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Captive power plants
I am writing in support of the government’s decision to phase out gas supply to captive power plants and transition industrial power usage to the national grid. This move is not only a requirement under the IMF’s Extended Fund Facility but also a long-overdue structural reform essential for our energy sector’s sustainability and efficiency.
Captive power plants, though beneficial for certain industries, have perpetuated an imbalance in our gas allocation and energy management. By diverting precious gas resources from centralized, high-efficiency plants to these private setups, we compromise our national energy mix and contribute to an artificially high average power tariff. Integrating captive power users into the grid could significantly reduce tariffs for industrial consumers by improving utilization rates and lowering fixed costs, thus benefiting the industry in the long run.
With gradual steps, government investment in grid infrastructure, and an efficient regulatory framework, a reliable grid can meet industrial energy demand effectively. Other nations have successfully achieved this transition, and so can we. In the broader context, this decision aligns with the 2021 Cabinet Committee on Energy’s roadmap, allowing for adequate preparation. We have seen ample groundwork laid out, giving industry sufficient time to plan for this shift and the time has come to move ahead without further ado.
As per the National Gas Policy, the power sector has been given priority over captive power plants and other industrial uses to ensure energy security for the national grid and reduce the dependence on imported fuels. Hence, we need to prioritise the long-term gains — lower tariffs, better resource allocation, and reduced dependence on fossil fuels, these will eventually serve the collective interest of the nation.
ASHRAF ZAIDI
Lahore
Time for action
I am writing this letter with the current dilapidated state of our country in mind. Instead of taking decisive actions and initiating progressive tasks for national development, our politicians remain embroiled in conflicts with other political parties.
Recently, I read in a newspaper about Saudi Arabia and its ambitious Saudi Vision 2030 plan. The plan focuses on key areas such as education, health, infrastructure and tourism development.
My appeal to our government is to take immediate and concrete steps to prioritize similar goals. It is time to redirect energy from political rivalries to essential national reforms. In conclusion, the focus should be on educational reforms, economic development, healthcare improvements and infrastructure projects to secure our country’s future.
MALIK M SHAHWAIZ
Dera Ghazi Khan
Pitching for free trade
The long-drawn-out trade war has been going on between the countries with no possible/immediate solutions in sight. The trade war is a special case, getting attention from across the world and even pushing to the point of blocking other genuine trade deals like jet/flight sale, for example. It is the proper business agreement/deals that will keep the world on the right track, giving impetus to the growth machine.
My native areas like Korkai, Kanyakumari in Tamil Nadu have been widely known for rigorous agricultural activities and business establishments like groceries.
It is only with great effort and hard bargain that people from these areas like Kanyakumari are able to run their businesses. Naturally, countries should understand the business ethics and facts and shun trade war at all costs besides strongly supporting agricultural activities in the best interests of the international community.
The universe has been facing a lot of business and trade challenges straight from time immemorial. However, continents like Asia, America and Europe have started taking steps to reconcile the current fiasco. More to the point, the intercontinental business/trade activities are the need of the hour in the current context.
Economically speaking, the current business statements from the Asian region have been pretty encouraging. Furthermore, sincere efforts and mutual business cooperation are badly needed to expand the potential trade platforms like APEC-Asia Pacific Economic Cooperation, RCEP-Regional Comprehensive Economic Partnership all aimed at encouraging regional business activities through free trade.
Free trade has been deemed to be the best way out of economic slump in contrast to the trade war intended to harm other countries. Any attempt to place an embargo on trade activities will only entail a strong backlash. My native areas have been thriving on easy and free trade, selling the locally procured farm produce like paddy, banana and betel within the region and to outside areas too.
P SENTHIL S DURAI
Maharashtra, India
