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Sindh moves to cut power costs, tackle theft

Sindh Moves To Cut Power Costs Tackle Theft
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Sindh Chief Minister Syed Murad Ali Shah has reaffirmed his government’s commitment to addressing industrial energy challenges by ensuring affordable electricity, curbing power theft, and maintaining a steady energy supply. Chairing a meeting of the Business Facilitation Coordination Committee (BFCC) at the Chief Minister’s House, Shah urged the federal government to approve a Rs33 billion subsidy package for industries, similar to the 2020-2023 industrial support initiative. Industrialists at the meeting voiced concerns over persistent power shortages, unreliable gas supply, and widespread electricity theft.

Attendees included provincial ministers, Karachi’s mayor, top energy and industry officials, K-Electric (KE) executives, and business leaders such as MNA Ikhtiar Baig and Zubair Motiwala. During discussions, Shah pressed KE to swiftly release the Rs33 billion subsidy, stressing its importance for industrial competitiveness and economic stability.

“The subsidy will help industries remain viable and contribute to national economic growth,” he stated. To further strengthen energy regulation in the province, Shah announced the imminent activation of the Sindh Electric Power Regulatory Authority (SEPRA), allowing the provincial government to oversee electricity distribution independently. Industrialists welcomed the move, seeing it as a way to reduce dependence on federal agencies and potentially lower electricity costs.

In response to the rising cost of power, Shah revealed that the Sindh government is supporting Chinese firm Ming Yang Renewable in setting up 350 MW and 75 MW hybrid renewable energy projects tailored for industrial consumption. “These projects will provide electricity at Rs18 to Rs25 per unit—far lower than the current Rs60 per unit,” he explained.

The initiative is expected to reduce production costs and generate more jobs. Industrialists raised concerns over frequent power cuts, despite their timely bill payments. They blamed power theft from Pole-Mounted Transformers (PMTs) in industrial areas for exacerbating outages, accusing KE of shifting the burden onto industries instead of tackling the issue. KE CEO Monis Alvi responded by noting that the company had reduced line losses from 40% to 15% and was working on further improvements.

The chief minister instructed KE to implement technical solutions to prevent theft and explore the possibility of separating PMTs for industrial and residential areas. With a natural gas shortage hampering production, industrialists expressed interest in using Thar coal for their boilers—provided a reliable transportation network was set up.

In response, Shah directed Energy Minister Nasir Shah to assess coal demand and assured that the provincial government would arrange transport. Additionally, he pledged to negotiate with the federal government to maintain the sales tax exemption on Thar coal for power generation while introducing taxation on coal sold for non-power uses. Reaffirming his government’s support for the industrial sector, Shah stressed the need for affordable electricity, theft prevention, and a stable power supply. “We are taking all necessary steps to ensure that industries in Sindh thrive,” he stated. The meeting concluded with industrialists expressing appreciation for the provincial government’s efforts to ease the energy crisis and boost industrial productivity.

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