Ensuring Karachi’s stake in national energy planning
It is often said — and increasingly heard in conversations with residents, business leaders, and industrial stakeholders — that Karachi does not receive the focus it deserves in national policymaking. While I have consistently defended the commitment of the Federal Government and policy institutions towards the city’s development, recent developments call for a closer, more balanced examination.
The Federal Cabinet’s approval of the Integrated Generation Capacity Enhancement Plan (IGCEP) 2025–2035, under the leadership of Prime Minister Shehbaz Sharif, is a pivotal step for Pakistan’s energy future.
However, the exclusion of K-Electric’s 640MW of competitively bid, investor-backed solar energy projects from the plan have raised valid concerns among stakeholders and residents of Karachi. This omission risks undermining years of coordinated work between regulators, investors, and the utility to diversify the city’s energy mix and reduce dependence on the expensive fossil fuels as well as on the national grid — an objective previously encouraged by the federal government itself.
Previously, K-Electric was asked to advance renewable energy generation under defined timelines. In response, the utility fully complied with the government’s instructions and moved swiftly with competitive processes and regulatory compliance, submitting projects that promised clean, cost-effective power at scale. These included a 200MW solar project in Jhimpir, a 150MW hybrid site in Vinder Bela, and additional initiatives in collaboration with the Sindh Government.
This move was backed by serious investor-backed proposals, Nepra approvals, and competitive bidding. But now, suddenly, everything has changed. In the strange logic of Pakistan’s energy planning, spending hundreds of billions in subsidies is perfectly acceptable, so long as no one dares to bring cheaper electricity to the table.
Take aside for a moment Karachi’s interest and the rights of its residents, these renewable energy projects promise electricity at a fraction of current fuel costs. If implemented, they could save the government Rs. 10 to 15 billion........
© Business Recorder
