Lahore
\nFederation of Pakistan Chambers of Commerce and Industry\u2019s Businessmen Panel (BMP) Chairman Mian Anjum Nisar has come down hard on the government\u2019s proposed \u201cincremental power consumption\u201d package, saying the plan is inadequate, poorly designed, and unlikely to revive Pakistan\u2019s struggling industrial sector. He said that the policy reflects a lack of understanding of ground realities and fails to address the structural issues that have made the country\u2019s power tariffs among the highest in the region.
\nFPCCI former president\u2019s remarks came after the Power Division presented its proposal before the National Electric Power Regulatory Authority (Nepra), seeking an urgent approval of a special discounted electricity rate of Rs22.98 per unit for incremental industrial consumption. The government claims that this package, which also covers private agricultural consumers, will encourage higher energy use, stimulate industrial growth, and stabilise the national grid without any fiscal burden on the exchequer.
\nHowever, he rejected these arguments outright. He said that when industries are already paying Rs34 to Rs38 per unit \u2014 among the highest in Asia \u2014 offering a discounted rate only on additional usage would have no meaningful effect. \u201cThis is not relief; it\u2019s an illusion,\u201d he remarked. \u201cIf the government truly wants to revive manufacturing and exports, it must bring down the base tariff for industrial consumers to single-digit cents, not design complex schemes that offer symbolic discounts.\u201d
\nAnjum Nisar pointed out that Pakistan\u2019s industrial sector has been under severe stress for years, with rising energy prices, excessive taxation, and unpredictable policies pushing many units to shut down or relocate abroad. \u201cOur regional competitors \u2014 Bangladesh, Vietnam, and India \u2014 offer electricity between 4 and 9 cents per unit. How can Pakistani exporters survive in global markets when we are forced to pay nearly four times that cost?\u201d he questioned.
\nHe emphasised that high power tariffs are not just an industrial issue but a national economic concern. \u201cExpensive energy directly translates into inflation, unemployment, and reduced export competitiveness,\u201d he said. \u201cWithout affordable and reliable power, no incentive, subsidy, or special package can save the manufacturing sector.\u201d
\nThe FPCCI\u2019s BMP Chief further criticised the Power Division\u2019s attempt to fast-track the package\u2019s approval without proper consultation.
\nHe also expressed concern over the government\u2019s tendency to announce schemes without coordination between federal and provincial authorities. \u201cEven now, there are conflicting solar and renewable energy policies in Punjab and at the federal level. This lack of alignment discourages investment and confuses industrial consumers,\u201d he said.
\nHighlighting the decline in industrial and agricultural electricity consumption, Nisar said the data reflects a deeper crisis. According to the Power Division\u2019s own figures, industrial demand has contracted by 14 per cent while agricultural demand has dropped by 47 per cent due to macroeconomic pressures and the growing shift towards solar and captive generation. \u201cThese are alarming numbers,\u201d he said. \u201cThey show that industries are moving off-grid not by choice but by necessity. They simply cannot afford grid electricity anymore.\u201d
\nHe added that such behaviour undermines the sustainability of the national grid. \u201cWhen paying consumers leave the grid, the entire cost burden shifts to the remaining users, further increasing tariffs. This vicious cycle will continue unless reforms make the system competitive again,\u201d he explained.
\nAnjum Nisar urged the government to eliminate cross-subsidies that unfairly penalise industries. \u201cIndustrial consumers are forced to pay for inefficiencies and subsidies for other sectors. This is not sustainable. Cross-subsidisation has distorted the entire tariff regime,\u201d he said.
\nThe FPCCI ex-president also criticised the lack of accountability in the power sector. \u201cWe keep hearing about circular debt, transmission losses, and capacity payments, yet no one is held responsible. The focus should be on reducing system inefficiencies rather than imposing new burdens on productive sectors,\u201d he added.
\nHe supported Nepra\u2019s observation that rushing through regulatory approvals undermines due process. \u201cWe must restore the credibility of our regulatory framework. Decisions affecting billions of rupees and thousands of jobs cannot be taken overnight just to show quick progress,\u201d he said.
\nAnjum Nisar proposed the creation of a joint task force comprising representatives from the Power Division, Nepra, FPCCI, and key industrial associations to develop a long-term industrial energy strategy. This body, he said, should focus on simplifying tariff structures, ensuring fair competition, and gradually transitioning toward renewable sources without compromising affordability.
\n\u201cThe government\u2019s job is not to sell expensive power but to create an environment where industries can operate efficiently and profitably,\u201d he said. \u201cIf we continue with high tariffs, erratic policies, and cosmetic incentives, we will face massive de-industrialisation.\u201d
\nHe also pointed out that previous schemes \u2014 including the Industrial Support Package (2020\u201323) and the Bijli Sahulat Package (December 2024\u2013February 2025) \u2014 had only provided temporary relief and failed to create lasting stability. \u201cShort-lived schemes cannot solve long-term structural issues. What we need is predictability and competitive pricing,\u201d he added.
\nAnjum Nisar urged policymakers to listen to the business community rather than bureaucratic voices disconnected from market realities. \u201cWe want to cooperate with the government in finding solutions, but solutions must be based on economics, not optics. The survival of Pakistan\u2019s manufacturing base depends on immediate, bold, and rational energy reforms,\u201d he concluded.<\/p>\n","protected":false},"excerpt":{"rendered":"
Lahore Federation of Pakistan Chambers of Commerce and Industry\u2019s Businessmen Panel (BMP) Chairman Mian Anjum Nisar has come down hard on the government\u2019s proposed \u201cincremental power consumption\u201d package, saying the plan is inadequate, poorly designed, and unlikely to revive Pakistan\u2019s struggling industrial sector. He said that the policy reflects a lack of understanding of ground …<\/p>\n","protected":false},"author":4,"featured_media":67984,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-89718","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/89718","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/comments?post=89718"}],"version-history":[{"count":1,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/89718\/revisions"}],"predecessor-version":[{"id":89730,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/89718\/revisions\/89730"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/media\/67984"}],"wp:attachment":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/media?parent=89718"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/categories?post=89718"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/tags?post=89718"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}