PHMA questions power outages despite surplus generation capacity

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Lahore
The Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has expressed serious concern over recurring electricity outages affecting industrial consumers, saying that unreliable power supply continues to disrupt manufacturing, delay export orders and increase production costs despite Pakistan possessing electricity generation capacity well above its actual demand.
PHMA North Zone Chairman Abdul Hameed said the association had received numerous complaints from hosiery and knitwear exporters regarding unscheduled power interruptions that were adversely affecting industrial operations. He said export-oriented industries work under strict production schedules and delivery commitments agreed with international buyers, and even brief disruptions in electricity supply result in production losses, higher operating costs and delayed shipments.
He said it was difficult for the business community to understand why industries continued to face power disruptions when Pakistan’s installed electricity generation capacity reached about 49,651 MW in FY2025-26, while the country’s peak demand generally remains well below that level (around 30,000 MW or less depending on the season).
He said a large portion of the available generation capacity, including that of Independent Power Producers (IPPs), remained underutilized, raising serious questions about energy management and utilization. The government should explain why industrial consumers continue to suffer despite the availability of sufficient installed generation capacity.
Abdul Hameed further said that while industry was expected to increase exports, create employment and drive economic growth, the government had simultaneously imposed policy restrictions and disincentives on industrial solarization, making it increasingly difficult for factories to install solar power systems to reduce dependence on the national grid. Such policies were counterproductive at a time when industries needed affordable and reliable energy to remain competitive. He said industries should be encouraged—not discouraged—to invest in renewable energy. Facilitating industrial solar installations would reduce pressure on the national grid, improve energy efficiency, lower production costs and strengthen Pakistan’s export competitiveness.
He urged the Ministry of Energy, the Power Division, LESCO and all relevant authorities to ensure uninterrupted electricity supply to industrial consumers by fully utilizing available generation capacity and removing unnecessary barriers to industrial investment in solar energy.
Abdul Hameed said Pakistan’s hosiery and knitwear sector remained among the country’s leading value-added export industries, earning billions of dollars in foreign exchange and providing employment to hundreds of thousands of workers. A stable and dependable electricity supply was essential for sustaining production and expanding exports.
Former PHMA Chairman Shahzad Azam Khan said uninterrupted electricity had become one of the most important prerequisites for industrial growth.
While competing countries were ensuring reliable and affordable energy for their export sectors, Pakistani manufacturers continued to face avoidable power disruptions and policy uncertainty.
Former PHMA Chairman Shafiq Butt said exporters were already burdened by high electricity tariffs, expensive financing, rising transportation costs and intense international competition. Continued power interruptions and restrictions on industrial solar adoption further undermined investor confidence and weakened Pakistan’s export potential.
He urged the government to formulate a coherent energy policy that ensures uninterrupted electricity supply, fully utilizes available generation assets and allows industries to freely invest in solar energy, enabling the export sector to compete effectively in international markets.