How lack of electrification affects the society and economy of Pakistan

As many as 50 million people in Pakistan may still live without connection to the electric grid. Pakistan also has some of the world's worst power outages.

Electrification is associated with a broad range of social and economic benefits in Pakistan, including higher income and expenditures, better health and education outcomes for children, and increased women's labor force participation and decision‐making power.

But still, as many as 50 million people in Pakistan may still live without connection to the electric grid. Pakistan also has some of the world's worst power outages.

The electricity deficit in Pakistan is attributable to both lack of investment and inefficiencies in every link of electricity supply.

Using data from a nationally representative two-period panel survey, this paper by World Bank presents the first empirical evidence on the cost of unreliable electricity supply to households in Pakistan.

The results show that lack of connectivity and poor reliability may be costing the country at least $4.5 billion (1.7 percent of gross domestic product) a year.

Addressing the problem requires energy sector reforms to correct regulatory and institutional distortions in the gas and electricity sectors.

The full research paper is available on World Bank's website.