KARACHI: K-Electric Limited, in collaboration with Nutshell Group, jointly hosted a National Policy Dialogue on “Localisation for Growth” at a local hotel in Karachi.
The dialogue addressed the urgent need to explore options for indigenisation and sourcing materials from local avenues for Pakistan to build a resilient economy.
“Localisation is a dream we must achieve,” CEO KE Moonis Alvi stated this while addressing the participants.” Minister of State for Petroleum, Dr Musaddik Malik, Chairman Nepra Tauseef H Farooqi, Governor Sindh Kamran Tessori, and Dr Shamshad Akhtar, Chairperson Pakistan Stock Exchange were also present.
Commenting on the need for industries, academia, government, and private sector to work together, Moonis shared the opportunities present in Pakistan’s energy sector. Investment in infrastructure is vital requirement and KE itself has shared a PKR 484 billion investment plan over the next 7 years which will target improvement in transmission and distribution.
The plan outlines the addition of new grids, cables, and equipment against projects supporting growth, reliability and further reduction of losses in the system. The company said currently 70% of its procurement is imported materials which they are trying to reduce and go local wherever possible. With support of local industries, KE highlighted that not only the company but power sector must come together to achieve this ambition. KE has already begun opting for locally produced spares such as reactor coils, gear box shafts, bushing covers, jointer slices and fault indicators. Opting for ‘Made in Pakistan’ innovations by leading manufacturers in power sector value chain is making us more efficient with reduced lead times, minimized supply risk, and significant savings on foreign exchange, the CEO KE said.
Founder & CEO, Nutshell Group, Muhammad Azfar Ahsan, welcomed the guests and reiterated the dire need for Pakistan to prioritise work on the Charter of Business to enable local businesses to enhance impact through local empowerment. The Dialogue was well attended by the public, private stakeholders and government figures including Senator Dr Musadik Malik, Minister of State, Ministry of Energy, Khurram Dastagir, Federal Minister for Power, Governor Sindh Kamran Tessori, representing the Government and elaborating on public initiatives.
Dr Malik’s address focused on the need to understand the ground realities as well as the potential and why localization is not a demand but a need. He felt that instead of relying only on one-time solutions, we should strive for a strong indigenous footprint.
“When we talk about localisation, we must develop clusters, where several economic activities are taking place in one geographic area. Amalgamations are also required where we involve academia, so that we can upgrade our education system as well. Soon, we aim to bring down the UFGs (unaccounted for gas) and the circular debt to zero, but that doesn’t mean all the problems would vanish; rather we still have a long way to go. Above all, we need to build a level playing field where competition is on productivity and innovation alone.”
The discussion was carried forward by Tauseef H Farooqui, Chairman Nepra. He said: “Localisation is the only way forward; the world is progressing with zero asset policy. Assets should be zero to minimise liability, and for Pakistan, I feel localisation will be a game changer for the coming generations.”
K-Electric signed five MoUs at the event to promote localisation. K-Electric is focusing on reducing reliance on imported materials, be it equipment, machinery, fuels, or any other resource required for power production. Pakistan can save foreign exchange by promoting locally made products. The initiative by K-Electric and its partners to promote local industry is a step in the right direction. The MoUs signed on Tuesday are as follows:
Alsons Group – Abdul Rehman Allana; KE – Sheraz Kashif
•NEW2 – Saad Ullah Khan; KE – Sheraz Kashif
•Nova Mobility (G&T Group) – Diwan Mustafa; KE – Aamir Ghaziani
•Creative Group of Companies – Mian Sultan Mehmood; KE – Amer Zia
•NED University of Engineering & Technology – Muhammad Tufail; KE – Abbas Hussain Aamir Ghaziani.
CFO K-Electric, presented the vote of thanks. He recapped the discussions and promised that in line with the vision, K-Electric will continue to activate this platform and ensure the participation of stakeholders for the continuous benefit of the populace.
Copyright Business Recorder, 2023