Energy Sector May Take Circular Debt to Rs 4 Trillion by 2025

Ahsan Zafar Syed, CEO of Engro Energy Limited, estimates that if DISCO operations are not enhanced, the energy sector’s inefficiencies will bring the circular debt to approximately Rs 4 trillion by 2025.

On Friday, he spoke at the online Corporate Pakistan Group (CPG) Dialogue, organized under the theme “Fixing the Power Sector of Pakistan.”

Speakers at the dialogue, including CEO Engro Energy Ahsan Zafar Syed, Dr Fiaz Chaudhry, Professor of Practice, Director of the LUMS Energy Institute Werner-Von Siemens Chair and Aftab Mahmood Butt, Managing Director of Kott Addu Power Company KAPCO, believed that it was important to fix more sustainable energy policies, planning and distribution.

While talking about the output of the energy sector, Ahsan Zafar said it was affected by several challenges, including increased circular debt, excess power, low demand, high electricity costs, etc.

“These problems can be tackled by improving the efficiency of DISCOS, by proper and independent power planning, which should concentrate on the parameters of both the supply side and the demand side, and by moving industrial captive power generation to the grid by taking steps to improve industrialization,” he said.

“While stating the facts that have affected the Gross Domestic Product (GDP), Ahsan Zafar Syed said,” Given the country’s deflated demand, the economy will remain relatively depressed over the years and, as a result, electricity demand for GDP will also remain low, causing excess power.

“Planning should be improved and the efficiency of the power supply should be sufficient, system peak demand reduced and the transmission, distribution and generation sector extended by making investments, the development of an independent system operator and further investment in the distribution infrastructure will help to minimize unnecessary technical losses,” he said, suggesting improvements in current planning.

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