Abstract
Pakistan is in a deep power crisis since 2008 which the government is trying to control by adding new generation capacity. This strategy, however, will not be helpful in the short-run. The only way, the power crisis can be controlled or mitigated in the short-run, is to efficiently utilize the available resources. Government lacks such a strategy at this point. The paper provides such a strategy by setting up a power sector model with multiple modules of generation, transmission and distribution. The model provides an efficient way of utilizing the available resources and can be used to perform simulations at different stages of the supply-chain. The results of model show that, if the given resources are utilized efficiently, the power generation increases by 3222 GWh or 5 percent of the current output and the revenue increases by $945 million or 12 percent. The extra generated power decrease the cost of power production by 0.52 ¢/KWh cents and reduces the power load-shedding for 2–3 h. These outcomes can significantly relieve the sector and the people of Pakistan. The results of the model have important policy implications on working of the sector and circular debt reduction.
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