Mr. Gabriel Collins
Mr. Dawood Ghazanavi
Mr. Kristian Coates Ulrichsen
Ms. Zahra Jamal
I thank the Baker Institute for organizing this discussion on “Pakistan’s Energy and Water Security Landscape” and inviting me to speak.
The landscape is complex. Let me start with water. Pakistan is a water-stressed country because of a number of reasons. High water withdrawal, water losses, excessive use in agriculture, water logging and salinity, and recurrent droughts contribute to water scarcity. Both ground and surface water is depleting because of overdrawal and irrigation. Pakistan, as a lower riparian country, is dependent on the water flows from the north. A high percentage of water is lost or flows into the sea, unused.
Although under the Indus Water Treaty, Pakistan uses three rivers but our over-dependence on the Indus River creates additional vulnerabilities. Add to that population growth and stark challenges posed by climate change. Pakistan contributes less than 0.4 % of the global emissions but it is the 8th must vulnerable country to climate change. This past year, we have witnessed unprecedented devastation caused by epic floods preceded by forest fires, glacialmelt, drought and torrential monsoon rains. We incurred losses of $40 billion because of this catastrophe.
Our entire ecosystem is sensitive to extreme weather patterns causing landslides, cloudbursts and soil erosion. With the help of the International Financial Institutions, we have initiated reforms for water conservation, transition to modern agricultural technologies, reafforestation, waste water management and water metering. Governance is most important in this reform agenda.
Over the past 10 years, we have taken consistent steps to improve our energy security by building new dams, generating hydro, coal-fired, thermal (oil, gas, LNG and coal) and nuclear power. We have also invested heavily in alternate energy especially solar and wind power. This trajectory is not bad at all. However, we have some chronic problems which need to be resolved to prepare Pakistan for developing its economy at a faster pace and meeting expanding consumer demands.
Our problems include heavy reliance on energy imports and inadequate supplies, compared to the rising, phenomenal demand. In the past decade, we have commissioned more than 10 GW of new power generation and 1 GW of wind and solar power-based projects. Power and gas shortages were addressed. However, the gap is still very wide that needs to be bridged.
We need to further diversify our energy mix and decrease our dependance on oil and gas imports by focusing on indigenous resources. Alternate energy, especially solar and wind, is a growth industry in Pakistan and may well be a long-term viable solution for meeting our energy demands. But we can’t discard coal mining and coal-based power generation in the near future. A massive transition to renewables will take some time. We also have to upgrade our infrastructure to reduce energy and line losses and streamline governance to make energy supplies more efficient and affordable.
Over the years, we have been planning to increase production of alternate energy to mitigate the impact of climate change and to induct green technologies. This consciousness has become more acute after the floods last year. However, it cannot be a complete switch because transformer and transmission lines networks alone would require more than $100 billion; and we do not have that kind of money.
We are working closely with the United States to unlock a climate resilient ecosystem. Recent initiatives, namely, Green Alliance and Climate Smart Agriculture will benefit farmers and create a framework for conserving water, building small dams and improving yields of staple crops like wheat, rice and cotton.
We will leverage Pakistan-US partnership to transition to renewables, water conservation and efficient use of water. The United States has been our partner in the past. In the 1960s, the US was the symbol for the Green Revolution in Pakistan that increased the yields for our wheat and rice crops. It also helped us construct dams and generate hydro-power, especially by Mangla and Tarbela Dams, which conserve 10% of the water flowing through Pakistan, reduce flooding and enhance agricultural growth. Similarly, Gomal Zam Dam contributes to irrigation, food security and creation of livelihoods. In the recent past, the United States has also helped Pakistan build wind and solar power projects which have considerably enhanced our installed power. We have embarked on a path to build on these strong foundations between our two countries.
We are working with the US side to improve the efficiency of agriculture sector and water management. What we value most is the growing interest and exposure of the US private sector in these areas, independently, and through the US International Development Finance Corporation (IDFC).
In this context, import of US energy and agriculture technology as well as US-supported indigenous production of green technologies is of critical importance. We already have a nascent interface with the US in digital, agritech, which is poised to develop further. In addition, we have started work on university-to-university partnerships, especially between agriculture universities.
Thankfully, we have a framework for such engagement and cooperation. This very quarter, we are holding three important meetings on trade and investment, under bilateral Trade and Investment Agreement (TIFA), climate change and energy. All these dialogue processes will catalyze decision-making for better water management, diversified energy mix and requisite energy transitions in the future.
At COP 27, Pakistan played a pivotal role in the creation of a Loss and Damage Fund. We are working with multilateral organizations and institutions to help Pakistan in developing climate resilient infrastructure and disaster preparedness. This is necessary to save vulnerable countries like Pakistan and our planet.
Finally, a fair and just distribution of waters under the Indus Water Treaty is key to energy and water security and regional stability. Building a number of dams on the upper riparian parts of the rivers under Indian control erodes trust and creates myriad crises for Pakistan, which include flooding, droughts, water scarcity and disruption of energy supplies. The outstanding issues must be resolved quickly and definitively.
I thank you.
Washington D.C./Houston
January 26, 2023
