There are several reasons for the accumulation of this debt; the biggest problem is the theft of electricity. [ref] Pakistan`s energy crisis: power politics. The Economist, 21 May 2012.www.economist.com/blogs/banyan/2012/05/pakistan%E2%80%99s-energy-crisis. [/ref] Many Pakistani elites and even part of the government do not pay their electricity bills. The legal and regulatory situation also prevents power companies from collecting invoices in certain parts of the country. As a result, Pakistani power companies currently recover only 76% of the money owed to them by electricity consumers. [ref] Jamal, Nasir. „Unpaid electricity bills amount to DS 286 billion.” dawn. 16.04.2014. www.dawn.com/news/1100237 [ref] Pakistan`s Minister of Water and Energy, Khwaja Muhammad Asif, acknowledged that the Pakistani government was one of the country`s largest power cuts. [ref] Govt one of the biggest power outages, says Khawaja Asif. Dawn, May 2, 2014. www.dawn.com/news/1103707. [/ref] As part of the recent severe crackdown, the Ministry of Energy has reduced deliveries to the Prime Minister`s house and to Parliament (among many government offices) because they weigh on their electricity bills.
[ref] Pakistan is reducing the Prime Minister`s flow to keep paying the bills” Reuters. 29.04.2014. in.reuters.com/article/2014/04/29/uk-pakistan-electricity-idINKBN0DF1DL20140429. [/ref] While many Pakistanis do not pay their electricity bills, others steal electricity by illegally going to the electricity grid. This theft, combined with an inefficient electricity grid and the resulting loss of transportation, means that Pakistan`s electricity producers are suffering huge financial losses. The solution to the energy problem is the first step towards strengthening the economy; Over time, a growing economy will attract more investment in the energy sector. Pakistan`s sensitive geographical position could become a strategic asset, as it would serve as a bridge linking the economies of Afghanistan and Central Asia to the wider Indian subcontinent. The people of Pakistan not only provide a large internal market, they also strengthen it with a young and entrepreneurial workforce. This gives Pakistan enormous potential, but can only be unleashed if the country finds a way to turn off the lights and hum the factories. Tax reform is essential and should be designed so that Islamabad receives more revenue to deal with the energy crisis. This electricity shortage is not expected to worsen until the coming summer months.
This is due to the fact that electricity demand peaks in sizzling heat, while hydroelectric production decreases when water flow in rivers decreases due to seasonal variations. This article will focus on the causes of the country`s energy problems related to the electricity sector and explore possible directions that Pakistan could take to improve its energy situation while dedicating its economy.  „No End in Sight for Pakistan`s Energy Crisis,” AFP, 8 August 2012, available from tribune.com.pk/story/419175/no-end-in-sight-for-pakistans-energy-crisis; and „Aid to Pakistan by the Numbers: What the United States Spends in Pakistan,” Center for Global Development, Study Group on a.S. Development Strategy in Pakistan, www.cgdev.org/section/initiatives/_active/pakistan/numbers. Pakistan should also make improvements in energy demand, for example by halving distribution and transfer losses by 30% (a target that will involve a severe crackdown on energy theft). Federal and provincial authorities should be more vigilant in keeping informed of the necessary maintenance and repair work on all production, distribution and transportation equipment to minimize leaks and other losses.