Pakistan fast-tracks provision of power supply to industrial units in SEZs

ISLAMABAD: The government has directed the power distribution companies (Discos) and developers of Special Economic Zones (SEZs) to work out operational modalities to supply electricity to the units being built in the industrial complexes.
Speaking to WealthPK, director general SEZ Abdul Samie said provision of utilities, including power supply, to the SEZs was part of the preferential industrial infrastructure to be made available in the economic zones being built under the second phase of the China-Pakistan Economic Corridor to turn Pakistan into a modern industrialised country.
He said under the current legal framework there could be two modes for supplying electricity to the units inside an SEZ: through one-point purchase, where the zero-point is treated as one-point for purchase of electricity by zone developer in bulk, wherein inside distribution has further two modes; distribution inside by zone developer, which would require that zone developer has distribution licence and supplier licence of National Electric Power Regulatory Authority (Nepra); and distribution by Discos directly to zone enterprises. Under this mode, the management of tariff may be done by the Discos. However, considering the role of developer in SEZ planning, the load management would have to be done by the zone developer, he added.
Speaking to WealthPK, Dr. Liaqat Ali Shah, Executive Director and Head of Policy Division Trade and Industrial Cooperation at the Centre of Excellence for China-Pakistan Economic Corridor, explained that the government had sped up the work on SEZs and the recent meetings of all stakeholders of energy supply signified the government’s plan to expediate SEZs without further delay.
He said federal Minister for Planning and Special Initiatives Ahsan Iqbal was engaging Chinese as well as Pakistani stakeholders of SEZs so that all these industrial complexes could be provided with energy supply.
“The Rashakai Special Economic Zones in Nowshera district of Khyber Pakhtunkhwa will be operationalised this year as all the requirements, including utilities, have been provided to this special economic zone. All the other special economic zones will also be provided with electricity to make them operational as soon as possible,” he added.
Commenting on these developments, Senator Anwar Kakar, a member of Senate Committee on Privatisation, told WealthPK that speedy work on provision of energy to SEZs was a priority of the government.
He said that the SEZs provided immense potential for investment to both local and foreign investors.
He said a German delegation comprising representatives of different companies had recently visited Pakistan and shown interest in investment in Gwadar deep seaport and SEZs.