Pakistan needs energy, water efficiency practices in industry to alleviate power shortages: IFC-funded report

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WASHINGTON, May 24 (APP): Improvement in water and power management in the industrial sector can help reduce Pakistan’s power shortages and increase manufacturing productivity, according to a new study funded by International Finance Commission (IFC), a lending arm of the World Bank.

The report, led by the National Productivity Organization and the Cleaner Production Institute found that reducing the amount of power, water and raw material used in industry would help over energy shortages, conserve natural resource and improve productivity.

These findings came from an analysis by Ernst and Young of more than 200 resource efficiency audits from manufacturers in the textile, sugar, leather, and pulp and paper industries.

According to the report, some industries could save more than one-fifth of their power consumption, along with billions of Pakistani rupees, by embracing energy-efficient technology.

IFC, in partnership with the Australian Department of Foreign Affairs and Trade, the Korea Green Growth Partnership, and the Earth Fund Platform, supported the production of this report. It is part of a larger IFC effort to raise awareness about the opportunities and obstacles facing industrial manufacturers.

“Implementing energy and water efficiency practices could help save more than $76 million in energy costs, the equivalent of about 25 percent of the electricity required for the city of Karachi,” said Abdul Ghaffar Khattak, Chief Executive Officer of the NPO, citing the analysis.

The textile sector, the main contributor to country’s exports could save  nearly 22 percent of its total energy consumption by implementing cleaner production technologies.

The sugar industry, which places Pakistan among the world’s 10 largest producing nations, could also save at least 1.7 billion Pakistani rupees annually by investing in efficiency improvements.

“By adopting energy and resource efficiency practices, industries can become more efficient and increase their productivity,” said Nadeem Siddiqui, IFC Senior Manager in Pakistan. “Partnering with leading institutions in Pakistan in research like this is an important part of IFC’s strategy.”
However, the study highlighted challenges in achieving the desired goals. Some of the obstacles are weaken forcement of environmental regulations and a lack of financial investment in energy-efficient production.

One of the reasons for this is often insufficient awareness about cleaner production technology and its benefits, according to the analysis.

“Our work aims to demonstrate the business case for resource efficiency by showcasing the market volume and interest in savings measures,” said Azher Uddin Khan, Chief Executive Officer of the CPI.

IFC is one of the largest investors in Pakistan’s power sector. Pakistan represents IFC’s second-largest exposure in the Middle East and North Africa region.