Necessary phase out

Transitioning gas away from captive power users and connecting industries to the national electricity grid is a well-planned, overdue reform that promises to benefit Pakistan’s energy sector and, by extension, every citizen through improved efficiency and reduced power costs. For years, Pakistan has faced rising energy costs and an unsustainable dependency on fixed-capacity charges that burden our national electricity tariff. Enabling industries to transition to grid power not only optimises our gas usage but is also expected to decrease electricity costs for the general consumer.

Estimates suggest a potential reduction in tariffs of over Rs2 per unit, a change that will directly benefit households and businesses struggling with today’s high electricity prices. The argument from some industries that this shift could impact their competitiveness overlooks the economic reality that captive power gas usage has already been under scrutiny in previous IMF and World Bank programmes. This change is anything but sudden; it is a strategic shift that has been discussed for years and is backed by sound data on the energy sector’s inefficiencies.

Tariq Khalique

Karachi