BMP underscores need for comprehensive energy reforms

LAHORE: The Federation of Pakistan Chambers of Commerce and Industry’s (FPCCI) Businessmen Panel (BMP) has called for comprehensive energy-sector reforms, warning that Pakistan is spending around Rs3.5 trillion annually on avoidable energy imports, draining foreign exchange reserves and increasing electricity costs for businesses and consumers.

BMP Chairman and former FPCCI president Mian Anjum Nisar said the country could no longer afford excessive dependence on imported fuels and equipment when significant potential existed to conserve energy, utilise available power generation capacity and strengthen local manufacturing.

He said Pakistan’s energy crisis stemmed not only from resource shortages but also from poor planning, policy inconsistencies and inadequate development of indigenous industrial capabilities. The mismatch between installed generation capacity and relatively stagnant electricity demand had increased capacity payment obligations, while expensive LNG imports continued to burden the economy.

Anjum Nisar stressed the need to enforce energy conservation building codes nationwide, promote efficient cooling systems and improve insulation to reduce electricity consumption, particularly during peak hours.

He also called for expediting the Power Sector Indigenisation Plan to revive domestic manufacturing of transmission and distribution equipment, including conductors, switches and electrical components. Local manufacturers should receive policy consistency, affordable financing, technology and long-term orders.

Urging greater investment in hydropower, solar and wind energy, he said a least-cost energy strategy based on indigenous resources, efficiency and import substitution was essential to improving industrial competitiveness, exports and economic stability.

Copyright Business Recorder, 2026