Sindh CM Syed Murad Ali Shah has expressed concerns over the impact of high fuel and power prices on the industry. He pointed out that several sectors in Karachi have shut down due to this, while others are on the brink of closing because of these financial constraints.
Solving the Challenges
Murad Ali Shah acknowledged various problems facing the industry. He felt it necessary to discuss these issues and discuss possible solutions openly. One way out was to hold talks with Independent Power Producers (IPPs). He asked for the government to redress issues being faced by traders/industrialists immediately.
Plans for New Power Company
The Chief Minister announced a major decision involving setting up another Sindh company to generate electricity and distribute it only. During his speech at the 19th My Karachi Exhibition’s launching ceremony organized by the Karachi Chamber of Commerce at the Expo Center, he drew attention to the significance of this exhibition each year. He expressed delight in launching its 2024 edition after consistently participating as CM since he assumed power, calling it one of the most important events ever held in the provincial capital city.
Karachi: The Business Hub And Issues
He highlighted that Karachi is Pakistan’s economic hub, earning more income than any other city in the country. It used to be the sixth most dangerous town globally; however, with the National Action Plan collaboration with law enforcement agencies, the Sindh Government has successfully pacified Karachi. All remaining crimes will be eliminated from our city,” he pledged.
Dealing with High Electricity Tariffs
The chief minister identified high electricity tariffs as an obstacle to industries’ growth and development, resulting in inefficiency. As such, he reiterated his plans to set up another electric company based in Sindh that would produce and distribute electricity throughout this province. After obtaining all permits, we will complete the power plant construction in three to five years, leading to less expensive electricity.
Federal Budget Concerns
He criticized the federal budget for creating numerous issues for traders and industrialists. For this reason, the provincial Chief Minister called upon the federal government to solve these problems, ensuring the nation’s progress and development. He added that Sindh and Karachi’s growth, production, and exports are significant to the Pakistani economy.
Energy Resources in Sindh
Murad Ali Shah highlighted Sindh’s role in the country’s energy sector, noting that while the province generates over 70% of the nation’s gas, its industries lag behind. He explained that the government forces industries to pay RLNG tariffs, despite their constitutional right to receive priority for using locally produced gas. Also, he referred to abundant coal resources available within various sectors, including fertilizer production, among others. Additionally, he stated that Thar coal constitutes the lowest-priced fuel source for producing electricity.
Power Policies; Then And Now
The inefficiency and corruption inherent in Pakistan’s power sector deeply frustrated him. He remembered that in 1994, under Benazir Bhutto’s power policy, international companies were attracted by the 6 cents per unit produced by IPPs. Since then, our capacity payments crisis has resulted from mismanagement.
Sindh CM Murad Ali Shah’s statement emphasizes the urgent need for structural reforms in the energy sector. These reforms could mitigate the financial burden on industry and enhance economic growth in Sindh and Pakistan as a whole.
