Islamabad
\nThe Federation of Pakistan Chambers of Commerce and Industry\u2019s Businessmen Panel (BMP) Chairman Mian Anjum Nisar has said Pakistan can no longer afford to lag behind its neighbours in tapping its natural resources for energy security and export earnings, urging the government to learn from Nepal\u2019s recent success in turning hydropower into a regional export industry.
\nWhile addressing a delegation of trade and Industry here at PIAF office, he noted that Nepal had moved from chronic power shortages a decade ago to a surplus that now allows it to supply electricity to India and Bangladesh under long-term contracts at tariffs far lower than Pakistan\u2019s domestic rates.
\nMian Anjum Nisar pointed out that Nepal\u2019s state-owned Nepal Electricity Authority signed a landmark agreement with Bangladesh earlier this year to export 40 megawatts of surplus power between June and November each year, routed through India\u2019s transmission grid, at an agreed tariff of about 6.4 US cents per unit. This is in addition to more than 360 megawatts of electricity Nepal is already selling into India, with several other projects in the pipeline. \u201cIf a mountainous country with a much smaller economy can achieve this transformation, there is no reason Pakistan, with its vast untapped hydropower potential, cannot do the same,\u201d he remarked.
\nAccording to Anjum Nisar, Pakistan currently generates roughly 59 per cent of its electricity from imported thermal fuels such as gas, RLNG, coal and oil, while hydropower contributes around 25 per cent and renewables just 5 to 7 per cent. This reliance on imported energy exposes the country to global fuel price volatility and pushes up tariffs for industry and households. Industrial users now pay on average about 13.5 US cents per kilowatt-hour, compared with Nepal\u2019s export price of 6.4 cents and India\u2019s average industrial tariff of about 8.5\u20139 cents. Even Bangladesh, despite being a power importer, is paying less per unit for some of its supply than Pakistan\u2019s own manufacturers, he said. \u201cWe are effectively pricing our industries out of regional markets,\u201d he warned.
\nHe noted that while Pakistan\u2019s hydropower plants, once built, can generate electricity at a low levelised cost \u2014 the tariff for major existing hydropower projects averages around 4 to 5 US cents per unit \u2014 the share of such projects remains too small because of slow dam construction, regulatory bottlenecks and delayed investment decisions. \u201cThe tragedy is that our cheapest energy source is also our most under-utilised. By accelerating projects like Diamer-Bhasha, Mohmand and Dasu, and by streamlining approvals for private sector hydropower, we could double the share of clean, low-cost electricity in less than a decade,\u201d Nisar said.
\nHe argued that Nepal\u2019s model shows the benefits of focusing on indigenous resources, transparent pricing and regional interconnection. Not only has Nepal achieved energy security at home, but it has also begun to earn steady foreign exchange through power exports. Pakistan, he said, should design a policy framework that encourages similar cross-border electricity trade once its own surplus is achieved. \u201cThis would stabilise our power sector finances, reduce dependence on imported fuels and create a new export industry for Pakistan,\u201d he said. Anjum Nisar urged the government to adopt a multi-pronged approach: prioritising hydropower and renewable projects in public sector planning; offering tax breaks and concessional finance for private investors in green energy; tightening controls on theft and distribution losses; and revising the tariff structure to reward efficiency. He also called for a more proactive role by regulators in clearing pending hydropower projects and setting transparent wheeling and transmission rules so that private producers can supply power directly to industrial clusters at competitive rates.
\nHe emphasised that energy policy should be treated as an integral part of industrial and trade policy. \u201cHigh tariffs are one of the biggest reasons for our export stagnation. If we can lower the cost of electricity through indigenous generation, our textile, engineering and IT industries will regain competitiveness and create jobs,\u201d he said.
\nHe added that cheaper, cleaner power would also help Pakistan meet international environmental standards, which are becoming prerequisites for market access in Europe, North America and the Gulf.
\nNisar said the government should also look at regional examples of integration beyond South Asia. The European Union, Gulf Cooperation Council and ASEAN have all made cross-border electricity trade a pillar of their economic strategies, allowing countries to balance seasonal surpluses and deficits and attract investment into generation and transmission infrastructure. \u201cPakistan should not think only in terms of self-sufficiency but also in terms of becoming an energy hub for the region. This requires vision and urgency,\u201d he said.
\nHe concluded by saying that the present moment offers a rare opportunity to reset Pakistan\u2019s energy trajectory. Global investors are increasingly interested in financing green and renewable projects, while technologies for hydropower, solar and wind are becoming cheaper. \u201cIf we take decisive action now, we can build an energy system that is affordable, sustainable and export-oriented within the next decade,\u201d he said. \u201cNepal has shown it can be done. The only question is whether we have the political will to do it faster and at scale.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Islamabad The Federation of Pakistan Chambers of Commerce and Industry\u2019s Businessmen Panel (BMP) Chairman Mian Anjum Nisar has said Pakistan can no longer afford to lag behind its neighbours in tapping its natural resources for energy security and export earnings, urging the government to learn from Nepal\u2019s recent success in turning hydropower into a regional […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-505641","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n