The government’s decision to curtail gas supplies to captive power plants marks a critical step in addressing Pakistan’s energy challenges. Redirecting gas to the power utility instead can stabilise supply, reduce tariffs, and ensure affordable electricity for the masses.

Pakistan’s power sector faces rising fixed capacity costs due to declining demand. Transitioning industrial consumers to the grid can stabilise demand, reduce fixed charges, and lower electricity costs. The recently announced winter support package, which offers discounted rates for incremental power usage from December to February, further supports industrial competitiveness by reducing costs.

While implementing this shift is challenging, delaying it risks undermining economic stability, especially given IMF program requirements. With careful planning, this transition can strengthen the power sector, ensuring reliable, affordable electricity during Pakistan’s critical economic recovery.

TANZEEL KHANZADA,

Karachi.