A live session was organized by the Federation of Pakistan Chamber of Commerce and Industry (FPCCI) on the topic of “Powering Pakistan’s Future: Strategies to Address the Energy Crisis” where experts addressed the need for energy conservation and industrialization to help with the current energy crisis.
Finance Minister, Muhammad Aurangzeb was the chief guest at the event where Professor Dr. Fiaz Ahmad Chaudhary of LUMS highlighted that Pakistan spends $70 billion on debt servicing for additional capacity charges. He further stressed the importance of estimating energy demands accurately; saying that the country’s energy demand varies greatly between winter and summer, with a significant gap of 16,000 to 18,000 MW in demand and supply during winter.
He suggested the implementation of energy-efficient measures, stopping leakage, and shutting down inefficient plants as well as increasing industrialization to resolve capacity charges issues.
Chairman All Pakistan Textile Mills Association North Zone Kamran Arshad was also a part of the event. During his speech, he emphasized the need for industrialization to reduce energy costs. He stressed that competitive energy rates are essential for increasing exports which will also prove beneficial for the local market.
Former Chairman NEPRA Tauseef H. Farooqi highlighted the errors in the energy sector, which include dollar-based contracts, unrealistic demand projections, and reliance on imported fuel. He emphasized the effect of tax added to the price of electricity.
Chairman Oil Marketing Association Tariq Wazir Ali called for a thorough evaluation of the Turn over Tax policy, seeking a reduction to 0.25% to ensure profitability and viability and he also suggested that there should be a thorough evaluation of the Turn over Tax policy. They have also urged the government to address these concerns promptly to promote a better business environment for the entire oil industry in Pakistan.
