DLP Report
PESHAWAR
Khyber Pakhtunkhwa (KP), a province rich in energy resources, is grappling with a severe industrial crisis due to exorbitant energy costs, with over 75pc of local textile spinning units currently non-operational.
These views were expressed by the eminent business leader, former Senator, and former Chairman of the All Pakistan Textile Mills Association (APTMA) & Khyber Pakhtunkhwa Textile Mills Association (KPTMA), Salim Saifullah Khan.
He expressed grave concern over the situation and urged the federal government to take pragmatic steps for the revival industry sector in KP.
Despite KP’s self-sufficiency in gas and the capacity to produce cheaper electricity, local industries are facing an existential threat due to unsustainable energy costs, he added.
Mr. Salim Khan highlighted that the provincial government appears unresponsive to the severe challenges confronting KP’s industrial sector.
He emphasized that the high cost of gas and electricity is rendering operations unviable, even at break-even points.
“The current energy rates are exorbitant,” Khan stated. “Our industries are not ‘sick’ but are being suffocated by the high costs of utilities. The provincial government seems to be in a state of denial regarding the severe issues faced by our industries,” he said.
Adding to the crisis, the federal government has announced plans to disconnect gas supplies to captive power producers starting January 2024, exacerbating the dire situation.
Khan noted that this decision, coupled with the Senate Committee’s revelation of over Rs 100 billion lost to power theft in Punjab, underscores a broader issue of mismanagement and neglect.
Khan further criticized the federal and provincial governments for their contradictory stance: while efforts are being made to attract foreign investment through global solicitations, domestic industries are struggling to stay afloat. “How can we expect foreign investors to take interest when domestic businesses are failing, and 50-60pc of industrial concerns have already closed?” Khan questioned.
Former Senator highlighted that foreign investors are unlikely to be enticed by an environment where domestic industries are battling severe constraints.
The closure of factories has led to widespread unemployment and retrenchment, contributing to a rise in street crimes and social instability.
Khan called for urgent action from both the federal and provincial governments to address the industrial crisis and improve the investment climate.
Salim Saifullah Khan emphasized the need for immediate and effective measures to revitalize the industrial sector, protect jobs, and stabilize the economy.
He urged the political leadership and relevant authorities to prioritize this crisis and take decisive steps to prevent further economic and social deterioration.
