Pakistan rolls out single-point power supply for SEZs

ISLAMABAD: In a landmark decision, the government approved a long-awaited reform on Tuesday, allowing Special Economic Zones (SEZs) and industrial estates to receive electricity through a single-point supply system.

The move is expected to streamline operations, resolve chronic power supply issues and ignite industrial growth across the country.

The premier chaired the Cabinet Committee on Energy (CCoE) and approved these decisions, what the industrialists and business community consider as a giant leap towards empowering Pakistan’s industrial base. Under the new system, SEZ administrations will oversee everything, from new connections to billing, cutting out the middlemen and clearing a significant hurdle for businesses. The Power Division, in its proposal to CCoE, emphasized frustrations of industrial consumers over delays caused by distribution companies. The new single-point supply model hands SEZ management full control over electricity operations, enabling a quicker response to business demands. The system will also free, zone developers from obtaining additional licences to supply power internally, creating a competitive environment. Prime Minister Shehbaz Sharif highlighted the anticipated benefits: Under the new system, the interference of power distribution company officials in the Special Economic Zones (SEZs) and industrial estates has been eliminated. A dedicated Operations and Management (O&M) mechanism is being developed to ensure smooth implementation. The Power Division and Nepra will begin executing this mechanism within next two to three months.