In a groundbreaking initiative aimed at accelerating industrial development, the Cabinet Committee on Energy (CCoE), chaired by Prime Minister Shehbaz Sharif, has approved a new power supply system for Special Economic Zones (SEZs) and industrial estates. This landmark decision introduces a uniform electricity tariff and streamlines power management to enhance industrial competitiveness and promote economic growth.
Key Highlights of the New Power Supply System
Single-Point Power Supply
The new system permits SEZs and industrial estates to receive electricity at a single point, significantly simplifying the power distribution process. Zone developers and industrial estate administrators will independently manage electricity connections, bill collection, and other related matters, eliminating the need for involvement by distribution company (DISCO) officials.Ease of Doing Business
Zone developers will no longer require additional licenses to supply electricity within their zones. This reform is expected to reduce bureaucratic hurdles, lower operational costs, and foster a business-friendly environment.
Dedicated Operations Mechanism
A specific operations and management framework is being developed by the Power Division and the National Electric Power Regulatory Authority (NEPRA). This mechanism is expected to be implemented within two to three months, ensuring uninterrupted power supply and facilitating industrial growth.Impact on Exports and Employment
By ensuring a consistent and affordable electricity supply, the new system is anticipated to boost exports, create job opportunities, and pave the way for sustainable economic growth.
Circular Debt and Power Sector Reforms
During the CCoE meeting, the Power Division presented a report showcasing significant improvements in circular debt and power sector reforms. Between July and November 2024, the circular debt reduced by Rs 12 billion, marking a substantial improvement of Rs 380 billion compared to the previous year.
Additional achievements include:
- 96% Collection Efficiency: The highest recovery rate in the power sector’s history.
- Reduction in Distribution Losses: A Rs 53 billion reduction in losses.
- Lower Electricity Costs: A decrease of Rs 4.64 per unit in electricity prices due to reforms and improved efficiency.
Prime Minister’s Vision for Industrial Growth
Prime Minister Shehbaz Sharif emphasized the importance of uninterrupted and affordable electricity for national development. He stated:
“We are rapidly moving towards fulfilling our commitment to ease of doing business in Pakistan. This initiative will accelerate industrial growth, create employment opportunities, and enhance exports. Improved power systems will enable industries to play a pivotal role in economic development.”
The meeting was attended by key government officials, including Deputy Prime Minister Ishaq Dar, Federal Ministers Ahsan Iqbal and Awais Khan Leghari, and senior representatives from the Power Division and NEPRA.