Pakistan’s plan to reach $60 billion in exports by 2027 is now at risk due to the government’s recent decision to raise gas prices for captive power plants (CPPs). These power plants are used by industries to generate their own electricity, and the higher costs could make manufacturing more expensive and less competitive in global markets.
The Pakistan Business Council (PBC) has warned that this price increase will hurt exports and make it harder for local industries to compete with other countries. Gas prices are expected to rise above $15 per mmBtu, which is more than double what manufacturers pay in neighboring countries. This sharp increase could put significant pressure on businesses that rely on in-house power generation, potentially leading to lower production and job losses.
If industries struggle to manage these higher energy costs, Pakistan may find it difficult to achieve its ambitious export target, which is essential for economic growth and stability.
