The ongoing debate over the government’s decision to cut gas supplies to captive power plants has raised some legitimate concerns, but it’s essential to view the larger picture. Transitioning gas away from captive power users and connecting industries to the national electricity grid is a well-planned, overdue reform that promises to benefit Pakistan’s energy sector—and by extension, every citizen—through improved efficiency and reduced power costs.
For years, Pakistan has faced rising energy costs and an unsustainable dependency on fixed-capacity charges that burden our national electricity tariff. Enabling industries to transition to grid power not only optimizes our gas usage but is also expected to decrease electricity costs for the general consumer. Estimates suggest a potential reduction in tariffs over Rs. 2 per unit, a change that will directly benefit households and businesses struggling with today’s high electricity prices.
The argument from some industries that this shift could impact their competitiveness overlooks the economic reality that captive power gas usage has already been under scrutiny in previous IMF and World Bank programs. This change is anything but sudden; it’s a strategic shift that’s been discussed for years, backed by sound data on the energy sector’s inefficiencies and intended to enhance stability and sustainability.
Concerns about the reliability of grid power are understandable, but the solution lies in strengthening our grid, not in maintaining inefficient captive gas usage. This transition will incentivize much-needed investment in grid infrastructure, helping ensure reliable, efficient electricity for all.
Pakistan’s economic stability relies on the timely implementation of these reforms as part of the current IMF program. The longer we delay, the harder it becomes to secure affordable and reliable energy for the nation. Moving forward with this phase-out of captive gas usage is not only a fulfillment of international commitments but also an opportunity to finally address the systemic issues within our energy sector.
MUHAMMAD KASHIF
LAHORE
