During a session titled “Powering Pakistan’s Future: Strategies to Address the Energy Crisis,” jointly organized by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and Business Recorder, experts emphasized the critical need for energy conservation and industrialization to combat Pakistan’s energy challenges. Finance Minister Muhammad Aurangzeb graced the event as the chief guest.
Dr. Fiaz Ahmed Chaudhry from Lahore University of Management Sciences (LUMS) highlighted Pakistan’s substantial spending of $70 billion on debt servicing for additional capacity charges. He stressed the importance of accurately estimating energy demands, especially considering the significant gap of 16,000 to 18,000 MW between demand and supply during winter months.
Dr. Chaudhry proposed implementing energy-efficient practices, addressing leakages, and phasing out inefficient captive plants. He underscored industrialization as a key strategy to tackle capacity charge issues.
Vice President FPCCI Asif Inam criticized the high energy tariffs, labeling them as a burden on industries and questioning their beneficiaries.
Chairman of All Pakistan Textile Mills Association North Zone Kamran Arshad emphasized industrialization as a means to lower energy costs, citing examples from Bangladesh and India. He stressed the importance of competitive energy rates to boost exports.
Former Chairman of NEPRA Tauseef H. Farooqi outlined flaws in the energy sector, including dollar-based contracts, unrealistic demand projections, and heavy taxation, noting that the actual cost of electricity is Rs29 per unit with a 47% tax.
FPCCI Vice President Abdul Mohamin Khan proposed offering concessional electricity rates to industries, while Chairman of Oil Marketing Association Tariq Wazir Ali advocated for a reevaluation of the Turnover Tax policy, seeking a reduction to 0.25% to ensure industry profitability and viability.
These experts urged swift government action to address these concerns, fostering a conducive business environment for the oil industry and overall economic growth in Pakistan.
Story by Hassan Abbas
