HYDERABAD: Pak­istan’s energy sector is being managed by inexperienced and irresponsible individuals, which is leading the country’s economy toward a disaster, deplored Hyderabad Chamber of Small Traders and Small Industry (HCSTSI) President Mohammad Saleem Memon on Tuesday.

Raising concerns about the government’s inconsistent and contradictory energy policies, he said expensive independent power producers (IPPs) were introduced without a comprehensive strategy. It later became evident these plants were being run on imported oil and coal, making electricity production exorbitantly expensive.

In a statement, he said billions of dollars were spent, yet when electricity demand decreased, the government paid “capacity charges,” skyrocketing circular debt due to poor planning.

He said that the government initially promoted solar energy by introducing on-grid systems, encouraging the public to install solar panels with the assurance that the government would purchase surplus electricity.

However, this policy was now being altered, and instead of purchasing electricity at Rs27 per

unit, the government plans to reduce the rate to Rs10 per unit.

He said that this shift was prompting people to move towards off-grid systems, which would further increase capacity charges and inflict more economic damage. He demanded that the government formulate a comprehensive and long-term energy policy to prevent further financial damage caused by frequent policy changes.

He maintained that the country could no longer afford ill-planned decision-making that brings industries and businesses on the brink of closure.

He added that there must be an immediate review and annulment of exploitative contracts with IPPs to curb growing circular debt and stabilise electricity prices.

Published in Dawn, March 19th, 2025