Peshawar (Khyber Mail): The energy-rich province of Khyber Pakhtunkhwa (KP) is grappling with a severe industrial crisis due to exorbitant energy costs, with over 75% of local textile spinning units currently non-operational. Prominent business leader, former senator, and ex-chairman of the All Pakistan Textile Mills Association (APTMA) and Khyber Pakhtunkhwa Textile Mills Association (KPTMA), Salim Saifullah Khan, has expressed grave concern over the situation, urging immediate federal intervention.
Despite KP’s self-sufficiency in gas and its capacity to produce cheaper electricity, local industries face an existential threat due to unsustainable energy costs. Mr. Khan highlighted the provincial government’s apparent lack of seriousness in addressing the severe challenges faced by KP’s industrial sector. He emphasized that the high cost of gas and electricity is making industrial operations unviable. “The current energy prices are exorbitant,” Khan stated. “Our industries are not ‘sick’ but are being suffocated by the high costs of utilities. The provincial government seems to be in denial about the severe issues faced by our industries.”
Exacerbating the crisis, the federal government has announced plans to disconnect gas supplies to captive power producers starting January 2024. Khan added that this decision, coupled with the Senate Committee’s revelation of over Rs. 100 billion lost to power theft in Punjab, points to broader issues of mismanagement and neglect.
Khan further criticized the federal and provincial governments for their contradictory stances: while efforts are being made to attract foreign investment through global solicitations, domestic industries are struggling to survive. “How can we expect foreign investors to take interest when domestic businesses are failing, and 50-60% of industrial units have already closed?” Khan questioned, highlighting the potential negative impact on foreign investors in an environment where local industries face severe obstacles.
The closure of factories has led to widespread unemployment and layoffs, contributing to an increase in street crimes and social instability. Khan called for urgent action from both the federal and provincial governments to address the industrial crisis and improve the investment climate.
Khan stressed the need for immediate and effective measures to revive the industrial sector, protect jobs, and stabilize the economy. He urged political leaders and relevant authorities to prioritize this crisis and take decisive actions to prevent further economic and social deterioration.