Pakistan’s ageing grid network may be behind major blackouts

Fitch has observed frequent blackouts in the past six months.

Pakistan has experienced major blackouts across nearly the whole market in the past six months, which Fitch Solutions linked to its ageing grid network. 

Just last 23 January, Pakistan experienced a blackout, following a major blackout in October 2022, which affected southern provinces in the country. Fitch noted this is the fifth major blackout in the last three years. 

“We highlight that Pakistan has also been rationing power through scheduled power cuts for both urban and rural areas to ensure that its power resources are not depleted entirely,” the report read in part.

“We expect the power grid of Pakistan to be one of the region’s poorest performing, with transmission and distribution (T&D) losses averaging 14% of its total power generation over the coming 10 years.”

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Pakistan is currently facing challenges in the maintenance and expansion of its grids, as it requires loans from banks, such as the Asian Development Bank, World Bank, and the Japan International Cooperation agency. 

“We believe that the improvement of its grid network will continue to be slow despite the government’s plans for upgrades and expansions to existing infrastructure,” the report read in part. 

“This is underpinned by the government’s lack of funds, thus leading power developments to be focused on localised power generation facilities rather than connectivity and the expansion of transmission networks.”