Muhammad Saleem

The government's plan to auction surplus electricity to industries can drive industrial growth, create jobs, and improve the economy.

Ijaz Ahmed, an industrialist, told WealthPk that without access to an affordable and smooth supply of electricity, no industry can perform at its maximum potential. He said that electricity is the lifeblood for the existence of industries, particularly for the textile sector of Pakistan.

He pointed out that, nationally and internationally, challenges are constantly emerging, and nations are finding ways to maintain their hold on clients by providing them efficient services. However, in Pakistan, he said, we are still struggling for reliable and affordable electricity.

It's commendable that the government is planning to auction surplus electricity to industries. This approach will open doors for industrialists to expand their business and create more jobs. However, he cautioned, the government must keep a close eye on electricity prices and ensure affordability.

“The government must leave no stone unturned to strengthen the national economy, create jobs, and attract foreign investors. Without industrial expansion, we cannot battle inflation and unemployment,” he said.

He said the textile sector is energy-intensive, and it's a matter of grave concern that unlike their regional business rivals, they are scrambling for affordable electricity. Expensive electricity is creating hurdles for exporters in the international market, rendering them uncompetitive.

Developed nations are pulling out all the stops to embrace the latest technologies to stay ahead of the curve. Our industrialists are also capable of competing with their international rivals, but this is not possible without government assistance. He asserted that affordable electricity can help them maintain their position in the global market. By availing affordable electricity, he said, investors will start investing in industry, which will enhance manufacturing facilities and production capacity.

Salamat Ali, a garment exporter, told WealthPk that the government is striving to stimulate industrial growth so it can lessen its dependence on loans. He said that cheap electricity will help boost production and competitiveness. However, he emphasized the importance of the government consulting with relevant stakeholders when implementing this strategy. He noted that the bureaucracy has been creating policies and compelling the business community to comply without considering their input. “This top-down approach is a recipe for disaster, leaving no space for businessmen to raise their concerns,” he added.

Billions of rupees have been invested in alternative energy sources, which are not a perfect substitute for the grid-transmitted electricity. However, rates for grid electricity are high, putting a strain on the business fraternity.

He said the pricing strategy and how efficiently the auctions are managed will be the key to the success of the project. Besides, it will also be a daunting task for the government to ensure its equal distribution among different sectors and regions. Haji Salamat said that it is the need of the hour to revise contracts with Independent Power Producers (IPPs), claiming that they are not acting in the best interests of the country and its economy.

He urged the government to devise a plan for generating electricity through hydel, wind and solar power, which he noted are significantly cheaper alternatives. Additionally, he suggested establishing a regulatory framework to prevent monopolistic practices and ensure fair competition in the future. He said that the regulatory framework would create a level playing field for all energy producers.

*********************

AI generated images?? （如果是，不建议使用）

Credit: INP-WealthPk