High tariffs making industry ‘nonviable’, says Sindh CM Murad

KARACHI: Sindh Chief Minis­ter Syed Murad Ali Shah admitted on Friday that industries were rapidly losing viability and there were reports about closures, as electricity tariffs had gone way too high.
“We are pursuing this matter as well and, in this regard, provincial government is going to have an electricity generation and distribution company in the province very soon,” he disclosed during the inauguration of ’My Karachi — Oasis of Harmony Exhibition 2024 at the Expo Centre.
He said that electricity being produced by the Nooriabad Power Plant cost Rs15 per unit, but it was being provided to industrial units at Rs48 per unit, which was affecting industrial establishments, leading them to consider closing down.
Even though the province is contributing to over 70 per cent of the country’s gas production, industries in Sindh are facing gas shortages and are forced to pay RLNG charges, he said. “I have been taking up this particular issue and would continue to pursue it until it was resolved,” he added.
He said that the tariffs from Sindh’s power plants were lower than others, recalling that Thar had vast coal reserves that could meet the country’s energy requirements for hundreds of years.

“Coal is utilised to produce urea, gas and diesel,” he stated and emphasised that the federal government should focus on the coal of Thar. “Currently, the cheapest energy in the country is produced from Thar Coal,” he added.
The CM suggested that the issue of capacity charges could be renegotiated with the IPPs to resolve it through a long-term plan. “If the ad hoc policy of capacity charges continues unabated, the issue will not only remain unresolved but will worsen further,” he expressed.
Mr Shah urged the need for restructuring the power tariff to provide relief to the people and industrialists and suggested that if there was a shortage of funds for the development of transmission lines, industrial units consuming more energy should be shifted closer to power plants.
Additionally, he urged traders to work together to ensure the growth of Karachi’s industrial sector and called for collaboration to drive economic growth and prosperity in the province and the country.
Published in Dawn, August 3rd, 2024