Electricity issues cast dim light on engineering sector

ISLAMABAD: Despite surplus power generation capacity, most of the country’s engineering firms have held electricity scarcity and its poor supply responsible for their inability to meet production goals and achieve operational efficiency, thus losing competitiveness, whereas 95 per cent firms reported no access to finance. This has been disclosed by the state-run Pakistan Institute of Development Economics (PIDE) in a study spearheaded by its vice chancellor, Dr Nadeemul Haque. The study — based on a representative survey of 328 engineering firms from across the Golden Triangle of Lahore, Gujrat and Gujranwala — revealed compelling statistics that underscore the critical concerns affecting the industry’s growth and productivity. One of the foremost issues outlined in the report is the severe impact of electricity unavailability on daily production targets. Some 83pc firms said the unavailability of electricity created hurdles in achieving their production goals, resulting in a gap between demand and supply. Some 78pc firms reported that electricity scarcity hindered their operational efficiency, a crucial factor where economies of scale need to be achieved.