Karachi, Atif Ikram Sheikh, the presidential candidate for FPCCI, called for a reduction in electricity and gas tariffs on Tuesday, emphasizing that high energy costs are hindering production, exports, and placing additional burdens on the lower-income segments of the population. Sheikh, during his address, highlighted the economic challenges posed by the existing energy sector dynamics and presented potential solutions for sustainable growth.
According to a news release by Atif Ikram Sheikh, Sheikh, who has held significant roles as VP FPCCI, Chairman PVMA, and President ICCI, pointed out that a dysfunctional energy sector has largely affected the economy's vitality. He voiced concerns over the wastage of electricity, which he believes is escalating the circular debt, especially as the IMF has urged Pakistan to hike electricity prices.
Sheikh stated that the power sector's unresolved issues have become a significant economic detriment. Referencing data from the World Bank, he mentioned that the cessation of load shedding can benefit the Pakistani populace by $4.5 billion and businesses by approximately $8.5 billion.
To ensure economic recovery, Sheikh stressed the need for affordable and reliable energy. He outlined key measures including 100% energy recovery, the eradication of load shedding, and an overhaul of transmission and distribution systems to meet international standards.
The FPCCI presidential candidate also pinpointed the country's dependence on imported oil and gas for electricity generation as a primary hurdle for economic advancement. He emphasized that the contributions of nuclear and renewable energy sources are currently underwhelming. Advocating for a shift, Sheikh shared that wind and solar power plants are not only cost-effective compared to fuel-driven alternatives but also crucial for addressing issues like transmission losses and electricity theft.
Despite the potential of wind energy in Pakistan being a substantial 50,000 megawatts, only 1,335 megawatts are currently generated from this source. Similarly, solar energy's contribution stands at a mere 600 megawatts, a fraction of its potential at 1.4%. Sheikh urged for a significant increase in renewable energy production to safeguard the nation's foreign exchange reserves.