Muhammad Saleem

Chinese energy companies can partner with Faisalabad’s Special Economic Zones (SEZs) to help solve electricity issues.

Waheed Ahmed, an industrialist, told WealthPk that the industrial sector of Pakistan has tremendous potential to grow. However, electricity shortages are holding it back. He said the government has established special economic zones to promote industrialization. But these zones cannot function effectively without a stable power supply. How can any industry grow without access to affordable electricity? he asked.

He said that Chinese energy companies can cash in on this opportunity by investing in these zones. Ahmed noted that power shortages are hampering the progress of the industry and Chinese firms have a major opportunity for investment in the energy sector. “Stable and affordable electricity can be a game-changer for the economy of Pakistan and can help create jobs.

Frequent load shedding, high energy prices, and weak infrastructure are causing serious losses,” he claimed. He said that power supply is the backbone of any economic zone. “It's ironic that textile units in Faisalabad lose several hours of work every week due to power cuts. We are forced to use diesel generators or other alternative sources to energize our machinery which are expensive.”

This raises production costs and reduces our competitiveness in the market. Without a reliable electricity supply, the SEZ dream will remain incomplete, he added. Dr. Muhammad Ashraf, a faculty member of the Government College University, said that China is a true friend of Pakistan. It has supported the country under all circumstances.

The technological advancements introduced by Chinese entrepreneurs can contribute significantly to the growth of the industrial sector, he claimed. He said that from top to bottom, everyone knows that energy is the lifeline of every business. Unfortunately, for years the people have been bearing the brunt of expensive electricity, which has severely affected their household budgets.

Many families are now forced to cut back on essentials like their children’s health, education and even food just to save money to pay electricity bills, he added. Even today, the government is struggling to find effective solutions to provide affordable electricity to consumers. Only the industrial sector can help strengthen the economy and provide job opportunities.

However, industrialists are constantly complaining that expensive electricity is eating into their profits and rendering them uncompetitive in international markets. Our industrialists need cheaper electricity to offer affordable products to international buyers, and only inexpensive energy can help them achieve this challenge, he remarked.

He said Chinese entrepreneurs are in a position to solve this long-standing issue by investing in the energy sector. However, he cautioned that such investment should avoid replicating the model of the Independent Power Producers (IPPs), whose high-cost electricity has placed a heavy burden on all segments of society.

Under the China-Pakistan Economic Corridor (CPEC), he noted, China is already helping Pakistan in improving its power infrastructure. Now is a time to invite Chinese entrepreneurs to invest in small-scale, localized energy projects for SEZs, he suggested. For example, Dr. Ashraf proposed offering guidance to these entrepreneurs on building solar farms, hybrid energy stations, or gas turbines directly connected to SEZs.

Besides, he stressed that the government must empower the industrial sector to set up its own energy generation systems rather than relying solely on the national grid. This will ensure a more stable electricity supply and help reduce transmission losses, as it is faster, cleaner, and more efficient.

Credit: INP-WealthPk