Muhammad Saleem

Industrial businesses are struggling for survival in Pakistan, as expensive electricity has made it too difficult for them to run smoothly. This situation is denting the economy, creating a plethora of problems in different sectors.

Talking to WealthPK, Dr. Ahmed, who is attached with a private sector university, said Pakistani entrepreneurs were eager to do their part in strengthening the national economy for which they needed a level playing field. However, he noted that the surging prices of electricity were hindering their progress. He said industrial growth was impossible without the latest infrastructure, skilled labour, affordable energy and raw materials. The industrialists have been running from pillar to post for a couple of months, pleading with the policymakers to reduce the electricity prices. To date, only hollow slogans are being raised by the government about price reduction. Affordable electricity, in particular, plays a significant role in the competitiveness of Pakistani products globally. Our exporters will have to struggle a lot to compete with international businesses if they produce products with high energy costs.

“High energy rates drive up the production cost and hit business strategies, making our exports less competitive in the international markets and leading to a decline in foreign exchange for Pakistan. This situation will ultimately result in a decrease in domestic and foreign investment, economic slowdown and unemployment,” he opined. “We must face the fact that an affordable electricity is crucial for the revival of industrialization – a major driving force for earnings and job creation. To outclass our business rival countries, we need to reduce the electricity prices by adopting alternative energy sources.” He explained that when our industrialists have access to an affordable energy, they can opt for expanding their investment, enhancing their productivity and creating more jobs. “Our economy is currently on a shaky ground; we need long-term investments to increase revenues,” he suggested.

Bilal Ahmed, a renewable energy entrepreneur, told WealthPK that with the passage of time, people came to know about the importance of green energy, which was crucial for sustainable economic growth. He warned that in future climate change will impact every segment in Pakistan, and the current electricity transmission system will also face the consequences. “We have to say goodbye to the independent power producers (IPPs) that rocked the boat for the industry and businesses. The high energy costs have also taken a toll on the lives of ordinary people, as they are sacrificing their health and food just to pay hefty electricity bills,” he added. He said the volatile prices of fossil fuel and the soaring demand for energy were paving the way for a transition to renewable sources like solar and wind.

He emphasized that renewable resources were imperative for the economy and the wellbeing of the general public. He suggested that the government offer incentives to the industry and reduce interest rates for renewable installations. He explained that when businesses invest in solar and wind projects, it will create more jobs and generate affordable energy, helping the industrial sector to revive. A prime example of renewable energy adoption is rooftops in urban areas and fields in rural belts, where people have started installing solar systems after sensing high electricity rates and shortages. Dr. Ahmed stressed the need to modernize Pakistan’s current transmission system to maximize the potential of renewable energy sources.

Credit: INP-WealthPk