KARACHI: Citing power requirements of Karachi and adjoining areas in Sindh and Balochistan, Chief Minister Syed Qaim Ali Shah has written a letter to the prime minister, requesting him to ensure that supply of 650MW to K-Electric (KE) from the National Transmission and Dispatch Company (NTDC) continues.

As the expiry date of the five-year contract for the supply (Jan 26) approaches amid fears that it will not be renewed or extended by the water and power ministry so that the 650MW could be used in meeting shortfalls in Punjab, Khyber Pakhtunkhwa, Azad Kashmir and Balochistan, the chief minister pointed out the importance of Karachi in the economic growth of the country.

Read: K-Electric may not get 650MW

He said in the letter: “We all are cognizant of the difficult times our nation has been going through as we continue to fight the ever-prevailing energy crisis. While the federal and provincial governments play their part in meeting the growing demands on limited energy supplies, reviving and safeguarding the engine of economic growth is also equally important.

“As you (the prime minister) would appreciate, the city of Karachi is the industrial, commercial and financial hub of the country and continues to draw more than (a) 25-30 per cent of Pakistan’s Gross Domestic Product; (b) contribute more than 65pc of revenue collection, about 30pc of manufacturing, and more than 90pc of financial trade; (c) generate around 95pc of sea-borne trade by providing access through Port Qasim and Karachi Port and (d) provide home to over 20 million residents (10-12pc of Pakistan’s population).

“It is worth noting that during the energy crisis, K-Electric, the resilient power company, has been diligently ensuring power supply to the residents of Karachi and parts of rural Sindh and Balochistan. The company in recent years has significantly invested to improve its performance to the satisfaction of the citizens. As its success story needs to be highlighted to attract further foreign investment through privatisation of power generation and distribution companies, it is equally important to realise that it would be unfair and detrimental if 650MW supply to KE from the NTDC is interrupted or stopped.

“Any withdrawal of power supply, dedicated for Karachi..., will have diverse effects such as (a) massive increase in social and political problems because of prolonged loadshedding for all consumers including industrial; (b) huge losses in industrial output; (c) an increase in consumer tariff and (d) intensification of burden on the government through increased tariff differential claims.”

“After enactment of the 18th Amendment to the Constitution,” the letter said, “provincial governments have been categorically empowered to have meaningful contribution while deciding the distribution of energy resources. The province of Sindh contributes more than 65pc of the gas being produced in the country whereas it consumes less than 35pc. Therefore as per Article 158 of the Constitution, it is the fundamental right of the citizens of Sindh, and particularly Karachi, to have its due share from the national power pool.

“...Although 650MW is hardly 4-5pc of the total national grid capacity, with upcoming projects of coal and nuclear energy in Karachi and its adjoining areas, the city will emerge as a ‘power hub’ for electricity export to other parts of the country.

“Furthermore, the Government of Sindh and KE’s future expansion plans will enable it to attain self-sufficiency by 2020.”

Mr Shah urged Prime Minister Nawaz Sharif to pay personal attention to the crucial matter and direct the Ministry of Water and Power / NTDC to continue to support Karachi and parts of Sindh and Balochistan with a supply of 650MW from the national grid.

Published in Dawn, January 10th, 2015

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