Iran war: Pakistan plans two hours of daily power outage to dodge rising bills

Pakistan will suspend electricity supply for about two hours during the evenings, an effort to manage the cost of power as the Iran war further shakes the energy-poor country, reported Bloomberg on Wednesday.

Demand raises significantly between 5 p.m. and 1 a.m., due in part to reduced hydropower generation, the Pakistani government said in a statement on Wednesday. Potential gaps would have to be met through fossil fuels that have become more expensive after the Iran war disrupted flows plunging the region into an energy crisis.

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Managing load during the critical period would prevent power prices from significantly increasing for households. The government has instructed distribution companies to keep consumers informed about any scheduled outages, and avoid any unplanned power cuts.

Pakistan's reserves stood at $16.4 billion on a gross basis at the end of March. That is not enough to cover three months of basic imports, but JPMorgan says the amount is actually negative if the central bank's foreign currency liabilities are factored in.

Former Pakistan central bank governor Reza Baqir, who now advises governments in debt distress, says the conflict has hit vulnerable countries from almost every angle.

Petrol prices there were just hiked for the second time and schools closed for half of March. Meanwhile, government departments were on a four-day week - and now banned from buying new furniture or air conditioners.