Jam Kamal Pledges Support For Chemical Industry Amid Power, EFS Challenges

Federal Minister for Commerce Jam Kamal Khan on Wednesday assured the government’s full support in addressing critical challenges related to captive power, energy costs, and Export Facilitation Scheme (EFS)

ISLAMABAD, (UrduPoint / Pakistan Point News - 11th Dec, 2024) Federal Minister for Commerce Jam Kamal Khan on Wednesday assured the government’s full support in addressing critical challenges related to captive power, energy costs, and Export Facilitation Scheme (EFS).

He said during a meeting with Pakistan Chemical Manufacturers Association (PCMA), said a news release.

Jam Kamal highlighted the government’s proactive engagement on these issues, adding that he had already taken up the matter at the level of the Prime Minister and held inter-ministerial discussions with the Finance, Power, and Petroleum Ministries.

“This is not just an energy issue; it may otherwise impact exports, industry, and the broader economy,” he emphasized.

The minister revealed ongoing talks with international partners to secure relief while ensuring compliance with the commitments.

Jam confirmed the Finance Minister’s willingness to support the industry and promised high-level advocacy if necessary.

“If required, the direct engagement at highest level will be made with the international financer to ensure sustainability for the industry,” he said.

The minister endorsed PCMA’s concerns about the high cost of switching from captive power to the national grid.

“Industries cannot absorb the jump from 7.7 cents to around 16 cents per kWh without severe economic consequences,” he noted, warning that closures would result in unemployment, reduced exports, and a negative investment climate.

Minister Jam urged the industry to remain engaged with the government, assuring them of continued support. “We are with you and are pursuing these matters at all levels to ensure the sustainability of the sector,” he concluded.

The meeting underscored the importance of collaboration between the government and industry to sustain growth and competitiveness in challenging economic conditions.