FPCCI Warns of Deepening Energy Crisis, Urges Immediate Industrial Relief

ENERGY

The Federation of Pakistan Chambers of Commerce and Industry on Wednesday raised alarm over the worsening energy crisis in the country, revealing that the electricity shortfall has exceeded 6,500 megawatts and is severely impacting industry and exports.

Addressing a press conference, FPCCI President Atif Ikram Sheikh paid tribute to the Prime Minister, Field Marshal, Deputy Prime Minister, and Interior Minister for their diplomatic efforts in preventing a potential global conflict. He also called for awarding the Nobel Peace Prize to Syed Asim Munir for his role in maintaining regional stability.

Highlighting the gravity of the energy crisis, S M Tanveer stated that electricity demand has reached 22,000 megawatts, while supply remains limited to 15,400 megawatts, resulting in a shortfall of over 6,500 megawatts. He noted that a decline of 1,991 megawatts in low-cost hydel power generation has further aggravated the situation.

He termed the ongoing load shedding—up to 8 hours in urban areas and 16 hours in rural areas—as unacceptable. Industrial areas are facing up to 4 hours of outages, while residential and commercial sectors are also heavily affected.

Tanveer warned that the crisis poses a serious threat to exports, particularly the textile sector, with more than 100 textile mills already shut down due to unreliable electricity supply. He cautioned that failure to provide affordable and uninterrupted power to industries could trigger widespread unemployment.

Calling for urgent government intervention, he demanded the introduction of an immediate industrial support package and the elimination of cross-subsidies in electricity tariffs to reduce the burden on productive sectors.

FPCCI Vice President Asif Sakhi pointed out that electricity tariffs in Pakistan are significantly higher compared to regional countries, undermining industrial competitiveness. Vice President Aman Paracha added that expensive electricity and gas are making Pakistani products uncompetitive in global markets.

Another Vice President, Nasir Khan, criticized the petroleum levy, calling it an additional burden on both consumers and the business community.

Former FPCCI President Zubair Tufail urged the power regulator National Electric Power Regulatory Authority to stop what he termed as “consumer exploitation” through frequent tariff adjustments.

The FPCCI leadership called on the government to take immediate corrective measures to address the energy shortfall, stabilize industrial operations, and safeguard the country’s export sector from further decline. – KARACHI: ER Report

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