The government’s decision to curtail gas to captive power plants (CPPs) is a significant step toward addressing Pakistan’s power challenges. This shift is essential for reducing power tariffs and stabilising energy supply especially ensuring the much-needed supply to the power utility instead, which can eventually result in affordable electricity for the masses. The power sector’s fixed capacity costs currently rise as demand falls. By moving industrial consumers onto the grid, we can stabilise demand, reduce these fixed charges and bring down electricity costs. For industries, this transition aligns with the recent winter support package announced by Prime Minister Shehbaz Sharif, which reduces rates for incremental power usage from December to February. This package, alongside grid integration, will help industrial consumers cut costs, enhancing their competitiveness.
Although this reform is challenging, delaying it could compromise Pakistan’s economic stability, especially given the IMF programme requirements. With careful implementation, this transition will lead to a more robust power sector that provides reliable, affordable electricity to businesses and citizens alike at a time when economic recovery is vital.
Zia Khan
Karachi
