Govt planning to reduce import bill with power sector indigenization plan

power sector indigenization

The Engineering Development Board (EDB) has unearthed several sectors and products under Power Sector Indigenization Plan (PSIP) in order to reduce the import bill by increasing local production of power equipment like switchgear, heavy engineering goods, Extra-High Voltage (EHV) panels, energy meters and a list of related products. 

While talking to the media, EDB officials unveiled that different sectors have been recognized after consulting with the concerned stakeholders to cut down the import bill of power equipment. 

The officials further informed the media men that as per PSIP, the local production of power equipment will be enhanced by working on the sectors including iron and steel, heavy engineering goods, switchgear and Extra-High Voltage (EHV) panel, cable, energy meters, and conductor, insulators, towers and poles, lightning arrestors, overhead transmission line fittings and hardware, solar panels and similar equipment, transmission line construction, wind power equipment,  and services, and capacitors. 

Read more: USAID launches $23.5 million power sector improvement project in Pakistan

The officials remarked that EDB is carrying out power sector indigenization plan efforts to improve the base of local equipment not only to cater to the demand of distribution and transmission side rather it also aims to further develop the higher capacity equipment along with upgrading the technology base. 

Moreover, after identifying these sectors, the next phase is to decide on tax exemptions and incentives for them for growing their local production as Pakistan’s energy sector relies heavily on imports, the officials added. 

EDB officials further noted that Pakistan’s power equipment manufacturing industry now generates energy equipment up to 220 Kilo Volt-Amps (kVA) from 132 kVA in most cases. At present, about 10 percent of the total demand is being catered through the local industry besides exporting certain equipment to make a foreign exchange for the country, the officials said. 

Meanwhile, the Engineering Development Board with the assistance of the Ministry of Energy is preparing the PSIP for the development of the production, transmission, and distribution of power equipment. 

Most Popular

To Top