Energy crisis and the Punjab industrial sector

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Punjab contributes over 60 percent of the GDP but bears the entire brunt in terms of power shortages. The federal government is heavily dependent on Punjab in order to earn wealth to run the day to day affairs of the state but if it treats Punjab like a stepbrother, how would it expect Punjab to earn revenue for them? The most badly affected sector due to energy shortages is the industrial sector. Punjab is housing a huge number of industries but is unable to provide energy to these industries.

Punjab houses 60 percent of the industry with 21,000 industrial units. Punjab consumes 65 percent of the local national consumption of electricity which means that energy shortage in Punjab means an end to the income from industries.

Another consequence is the mass unemployment in Punjab as over 10 million industrial workers, including daily wagers, earn their livelihood from industrial units. Punjab industry is facing acute shortages of both gas and electricity for the last three years with over 700 mmcfd shortage of gas in SNGPL system and 3300 MW shortage in electricity. This results in massive loss in national GDP growth.

Sports and surgical goods sector are facing 50 percent production loss which is causing loss of Rs 68.77 million daily. There are 12 fertiliser units in Punjab which are closed due to discontinuation of gas and 4239 workers have been affected.

There is 100 percent loss of production in fertiliser industry. The net result is a loss to Punjab as industry owners are relocating their industry from Punjab to Sindh and abroad. The textile industry is adversely affected as it makes losses in the shape of taxes and earns less from low production.

The loss in export of textile is Rs 35 million per day which is a huge loss for Pakistan. Alone in the textile industry around 191100 workers are unemployed but this segment of society is heavily taxed. Fertiliser rates are also going up and still at this hefty price the fertiliser is adulterated and impure.

For all this, the central government is not to be blamed alone because after the 18th amendment it is Punjab government’s responsibility to produce energy and use it for the provincial consumption but the Punjab government has also failed in living up to people’s expectation together with the central government.

HAIDER ALI

Lahore