KARACHI: Escalating electricity costs are driving large-scale industries to seek cheaper energy alternatives.

Artistic Denim Mills Ltd informed shareholders on the Pakistan Stock Exchange on Friday that it had commissioned a 2.32MW solar power facility and is developing an additional 2.57MW capacity, thereby increasing its total solar capacity to 4.89MW.

Pakistan’s energy prices are among the highest globally, prompting many companies to adopt renewable energy or reduce production. Some small domestic firms have shut down operations or relocated to countries such as Dubai, Vietnam, and Malaysia, citing unaffordable energy costs.

Solar power has expanded rapidly in Pakistan. It accounted for nearly 14pc of the country’s total power supply in 2024 and reached about 25pc of monthly utility electricity in 2025. This surge is attributed to low-cost Chinese solar technology and abundant sunlight. Initially popular among residents and farmers, solar power is now being adopted by industries as an alternative to expensive grid electricity.

Earlier announcements indicated that International Steel plans a 6.4MW solar project, Dewan Cement 6MW, and Kohinoor Mills 7.2MW.

An industrialist said the shift to solar is driven not only by high energy costs but also by heavy taxes, including multiple levies and super taxes, compounded by widespread corruption. These factors have made survival difficult for many firms.

The industrialist added that growing solar adoption is reducing grid electricity consumption, worsening the government’s circular debt, currently at Rs2.6tr. The government plans to raise Rs1.2tr from banks to settle dues with independent power producers, a cost that will be passed to consumers.

Meanwhile, the export sector is facing setbacks. Gul Ahmed Textile announced it would halt apparel exports, citing persistent losses, rising costs, policy changes, and regional competition.

Philip Morris delists from PSX

The Pakistan Stock Exchange (PSX) has approved the voluntary delisting of Philip Morris (Pakistan) Ltd. The delisting will take effect from Oct 6, according to a PSX notification.

Published in Dawn, October 4th, 2025