KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Tuesday voiced strong concerns regarding the federal government’s approval of a 1263MW power plant to be run on imported RLNG. This plant, being developed by Punjab Thermal Power Ltd in Jhang, has sparked significant debate over its economic and environmental implications.
FPCCI President Mian Nasser Hyatt Maggo, in an official statement, demanded a comprehensive explanation from the government regarding the rationale behind approving such a project. Highlighting the high costs associated with the plant, he noted, “This new facility will generate electricity at 6 cents USD/kWh using imported RLNG and as much as 11 cents USD/kWh on High-Speed Diesel (HSD). In stark contrast, environment-friendly wind and solar power plants can produce electricity at merely 3.5 cents USD/kWh.”
The FPCCI warned that this decision would exacerbate Pakistan’s already mounting circular debt, inflate the import bill, and increase energy costs, consequently raising the cost of doing business. The FPCCI stressed that renewable energy projects, particularly wind and solar, are far more economical and do not rely on imported fuel, thereby reducing pressure on the exchange rate and import bill.
President Mian Nasser Hyatt Maggo pointed out that 12 renewable energy projects, totaling 670MW and approved by NEPRA at an average tariff of 3.5 cents USD/kWh, had been sidelined despite their potential to attract $470 million in foreign direct investment (FDI). The FPCCI questioned the deliberate discouragement of these sustainable alternatives in favor of costlier and less eco-friendly options.
The FPCCI also expressed concern over the involvement of vested interests in the RLNG-based power plant, warning that such decisions could lead to scandals similar to those surrounding Independent Power Producers (IPPs). “Under the current economic conditions, such projects will only create further financial instability,” cautioned Maggo.
The FPCCI reiterated its call for prioritizing renewable energy solutions, which offer long-term benefits to the economy and the environment. It urged the government to reassess its energy policies and avoid decisions that could undermine the country’s financial stability.