Sindh Chief Minister Syed Murad Ali Shah chaired a meeting of the Business Facilitation Coordination Committee (BFCC) to address the challenges faced by industries related to electricity and gas and emphasized the importance of the timely release of Rs33 billion subsidy packages similar to the 2020-2023 industrial support package and the provision of locally sourced gas to support the industrial sector, as mandated by Article 158 of the Constitution of Pakistan for the national interest.
The meeting, held at the Chief Minister’s House, included industrialists who raised significant concerns regarding electricity shortages, gas supply issues and power theft. The attendees included provincial ministers Syed Nasir Shah, Saeed Ghani, Jam Ikram, Karachi Mayor Murtaza Wahab, Secretary of Energy Musaddiq Khan, Commissioner of Karachi Hassan Naqvi, Secretary to the CM Raheem Shaikh, various provincial secretaries, the Managing Director of the Water Board, as well as representatives from K-Electric (KE), including CEO Monis Alvi, Chief Distribution Officer Sadia Dada, and Deputy MD of SSGC Syed Saeed Rizvi. Business community leaders, such as MNA Akhtiar Baig, Zuabir Motiwala, Zubair Chayya, and Shabir Diwan, were also present at the meeting, a CM House communique said on Friday.
The chief minister urged KE to immediately release the Rs 33 billion subsidy for industries, stating that industrial growth is crucial for strengthening Pakistan’s economy. “The subsidy will help industries remain competitive and stimulate economic activity, ultimately benefiting the national economy,” he asserted.
Mr Shah announced that the Sindh Electric Power Regulatory Authority (SEPRA) will soon be fully operational, allowing the provincial government to independently regulate the electricity supply in the province. “This step will enable us to address industrialists’ concerns regarding electricity supply and pricing without unnecessary obstacles,” he added.
Industrialists welcomed this development, noting that a provincial regulatory authority could reduce reliance on federal agencies and potentially offer more favourable electricity rates.
In response to the high cost of electricity, Murad Ali Shah revealed that the Sindh government was facilitating Chinese company Ming Yang Renewable in developing 350 MW and 75 MW hybrid renewable energy projects specifically for industries. “These projects will provide electricity at rates ranging from Rs 18 to Rs 25 per unit, significantly lower than the current Rs 60 per unit that industries must pay,” he explained.
This initiative aims to reduce the financial burden on industries, enabling them to increase production and create more employment opportunities.
During the meeting, the industrialists expressed frustration over frequent electricity and gas load-shedding in industrial areas despite consistently paying their bills. They accused power theft mafias of stealing electricity from Pole-Mounted Transformers (PMTs) located in industrial zones, which increases line losses and exacerbates power outages.
They claimed that K-Electric (KE) deliberately enforced load-shedding in industrial areas to compensate for its own supply losses. They insisted that K-Electric must take stringent measures against power theft rather than penalising industries with load shedding.
In response, K-Electric CEO Monis Alvi mentioned that the company has successfully reduced its line losses from 40 per cent to 15 per cent and is working to improve the situation further. The Chief Minister then instructed K-Electric to implement technical solutions to prevent industrial power theft and to consider separating PMTs for industrial and residential areas.
They expressed concerned about the natural gas shortage affecting production and expressed their willingness to use Thar coal for their boilers if a reliable transportation system were established. At this, the chief minister directed Energy Minister Nasir Shah to assess the coal demand from industries, assuring that the provincial government would arrange transportation once this demand was confirmed. “We will take necessary steps to facilitate industrialists in accessing Thar coal as an alternative energy source,” he stated.
He also committed to approaching the Federal Government to retain the exemption of sales tax on Thar coal for power generation when the sale of Thar coal for non-power generation begins. This approach would benefit all stakeholders, as selling coal for power generation would remain cost-effective and increase revenue through sales tax on non-power generation sales, he said.
CM Murad Ali Shah reiterated his government’s commitment to supporting industries, emphasizing that Sindh’s economic growth is closely tied to the success of its industrial sector. “We are taking all necessary steps to provide affordable electricity, reduce power theft, and ensure an uninterrupted energy supply for industries,” he affirmed. The industrialists expressed their appreciation for the Sindh government’s efforts.