Though the formation of Government-Industry Energy Council (GIEC) by the Prime Minister is a step in the right direction, the need of the hour is to initiate work on doable power generation projects, as energy is an essential driver of the economy and things are fast getting out of hand with every passing day.
This was stated jointly by the Chairman of Lahore Township Industries Association (LTIA), Haroon Shafiq, and Pakistan Industrial and Traders Association Front (PIAF) Chairman Sohail Lashari in a statement on Monday. They said that it was very unfortunate that not only the industry but the masses also were suffering badly due to over 3000 mw electricity shortage.
They said that the manufacturing sector was in deep trouble and its growth could not exceed 2.3 percent despite best efforts by the private sector. They said they feared that if the situation remained the same for quite some time now, the manufacturing sector growth would go down further.
They said that if a little attention had been given towards the construction of water reservoirs in the country, the situation today would have been quite different. He said that the government should also immediately initiate exercise to develop consensus for early construction of Kalabagh dam, which is one of the best solutions to the acute shortage of energy. Cheaper electricity is not only essential for the industrial sector but it is also vital for the agriculture. They said that besides the industrial sector, the agriculture sector would also suffer badly because the produce would be costlier when the tubewells would be running on diesel instead of electricity.
They said that the energy shortage is the single most critical factor that is responsible for poor domestic output. This, in turn, is compromising the government's ability to raise its collections from taxes levied in the value-added mode, including sales tax and excise duty. High energy costs, passed on to the consumers are fuelling inflationary pressures. Without ensuring uninterrupted energy supply to the industry, the government cannot possibly hope to increase the Gross Domestic Product growth rate or indeed facilitate competition of Pakistani exports with those of Pakistan's competitors.