The Kalabagh Dam conundrum stands as a vivid reflection of Pakistan’s broader struggle with energy management and political indecision. Following the construction of Mangla and Tarbela dams, Pakistan faced an emerging energy crisis, exacerbated by poor governmental decisions and a failure to devise a coherent, long-term strategy. As demand for electricity surged and production dwindled, the country slipped into a prolonged energy shortage that impacted every facet of life, from industry to daily household routines. At the heart of this crisis lies the Kalabagh Dam, an ambitious project that, if completed, would have provided 5,000 megawatts of electricity and irrigation for 50,000 acres of barren land. However, despite initial momentum in the 1980s, political wrangling succeeded in derailing the project, leaving the country to grapple with an ever-worsening energy crisis. The halting of the Kalabagh project marked a turning point in Pakistan’s energy landscape. The failure to bring the dam to fruition signaled a lost opportunity to meet energy and water supply targets for the coming decades.
In its absence, the country has struggled to address its electricity shortfall, leading to widespread load-shedding that has affected every sector of society. From industry to agriculture and domestic consumption, the unrelenting power cuts have stifled economic growth and caused widespread frustration among the populace. Furthermore, Kalabagh’s abandonment occurred at a time when hydropower resources were plentiful but untapped, leaving Pakistan heavily dependent on thermal power production, which relies on costly imports of oil and gas. Today, the consequences of this shift towards thermal power are dire. Over 67 percent of Pakistan’s electricity is now generated from oil and gas, placing immense strain on the country’s foreign exchange reserves due to the high cost of fuel imports. This dependence has not only led to a financial burden but has also driven up electricity costs for ordinary consumers. Just a few years ago, the price of electricity stood at a manageable 15 rupees per unit. Now, amidst soaring inflation, the cost has ballooned to over 60 rupees per unit, placing a crushing financial burden on the average Pakistani.
The skyrocketing energy prices have made electricity affordability a national issue, particularly as many households struggle to pay their bills and businesses find it increasingly difficult to remain profitable. In response to this growing crisis, Prime Minister Shehbaz Sharif and his administration have sought to negotiate with Independent Power Producers (IPPs) in an effort to lower electricity tariffs. These discussions have resulted in a decision to shut down five IPPs, with ongoing talks aimed at securing further reductions in electricity costs. While these negotiations provide a glimmer of hope for lowering energy prices in the short term, they do not address the deeper structural issues that have plagued Pakistan’s energy sector for decades. The solution to Pakistan’s energy crisis lies not only in negotiating lower prices with IPPs but in fundamentally rethinking the country’s energy generation strategy. The Kalabagh Dam may have been lost to political contention, but the potential for hydropower generation remains vast.
Pakistan’s rivers and waterways offer an abundant and cost-effective source of renewable energy that could reduce the country’s reliance on expensive thermal power plants. By investing in hydropower projects and other forms of renewable energy, Pakistan could secure a stable, sustainable, and affordable energy supply for future generations. The urgency of this shift cannot be overstated. Pakistan’s dependence on thermal power is not only financially unsustainable but also environmentally detrimental, contributing to the country’s carbon emissions and exacerbating the global climate crisis. Hydropower, on the other hand, offers a clean and renewable alternative that aligns with the country’s long-term environmental and economic goals. By prioritizing investments in hydropower and other renewable sources, Pakistan can begin to relieve the strain on its energy sector and provide its citizens with affordable electricity.
In the face of rising inflation, electricity shortages, and a growing national debt, the Kalabagh Dam stands as a symbol of lost opportunity. Yet, Pakistan’s energy future does not have to be defined by this failure. By shifting its focus towards sustainable energy solutions and embracing the untapped potential of its natural resources, the country can chart a course towards energy independence. This transition will not be easy, and it will require political will and coordinated efforts at all levels of government, but the rewards—affordable electricity, economic growth, and a more secure future—are well worth the effort. The Kalabagh Dam may be a project lost to time, but its lessons remain clear: political wrangling and short-term thinking cannot be allowed to undermine the long-term interests of the nation. Pakistan’s energy crisis requires bold, strategic decisions, and a commitment to harnessing the power of its natural resources. Only then can the country break free from its dependence on costly fuel imports and secure a stable and prosperous future for all its citizens.
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