Anjum Nisar notes Pakistan’s industrial power at 13.5 cents/kWh versus Nepal’s 6.4 and India’s 8.5–9 cents
ISLAMABAD, SEPT 28 /DNA/ – The Federation of Pakistan Chambers of Commerce and Industry’s Businessmen Panel (BMP) Chairman Mian Anjum Nisar has said Pakistan can no longer afford to lag behind its neighbours in tapping its natural resources for energy security and export earnings, urging the government to learn from Nepal’s recent success in turning hydropower into a regional export industry.
While addressing a delegation of trade and Industry here at PIAF office, he noted that Nepal had moved from chronic power shortages a decade ago to a surplus that now allows it to supply electricity to India and Bangladesh under long-term contracts at tariffs far lower than Pakistan’s domestic rates.
Mian Anjum Nisar pointed out that Nepal’s state-owned Nepal Electricity Authority signed a landmark agreement with Bangladesh earlier this year to export 40 megawatts of surplus power between June and November each year, routed through India’s transmission grid, at an agreed tariff of about 6.4 US cents per unit. This is in addition to more than 360 megawatts of electricity Nepal is already selling into India, with several other projects in the pipeline. “If a mountainous country with a much smaller economy can achieve this transformation, there is no reason Pakistan, with its vast untapped hydropower potential, cannot do the same,” he remarked.
According to Anjum Nisar, Pakistan currently generates roughly 59 per cent of its electricity from imported thermal fuels such as gas, RLNG, coal and oil, while hydropower contributes around 25 per cent and renewables just 5 to 7 per cent. This reliance on imported energy exposes the country to global fuel price volatility and pushes up tariffs for industry and households. Industrial users now pay on average about 13.5 US cents per kilowatt-hour, compared with Nepal’s export price of 6.4 cents and India’s average industrial tariff of about 8.5–9 cents. Even Bangladesh, despite being a power importer, is paying less per unit for some of its supply than Pakistan’s own manufacturers, he said. “We are effectively pricing our industries out of regional markets,” he warned.
He noted that while Pakistan’s hydropower plants, once built, can generate electricity at a low levelised cost — the tariff for major existing hydropower projects averages around 4 to 5 US cents per unit — the share of such projects remains too small because of slow dam construction, regulatory bottlenecks and delayed investment decisions. “The tragedy is that our cheapest energy source is also our most under-utilised. By accelerating projects like Diamer-Bhasha, Mohmand and Dasu, and by streamlining approvals for private sector hydropower, we could double the share of clean, low-cost electricity in less than a decade,” Nisar said.
He argued that Nepal’s model shows the benefits of focusing on indigenous resources, transparent pricing and regional interconnection. Not only has Nepal achieved energy security at home, but it has also begun to earn steady foreign exchange through power exports. Pakistan, he said, should design a policy framework that encourages similar cross-border electricity trade once its own surplus is achieved. “This would stabilise our power sector finances, reduce dependence on imported fuels and create a new export industry for Pakistan,” he said.
Anjum Nisar urged the government to adopt a multi-pronged approach: prioritising hydropower and renewable projects in public sector planning; offering tax breaks and concessional finance for private investors in green energy; tightening controls on theft and distribution losses; and revising the tariff structure to reward efficiency. He also called for a more proactive role by regulators in clearing pending hydropower projects and setting transparent wheeling and transmission rules so that private producers can supply power directly to industrial clusters at competitive rates.
He emphasised that energy policy should be treated as an integral part of industrial and trade policy. “High tariffs are one of the biggest reasons for our export stagnation. If we can lower the cost of electricity through indigenous generation, our textile, engineering and IT industries will regain competitiveness and create jobs,” he said. He added that cheaper, cleaner power would also help Pakistan meet international environmental standards, which are becoming prerequisites for market access in Europe, North America and the Gulf.
Nisar said the government should also look at regional examples of integration beyond South Asia. The European Union, Gulf Cooperation Council and ASEAN have all made cross-border electricity trade a pillar of their economic strategies, allowing countries to balance seasonal surpluses and deficits and attract investment into generation and transmission infrastructure. “Pakistan should not think only in terms of self-sufficiency but also in terms of becoming an energy hub for the region. This requires vision and urgency,” he said.
He concluded by saying that the present moment offers a rare opportunity to reset Pakistan’s energy trajectory. Global investors are increasingly interested in financing green and renewable projects, while technologies for hydropower, solar and wind are becoming cheaper. “If we take decisive action now, we can build an energy system that is affordable, sustainable and export-oriented within the next decade,” he said. “Nepal has shown it can be done. The only question is whether we have the political will to do it faster and at scale.”
