INP-WealthPk

Karachi’s industrial sector seeks energy security for sustained growth

February 04, 2025

Ahmed Khan Malik

The industrial sector of the port city of Karachi has called upon the government to ensure energy security, especially during the upcoming summer season, to sustain the country’s economic growth, reports WealthPK.

Industrialists fear that the high cost of energy as well as supply disruptions, especially electricity, may hamper economic growth after the country started stabilizing due to efforts of economic managers. They said frequent power outages are interrupting industrial operations and affecting productivity and daily life. They attributed the outages to a consistent lack of investment in the energy infrastructure and inefficiencies in the production and distribution networks.

The economic losses that follow are significant, as the industries have limited ability to operate at full capacity, leading to higher operational expenses and decreased competitiveness, they said.  “One of the prime concerns of the policy-makers should be to ensure energy security,” Mustafa Naeem, Secretary Karachi Industrial Forum, told WealthPK. 

He pointed out that Pakistan’s unique situation, where the aging of the country has led to an increased reliance on imported energy sources, causing a significant demand-supply gap. This gap is clearly seen in the suppressed demand for electricity and natural gas. “It has social, economic and environmental consequences. Most countries in the world have shifted their focus from imported to indigenous resources, which are often cheaper, more environment-friendly and competitive,” he said. 

Mustafa suggested that policymakers move toward long-run energy security to get environmental and socio-economic sustainability by minimizing reliance on imported energy and promoting energy efficiency. He said in the face of static export earnings, the government’s most pressing priority is to catalyze exports through economic stability and growth. This is where the country’s energy consumption patterns emerge as both a challenge and an opportunity.

The industry, transport, and residential living sectors have experienced notable shifts in their energy demands over the past two decades. Siddique Noorani, member of North Karachi Industrial Area, pointed out that a discernible rise in energy consumption in residential areas – a sector that traditionally does not feed directly into the economic productivity – called for a strategic reallocation of energy resources. He said Pakistan’s journey towards economic revival through productive energy use is both a challenge and an opportunity.

By drawing lessons from other countries, Pakistan can navigate towards a brighter economic future, where energy is not merely consumed but harnessed as a catalyst for growth and development. He called for strategic energy reallocation, coupled with a focus on efficiency and sustainability to energize Pakistan’s economy, driving it towards prosperity and resilience.

Credit: INP-WealthPk