles. Otherwise the impact of the economic crisis is clear and economic growth may continue to nose dive and may not stabilize unless a lasting solution to the energy crisis is found for the country’s 180 million residents. 
Apart from its impact upon Pakistan’s economy, the energy crisis has destabilized the routine of every day life for the vast majority of Pakistanis. It affects their behavior and psychology due to their inability to carry out essential daily activities ranging from cooking to commuting to work.
This situation cannot be left unattended. Fuel availability must be expedited, particularly natural gas, in order to arrest the free fall of Pakistan’s economy and to bring solace to its people. The indigenous production of natural gas cannot be increased overnight and the teetering economy coupled with an unstable regional geopolitical situation does not bode well for the success of cross border gas pipelines. Therefore, Pakistan must go for imports of LNG and on a fast track. If Pakistan is unable to bring LNG into the country over the next 3 to 4 years, the whole economic structure built around the natural gas industry will fall into ruins.
Today’s unenviable situation was not created overnight rather it is the cumulative effect of inconsistent and inept energy policies pursued for decades. Successive governments kept on discarding the policies of their predecessors on the basis of political expediency. On this account numerous promising projects have been shelved without looking into their merits. Two examples may suffice to help understand the impact that political rivalries have had on the economic development of the country. The government of the Pakistan (GoP) Muslim League led by Mian Muhammad Nawaz Sharif initiated the privatization of public sector companies including gas and electricity utilities in the early 1990s which was halted by the succeeding government of Benazir Bhutto’s led Pakistan People Party.
One of the surprising initiatives taken by the Bhutto government was the introduction of Independent Power Producers (IPPs) in 1993 to overcome electricity shortages. This was surprising because the Buhtto government was largely skeptical of the role of the private sector yet she recognized the need for IPPs to fill Pakistan's electricity gap. Though the projects could not be thrown out unilaterally by the succeeding government of Nawaz Sharif due to internationally binding contracts he left no stone untouched to scare off future investors by making life difficult for the IPPs. They were dragged in the courts on the allegation that these power generation projects were unduly favorable to IPPs due to the corruption and favoritism of the outgoing government. (Of note is the fact that the GoP did not have sufficient evidence to prove corruption in the project agreements.)
One of the main reasons behind today’s electricity crisis in Pakistan is the then hounding of the IPPs. Every martial law regime has brought its own economic vision of the country totally discarding the policies of the toppled civilian regimes. Throughout the 65 year history of Pakistan there have been military takeovers of the government four times in total. One of the common allegations against the toppled civilian government in each of the military takeovers has been the pursuit of failed and rather dangerous economic policies. Thus the first step of every martial law regime has been to discard all of the economic policies of the previous government and to introduce its own economic cycle afresh.
There has been no clear direction for increasing resource availability, and the efficient utilization of available resources. Myopic vision has kept policy makers blind of the creeping gap between the country’s energy supply and demand profile. Pakistan’s energy supply mix remains dominated by oil and gas with little contributions from hydroelectricity, coal, and nuclear energy while alternate fuel sources like wind, bio-gas and solar energy are glaringly absent. The composition of Pakistan’s primary energy supply for 2010-11 is given in Table 2 below. More
