KARACHI: Sindh Chief Minister Syed Murad Ali Shah on Friday chaired a meeting of the Business Facilitation Coordination Committee (BFCC) to address the challenges being faced by the industries related to electricity and gas.
He emphasised the importance of the timely release of a Rs33 billion electricity subsidy package similar to the 2020-2023 industrial support package and the provision of locally sourced gas to support the industrial sector, as mandated by Article 158 of the Constitution of Pakistan in the national interest.
The meeting held at the CM House was attended by industrialists who had earlier raised significant concerns regarding electricity shortage, gas supply issues and power theft.
Those who participated in the meeting included provincial ministers Syed Nasir Shah, Saeed Ghani and Jam Ikram, Karachi Mayor Murtaza Wahab, Energy Secretary Musaddiq Khan, Karachi Commissioner Hassan Naqvi, Secretary to the CM Raheem Shaikh, various provincial secretaries, managing director of the Karachi Water and Sewerage Corporation, K-Electric (KE) CEO Moonis Alvi, KE Chief Distribution Officer Sadia Dada and Deputy Managing Director of Sui Southern Gas Company Syed Saeed Rizvi.
Business community leaders, such as MNA Ikhtiar Baig, Zubair Motiwala, Zubair Chayya and Shabir Diwan also attended the meeting.
The CM urged the KE to immediately implement the Rs33 billion subsidy for the industries, stating that industrial growth was crucial for strengthening Pakistan’s economy. “The subsidy will help industries remain competitive and stimulate economic activity, ultimately benefiting the national economy,” he asserted.
Shah announced that the Sindh Electric Power Regulatory Authority (Sepra) would be soon fully operational, allowing the provincial government to independently regulate the electricity supply in the province.
“This step will enable us to address industrialists’ concerns regarding electricity supply and pricing without unnecessary obstacles,” he added.
The industrialists welcomed this development, noting that a provincial regulatory authority could reduce reliance on federal agencies and potentially offer more favourable electricity rates.
In response to the high cost of electricity, the CM revealed that the Sindh government was collaborating with Chinese company Ming Yang Renewable in developing 350MW and 75MW hybrid renewable energy projects specifically for industries.
“These projects will provide electricity at rates ranging from Rs18 to Rs25 per unit, significantly lower than the current Rs60 per unit that industries must pay,” he explained.
The initiative aims to reduce the financial burden on industries, enabling them to increase production and create more employment opportunities.
Some industrialists expressed frustration over frequent electricity and gas load-shedding in industrial areas despite consistently paying their bills. They accused what they termed the power theft mafias of stealing electricity from pole-mounted transformers (PMTs) located in industrial zones, which increased line losses and exacerbated power outages.
The industrialists claimed that the KE deliberately enforced loadshedding in industrial areas to compensate for its supply losses. They insisted that the KE take stringent measures against power theft rather than penalising industries with loadshedding.In response, the KE mentioned that the company had successfully reduced its line losses from 40 per cent to 15 per cent and was working to improve the situation further. The CM instructed the KE to implement technical solutions to prevent industrial power theft and consider separating PMTs for industrial and residential areas.
Concerned over the natural gas shortage, the industrialists expressed their willingness to use Thar coal for their boilers if a reliable transportation system was established.
At this, the CM directed Energy Minister Nasir Shah to assess the coal demand of industries, assuring that the provincial government would arrange transportation once the demand was confirmed. “We will take necessary steps to facilitate industrialists in accessing Thar coal as an alternative energy source,” he stated. He also promised to approach the federal government to retain the exemption of sales tax on the Thar coal for power generation when the sale of Thar coal for non-power generation began.This approach would benefit all the stakeholders as selling coal for power generation would remain cost-effective and increase revenue through sales tax on non-power generation sales, he added.
The CM reiterated his government’s commitment to supporting industries, emphasising that Sindh’s economic growth was closely tied to the success of its industrial sector. “We are taking all necessary steps to provide affordable electricity, reduce power theft, and ensure an uninterrupted energy supply for industries,” he affirmed.