By Ayesha Mudassar

ISLAMABAD, August 2 (INP-WealthPK): Pakistan is making efforts to manufacture high capacity and upgrade energy equipment to meet the demand on the distribution and transmission sides, and to export certain equipment, said Raza Abbas Shah, CEO of the Engineering Development Board (EDB) while talking to WealthPK.

Raza said a Power Sector Indigenization Plan (PSIP) has been launched with the cooperation of the Ministry of Energy for development of generation, transmission, and power equipment.

Almost 13 products/sectors have been recognized under the PSIP including transformers, capacitors, solar panels, wind power equipment, towers, poles and energy meters, and overhead transmission line fittings & hardware.

According to the EDB CEO, the PSIP will promote investment, job creation, self-sufficiency in vital infrastructure equipment, saving of foreign exchange reserves through import substitution, and an increase in the sector’s exports, he added. He said Pakistan’s power equipment manufacturing industry is currently producing energy equipment of up to 220KVA in most cases.

Pakistan’s energy sector is heavily dependent on imported fuel and equipment. As a result, a sizable chunk of the foreign exchange is diverted towards meeting the sector's needs.

The power equipment industry consists of a wide range of products used for transmission and distribution of power from plants or grids to businesses, houses, and commercial structures. The primary manufacturing hubs for power equipment are Faisalabad, Sargodha, Gujranwala, Lahore, and Karachi.

The major output of the cluster is sold throughout Pakistan with a few players engaged in exporting products to the Middle East, Africa, Afghanistan, and Bangladesh.

The global market for power transmission and distribution equipment estimated at US$256.5 billion in the year 2020 is expected to reach an estimated size of US$312.8 billion by 2026, growing at a CAGR of 4.8% over the analysis period.

Pakistan has enormous potential to achieve a reliable power equipment market. However, stringent measures are required to reduce reliance on imported power equipment and attain competitiveness in the global market.

Credits: Independent News Pakistan—Wealthpk