Blackout in Pakistan: Hormuz supply crunch triggers electricity shortage in Islamabad

The Middle East conflict is starting to dim lights in Pakistan. Disruptions at the Strait of Hormuz have hit the globe's oil pipeline, straining energy supplies across the world and pushing countries to switch on their power saver mode. For Pakistan, the effect has reached common people, with more people working from home and now facing electricity shortages. On Wednesday evening, the country recorded a power deficit of 4,500 megawatts, at a time when consumption is typically at its highest, the country's power ministry told Bloomberg. This gap is only 25% of the total demand.The electricity cuts have been driven by the sharp squeeze in energy supplies to Islamabad. The ongoing war in the Middle East has effectively disrupted the Strait of Hormuz, and attacks in early March forced Qatar to suspend exports from the world’s largest LNG facility, further tightening supplies for the country. According to officials cited by Bloomberg, power cuts have worsened in recent days. In some areas, outages during peak evening hours now last over two hours, partly due to lower hydropower generation. Reports from across the country suggest that in certain regions, electricity cuts are lasting much longer, up to 14 hours, with rural areas facing the worst disruptions.And its not just homes, electricity cuts have also hit industrial activity with shortages extending upto 8 hours. Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce & Industry, said businesses are struggling to cope with the outages. “Industry is facing around eight hours of loadshedding. It will affect both exports and local manufacturing,” he told the agency.Pakistan depends almost entirely on Qatar for its LNG imports, which are crucial for electricity generation. With supplies disrupted, authorities are weighing the option of turning to the spot market, although higher prices pose a challenge. People familiar with the matter said the fuel would only become viable if global prices ease.Meanwhile, the government is also focused on stabilising its financial position. On Wednesday, it announced securing $3 billion in financial support from Saudi Arabia, which could help meet a loan repayment obligation to the United Arab Emirates. The energy crunch has now entered its seventh week and continues to intensify. The last round of peace talks between the US and Iran ended in a stalemate, though early signs of easing tensions are beginning to emerge. The dip comes amid growing expectations of diplomatic progress, as the White House has expressed optimism about reaching an agreement to end the conflict with Iran. However, it also warned that economic pressure on Tehran would increase if it continues to remain defiant.