Industrial Leaders Warn of Factory Shutdowns, Mass Unemployment as January Gas Suspension Approaches
KARACHI: Industrial leaders have issued a stark warning to the government over its plan to cut off gas supply to captive power plants (CPPs) by January 1, 2025. The proposed suspension could potentially shutter more than 1,300 factories and threaten over three million jobs, creating a severe economic crisis and damaging export performance, according to industry representatives.
Fawad Anwer, Chairman of the Pakistan Textile Council, voiced deep concerns over the decision, stating, “Industrialists who have invested in CPPs are facing immense challenges. K-Electric (KE) lacks the necessary infrastructure and capacity to serve as a viable alternative, often requiring factories to wait years and invest heavily for connections.” He noted that CPPs operate at 70%-75% efficiency, much higher than government power plants, which typically reach only 30%-40% efficiency. “Cutting off gas without adequate planning could have devastating consequences,” he added.
Anwer highlighted the absence of backup solutions for industries and emphasized the need for five to ten years of planning for such a large-scale shift. He urged the government to engage in discussions with industrial stakeholders, as abrupt policy changes would cripple industries, hurt exports, and displace thousands of workers.
Echoing these concerns, Siraj Sadiq Monnoo of the Landhi Association of Trade & Industry (LATI) criticized the decision as a “poorly planned policy shift,” predicting a sharp decline in industrial output. “Forcing industries to transition to grid power would cost billions and require extensive time,” he said, adding that many CPPs lack direct or adequate grid connections.
Karachi Chamber of Commerce & Industry (KCCI) President Muhammad Jawed Bilwani called the decision an “anti-industry move” that would bring irreversible harm to Pakistan’s economy. “Industries cannot bear the brunt of CPP closures due to a gas suspension,” he stated, urging the government to withdraw the decision and seek alternate solutions in dialogue with the IMF.
Industrial leaders stressed that the move would not only disrupt production but also negate the government’s past encouragement for industries to build CPPs as a solution during Pakistan’s electricity crisis in the early 2000s.
Story by GOHAR ALI KHAN
