Energizing Karachi: Uncovering solutions for long-standing shortfalls

Abstract

This study investigates Karachi’s enduring energy shortfall, which has plagued the city for decades. By analyzing monthly time series data from January 2009 to December 2021 using Pearson correlation, Vector Auto Regression (VAR), and Tobit model, we aim to draw conclusions. Our findings underscore a significant disparity btw energy demand and supply across various sectors of Karachi, including residential and industrial consumption. This imbalance leads to frequent load shedding, exacerbating the city’s challenges. Importantly, our research suggests that conventional methods of load shedding fail to empirically alleviate this shortfall. Furthermore, we ascertain that the shortfall significantly influences the unit prices of energy for households and industries alike.