Karandaaz will invest over £15 million to promote renewable energy generation and efficiency measures in Pakistani businesses
The agreement was signed between Joanna Reid, Head of DFID Pakistan and Ali Sarfraz, CEO Karandaaz Pakistan. Karandaaz Board of Director’s Chairperson, Dr Shamshad Akhtar was also present at the occasion. Speaking at the occasion, Joanna Reid, Head of DFID Pakistan said, Speaking at the occasion, Dr. Shamshad Akhtar, Chairperson Karandaaz said, Speaking at the occasion, Ali Sarfraz, CEO Karandaaz said, According to the latest World Bank study, more than 75% of Pakistani firms cite energy provision as a major constraint to growth. Where available, electricity provision is costly and inefficient, lowering the competitiveness of industry and services. Daily load shedding and large leakages in the distribution system mean manufacturing firms cite access to electricity amongst the top obstacles to growth. Climate and environment are a global priority for DFID. Domestically and internationally, the UK has been leading the way on climate change. This programme is also an opportunity for Pakistan to draw on UK expertise in clean energy for greener growth.
According to the latest World Bank study, more than 75% of Pakistani firms cite energy provision as a major constraint to growth.
According to the Global Competitiveness Report, energy shortage has directly impeded Pakistan’s ability to compete in international markets for Pakistan’s export sector. Widespread use of renewable energy and energy efficiency is yet to kick off. 17% of the energy utilised in Pakistan could be saved through energy conservation and efficiency measures, which according to some estimates is equivalent to two hours of power supply each day. A market assessment conducted by the IFC in 2014 found that potential savings range from 11%-14%. The same assessment estimated the demand for renewable energy investment across six industrial sectors at $2.2 billion. Incentives for firms and residences to switch to renewables have been initiated, but these have so far proven ineffective and the use of energy from renewable sources, excluding hydropower, is still under 4% of total energy generation as estimated by Hydrocarbon Development Institute of Pakistan.
