HCCI president urges energy policy overhaul

Advocates for sustainable solutions amidst rising tariffs, economic challenges

KARACHI:

Hyderabad Chamber of Commerce and Industry (HCCI) President Adeel Siddiqui urged the government to focus on solar and wind energy with a consistent and sustainable policy, while also advocating for research on artificial gas through the Thar coal project.

He stressed the need to arrange gas through both conventional and unconventional methods to achieve self-sufficiency in the country’s energy sector. Siddiqui suggested that instead of relying on expensive Liquefied Natural Gas (LNG) imports, research on artificial gas through the Thar coal project should be prioritised.

In a statement on Saturday, Siddiqui highlighted how economic degradation and unemployment were leading to poverty and a subsequent increase in crime rates. He insisted that energy tariffs could be controlled by eliminating line losses through comprehensive policy measures. He urged the government to prioritise solar and wind energy investments over importing LNG, which annually burdens the national economy with $1.25 billion in additional costs.

Read HCCI gives protest call against power, fuel price hikes

Siddiqui cautioned that the industrial sector would not grow without consistent economic policies, regardless of changes in government. He pointed out that the recent 250% increase in energy costs, including a Rs4.26 rise per unit of electricity under fuel adjustment, would adversely affect small traders and the cost of doing business, making lives miserable for many.

“We are paying 16 cents per kWh, while neighbouring and regional countries, as well as the rest of the world, charge only 6 cents per kWh,” he remarked. Siddiqui argued that exports could not increase with such a steep rise in energy costs, reiterating that the manifold increase in gas tariffs would escalate production costs and hinder export competitiveness, preventing Pakistan from competing effectively in the international market.

Published in The Express Tribune, February 18^th, 2024.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.