The industrial sector, which had been excluded from the gas cuts, was hit hard on Thursday when supplies to captive power units were interrupted.
Natural gas supply to all captive power plants has been halted until further notice, according to a notification.
Previously, the gas allotment for export-oriented industrial sectors was decreased to one-third, causing outrage in the textile industry.
The supply of Gas/Regasified Liquefied Natural Gas (RLNG) continues to be a problem for captive plants in the export sector. The administration assured them that the full gas supply will be restored as quickly as possible.
Instead, the government immediately stopped gas supply to one of the economy’s most important sectors, essentially reducing mill capacity to 70%.
Due to dwindling energy supplies, the textiles and apparel industry’s export objective of $21 billion has been lowered to $20 billion for FY 2021-22.
The expansion of the textile sector and the establishment of new factories were projected to boost exports even more, but these new units were unable to start up due to a lack of gas and electricity supplies.
Meanwhile, on June 2, 2022, at 9 p.m., the power shortfall reached its greatest point of 6,822MW. It means that the effective shortfall at the electricity distribution level has risen to more than 7,750 MW, a new high.
And, due to the persisting energy crisis, the masses’ misery is far from over. It will continue to rise, said an official.
Due to high coal prices, the government has formally advised CPEC coal plants not to purchase coal. Adding imported fuels to the energy mix is prohibitively expensive.
To read our blog on “For the first time, Mari Petroleum discovers gas and oil reserves in North Waziristan,” click here.
