DLP Report
\nPESHAWAR
\nKhyber 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.
\nThese 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.
\nHe expressed grave concern over the situation and urged the federal government to take pragmatic steps for the revival industry sector in KP.
\nDespite KP\u2019s 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.
\nMr. Salim Khan highlighted that the provincial government appears unresponsive to the severe challenges confronting KP\u2019s industrial sector.
\nHe emphasized that the high cost of gas and electricity is rendering operations unviable, even at break-even points.
\n\u201cThe current energy rates are exorbitant,\u201d Khan stated. \u201cOur industries are not \u2018sick\u2019 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,\u201d he said.
\nAdding to the crisis, the federal government has announced plans to disconnect gas supplies to captive power producers starting January 2024, exacerbating the dire situation.
\nKhan noted that this decision, coupled with the Senate Committee\u2019s revelation of over Rs 100 billion lost to power theft in Punjab, underscores a broader issue of mismanagement and neglect.
\nKhan 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. \u201cHow can we expect foreign investors to take interest when domestic businesses are failing, and 50-60pc of industrial concerns have already closed?\u201d Khan questioned.
\nFormer Senator highlighted that foreign investors are unlikely to be enticed by an environment where domestic industries are battling severe constraints.
\nThe closure of factories has led to widespread unemployment and retrenchment, contributing to a rise in street crimes and social instability.
\nKhan called for urgent action from both the federal and provincial governments to address the industrial crisis and improve the investment climate.
\nSalim Saifullah Khan emphasized the need for immediate and effective measures to revitalize the industrial sector, protect jobs, and stabilize the economy.
\nHe urged the political leadership and relevant authorities to prioritize this crisis and take decisive steps to prevent further economic and social deterioration.<\/p>\n","protected":false},"excerpt":{"rendered":"
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 […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":{"0":"post-426570","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-peshawar"},"yoast_head":"\n