Sindh Chief Minister Syed Murad Ali Shah has expressed concern over the high cost of electricity from the Nooriabad power plant, which is generated at Rs15 per unit but billed at Rs48 per unit. This discrepancy is putting a strain on local industries, despite Sindh being responsible for over 70% of the country’s gas production. Speaking at the inauguration of the “My Karachi – Oasis of Harmony Exhibition 2024” at the Expo Center on Friday, the CM highlighted the ongoing issues. He noted that industries in Sindh are not only facing severe gas shortages but are also forced to pay for expensive RLNG.
The event was attended by provincial ministers SharjeelMemon, Jam Khan Shoro, Jam IkramDharejo, and Zulfiqar Ali Shah. Murad Ali Shah acknowledged the adverse impact of the steep electricity tariffs, which are causing industries to lose viability, leading to reports of closures. In response, he announced plans for Sindh to establish its own electricity generation and distribution company, stating, “We are actively working on this initiative and expect to launch it soon.
” Murad Shah mentioned that the electricity being produced by the Nooriabad power plant costs Rs15 per unit, but it is being provided to the industrial units at Rs48 per unit, which has badly affected the industrial establishments, leading them to consider closing down. “I am aware that even though Sindh explores over 70 per cent of the country’s gas, industries of our province face gas shortages and are compelled to pay RLNG charges which is not a wise thing to do,” the CM said. He added that he had been taking up this particular issue and would continue to pursue it until it was resolved.
Murad Shah stated that Sindh is a powerhouse of energy, and we are supplying inexpensive electricity to the national grid from the Nooriabad power plant, Gharo, and Thar projects. “The tariff at Sindh Nooriabad is Rs15 per kWh, and the Nooriabad transmission line, laid by the Sindh government, has a tariff of Rs. 0.79 per kWh. The Gharo Solar tariff is Rs17.43 per kWh, and the Thar tariff is also lower than other power plants.”
The CM mentioned that Thar has vast coal reserves that could meet the country’s energy requirements for hundreds of years. “The coal is utilized to produce urea, gas, and diesel,” he stated and emphasized that the federal government should focus on the coal of Thar. “Currently, the cheapest energy in the country is produced from Thar Coal,” he added. Murad Shah also recalled that during her tenure as prime minister, ShaheedMohtarma Benazir Bhutto brought the cheapest electricity to the country. The IPP Power policy of ShaheedMohtarma Benazir Bhutto was adopted by Bangladesh but unfortunately, it faced devastation here. The CM suggested that the issue of Capacity Charges could be renegotiated with the IPPs to resolve it through a long-term plan. “If the ad hoc policy of capacity charges continues unabated, the issue will not only remain unresolved but will worsen further,” he expressed. Murad Shah stated the need for restructuring the power tariff to provide relief to the people and industrialists and suggested that if there is a shortage of funds for the development of transmission lines, industrial units consuming more energy should be shifted closer to power plants.
He also emphasized that Karachi is the heart, economic hub, and largest revenue generator of the country. He mentioned that although Karachi was declared the 6th most dangerous city in the world, the law & order situation has significantly improved due to serious efforts and political will of the Sindh government. Murad Shah expressed the commitment to further improve the peaceful situation in Karachi, addressing challenges faced by its trade and industrial sectors, and elevating the city’s contribution in terms of exports from 54 per cent to 80 per cent and beyond. He stressed that Karachi is the lifeline of the nation and assured that every issue affecting trade and industry in Karachi is of utmost importance to his government.
