PTEA head highlights pressing need of comprehensive energy strategy

FAISALABAD: The Patron-in-Chief of Pakistan Textile Exporters Association (PTEA), Khurram Mukhtar, has highlighted the pressing need for a 15-year comprehensive energy strategy to stabilize Pakistan’s energy sector amid volatile global conditions, says a press release on Sunday.

Mukhtar emphasized that inefficiencies, particularly within six high-loss Distribution Companies (Discos), and outdated infrastructure in the National Transmission and Dispatch Company (NTDC), are major contributors to the sector’s challenges. “A major overhaul in these entities is critical to addressing transmission issues, reducing losses and implementing the merit order effectively,” he stated.

Mukhtar advocated for transitioning Pakistan’s energy sector to a competitive marketplace, moving away from the restrictive frameworks that currently hinder competition. He noted that the government’s winter package, aimed at increasing industrial electricity consumption, could benefit 35-40% of industrial users.

However, most businesses still lack the necessary incremental consumption, limiting the package’s full potential. “It’s a promising start, but for real economic benefits, policy stability and continuity are crucial for the industrial sector to engage in effective long-term planning,” Mukhtar added.

He further criticized the frequent, short-term policy shifts, often made without the Planning Commission’s input. “Over the last 6-7 years, many key policies have been reactive, implemented without a clear understanding of their broader impact,” Mukhtar remarked, calling for consistent course corrections to avoid sudden, detrimental changes.

Mukhtar stressed that proactive, collaborative planning among all stakeholders is essential to mitigate potential energy shortages as current surpluses are projected to turn into deficits. He called for a thorough analysis of Pakistan’s energy demand and supply, with an urgent focus on energy conservation and green energy, especially solarization. “Achieving a balance between supply and demand while keeping tariffs affordable for all is key to sustainable energy,” he said. Pointing to recent policy missteps, he noted the abrupt halt of gas supply to highly efficient Combined Heat and Power (CHP) units operated by the private sector.

“This decision risks billions in private sector investments and damages the export supply chain’s sustainability, sending a discouraging signal internationally. There’s still time to revisit this decision for a more thoughtful, sustainable approach,” Mukhtar cautioned.