Gas redirection

The decision to stop gas supplies for captive power plants is an important step towards energy reform. Although some industries have raised concerns, this move is necessary to ensure affordable and efficient energy for everyone. The shift away from captive power gas usage is not an abrupt measure but part of a carefully planned structural benchmark within the International Monetary Fund (IMF) programme. This step aligns with both the IMF’s and the World Bank’s recommendations, developed after thorough analysis of Pakistan’s energy sector. By directing gas supplies to the most efficient generators and transitioning industries to the national electricity grid, the government can enhance energy efficiency and help reduce the national power tariff. In today’s economic climate, where Pakistan’s economy depends on IMF support for stability, timely execution of these reforms is crucial. Any delay would not only hinder the sector’s improvement but also jeopardise critical international support.

Abdul Hayee

Karachi