INTRODUCTION

The relationship between electricity and economic growth is highly correlated. Historically, it is proved that electricity consumption per capita can achieve improved economic/social development and faster economic growth.

Economy is made up of some core sectors which carry out the important economic activities, they heavily rely on power sector. So it is understandable that load shedding does not only hinder the core functioning of these sectors but it also sets back the whole economy.

Power sector is the major source of production of gross national product, foreign exchange, industrial, commercial and agriculture development. It is obvious to state that power crisis initiates not only a long term but many short term problems to the economy alongside hurting its peripheries. Which is a two way relationship.

A recent study on the cost of load shedding to Pakistan economy by Institute of Public Policy (IPP) estimate that the cost of load shedding to industry have reached a high level, equivalent to 10% or more of national sectoral value added or almost 2% of the GDP. The total cost of outages in the commercial/ service sectors is estimated in 2011-12 at Rs 472 billion, equivalent to almost 2.4% of the GDP. The national outage cost in agriculture sector is estimated at Rs 89 billion in 2011-12. The total outage cost to residential consumers in the urban areas of Pakistan is Rs 195.8 Billion in 2011-12.

Electricity is the most common source of energy for our economy. Energy and the growth/ functioning of an economy are highly correlated. Therefore sectors which carry out the important economic activities heavily rely on power sector. So it is understandable that loadshedding does not only hinder the core functioning that economic sectors but it also sets back the whole economy.

Considering the perfect timeframe of the condition of our economy this work holds a special importance because it is not only a highly attentive topic but much work is in progress from strategic and policy point of view.

General public is keenly waiting for the government to draw special attention towards this burning issue of power loadshedding and government is working towards its quantification and policy implementations. There is no doubt that constant and persistent power outages has rapidly increased over a period of time and it has immensely damaged all sectors of our economy.