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Infrastructural Constraints on Energy Development: The Case of Pakistan

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Journal article

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Since the mid-1970s, energy planning in Pakistan has focused on 1 reducing the elasticity between economic growth and energy demand and 2 sharply increasing energy investment to augment domestic sources of supply. The Sixth Five-Year Plan 1983-1988 allocation for energy was 38 percent of total public-sector outlays. This represented a 200-percent increase over the achievements of the Fifth Plan. The Seventh Plan period 1988-1993 is continuing this trend, with energy-sector investments accounting for nearly 50 percent of the public investment program in fiscal year FY 1989 and 45 percent in FY 1990. Given the present and projected shortage of energy, the emphasis on shifting resources towards expanding supply is clearly justified. However, the large percentage of a small public investment program is both insufficient and unsustainable because of conflicting demands from other sectors. In the short run, reducing the income elasticity of energy demand will be essential to reducing energy shortages. In this regard it is encouraging that other developing countries have been successful in loosening the link between growth and energy consumption without harmful effects upon growth Because of its current budgetary constraints, the Pakistani government must make sure it is investing in the areas most productive in increasing the supply of energy. Clearly, increasing the supply of energy will involve not only investing directly in the energy sector, but also in a number of supportive infrastructural undertakings. Given this necessity, the purpose of this paper is to determine which supporting areas may have inhibited development of the sector to date. Have deficient infrastructural facilities caused energy output to lag behind the needs created by the countrys recent growth If so, what types of infrastructure are in short supply What are the implications for government policy

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  • Economics and Cost Analysis
  • Government and Political Science

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