The decision to end gas supplies for captive power plants is a significant step towards energy reform. While some industries have raised concerns, this move is necessary to ensure affordable and efficient energy for all.
This shift is part of a structural benchmark under the IMF program and aligns with recommendations from the IMF and World Bank. Redirecting gas to the most efficient generators and transitioning industries to the national electricity grid will enhance energy efficiency, potentially reducing the national power tariff by Rs 2 per unit—a significant saving.
Pakistan’s energy system is burdened by fixed capacity charges, which rise as grid demand falls. Reintegrating industrial users into the grid will mitigate these charges, easing costs for households. Expanding and improving grid connections for industries will also lead to more reliable power supplies in the long term.
In the current economic climate, timely implementation of these reforms is critical. Delays would hinder progress and jeopardise vital international support. This balanced approach can ensure reliable power for all while maintaining Pakistan’s economic stability.
ABDUL HAYEE,
Karachi.