Unstable Energy Policies Bringing Pakistan to the Brink of Economic Collapse! President HCSTSI Saleem Memon Urges the Government to Take Immediate Action

Hyderabad :  President Hyderabad Chamber of Small Traders & Small Industry (HCSTSI), Muhammad Saleem Memon has expressed deep concern over the government's inconsistent and contradictory energy policies, stating that Pakistan’s energy sector is in the hands of inexperienced and irresponsible individuals, pushing the country’s economy toward disaster.
He pointed out that expensive Independent Power Producers (IPPs) were introduced without a comprehensive
strategy. It later became evident that these power plants were running on imported furnace oil and coal, making
electricity production exorbitantly expensive. Billions of dollars were spent, yet due to poor planning, when
electricity demand decreased, the government was forced to pay "capacity charges," skyrocketing the circular debt.
Today, Pakistan's circular debt has surged to a staggering PKR 5.42 trillion, with PKR 2 trillion being paid solely to IPPs. Furthermore, the government initially promoted Solar Energy by introducing On-Grid systems, encouraging the public to install solar panels with the assurance that surplus electricity would be purchased by the government.
However, this policy is now being altered, and instead of purchasing electricity at PKR 27 per unit, the government plans to reduce the rate to PKR 10 per unit. This shift is prompting people to move towards Off-Grid systems, which will further increase capacity charges and inflict more economic damage.
HCSTSI demands that the government formulate a comprehensive and long-term energy policy to prevent further economic damage caused by frequent policy changes. The country can no longer afford haphazard decision-making that drives industries and businesses toward closure. There must be an immediate review and annulment of exploitative contracts with IPPs to curb the growing circular debt and stabilize electricity prices. The transmission and distribution infrastructure must also be strengthened through immediate investment to ensure efficient power delivery and minimize technical losses. Without addressing these issues, the burden of inefficiencies will continue to fall on the industrial and business community, as well as ordinary citizens.
There is an urgent need to bring stability in electricity tariffs and provide special relief to industries and businesses to keep the economic cycle running. The government must also implement a stable and transparent policy for solar energy and other renewable sources to restore public and investor confidence. Energy security is not just about power generation but about ensuring that policies are sustainable, realistic, and beneficial for the economy.
President Saleem Memon emphasized that it is alarming that Pakistan’s energy policies are dictated by individuals
who lack a fundamental understanding of the sector. The country is now on the brink of default due to these flawed policies, with the burden falling on industrialists, traders and the general public. The consequences of these policies are already evident in crippling power tariffs, increased cost of doing business, and growing uncertainty in the economic sector.
He alarmed that if the government does not take immediate corrective measures, the energy crisis will intensify,
leading to the total economic collapse of Pakistan. It is imperative that those responsible for policy decisions take
accountability and implement a rational, business-friendly approach before it is too late.