HYDERABAD:* Pakistan’s energy sector is being mismanaged by inexperienced and irresponsible officials, pushing the country’s economy toward crisis, warned Hyderabad Chamber of Small Traders and Small Industry (HCSTSI) President Mohammad Saleem Memon on Tuesday.
He criticized the government’s inconsistent and contradictory energy policies, highlighting the introduction of costly independent power producers (IPPs) without a comprehensive strategy. It later emerged that these plants relied on imported oil and coal, making electricity generation excessively expensive.
Despite billions of dollars in investments, poor planning has led to soaring circular debt, with the government paying hefty “capacity charges” even when electricity demand declines.
Memon further condemned the shifting stance on solar energy. Initially, the government encouraged on-grid solar installations by assuring consumers it would purchase surplus electricity. However, the proposed reduction in purchase rates from Rs27 to Rs10 per unit is now driving consumers toward off-grid systems. This shift, he warned, would further escalate capacity charges and deepen economic instability.
He urged the government to establish a comprehensive, long-term energy policy to prevent further economic damage caused by frequent policy reversals. Additionally, he called for an urgent review and annulment of exploitative IPP contracts to curb circular debt and stabilize electricity prices.
Pakistan, he stressed, cannot afford ill-planned energy decisions that jeopardize industries and businesses.
Story by Mohammad Hussain Khan
