Energy security has been a critical issue and a dominant driver of regional geopolitics in the India- Pakistan sub-region. Cross-border electricity sharing between these two countries could act as an effective confidence building measure.
A World Bank Study states that “trust building around electricity trading is possible even between countries with a history of conflict”. Better economic relations and interdependence would strengthen constituencies, and possibly create a new set of positive stakeholders. Commercial and economic logic would be able to marginalise spoilers and minimise the impact of adverse political developments.
Energy demand is steadily growing and a protracted supply deficit could even lead to instability and conflict. To overcome a power deficit, the government of Pakistan has announced a power policy that focuses on encouraging private investment. It aims to increase the installed energy capacity to 48,284 MW in 2025. Read more