Energy crisis

The huge, glowing orange bars snake out of a steel press, ready to be cooled. When they are finally cold enough to handle, they are loaded onto trucks at the mill and delivered to construction sites around Pakistan – for buildings or bridges.

This noisy industrial plant in Islamabad is an exception in Pakistan. People are working.

"In this region there are 18 to 20 factories, but at the moment only two of them are operating," says the steel mill's foreman, Khan Afzar.

That the wheels of industry are not turning here and in many other regions of Pakistan has a number of reasons, but the most significant one is that businesses cannot depend on a steady supply of gas or enough electricity, says Shaban Khalid, the owner of the steel mill.

"We used to have gas four days a week. Then, it was only three. One day, they came marching into my office and declared 'sorry, but you won't be getting any more gas - for at least a month. We don't know when it will be flowing again,'" he adds.

Balancing on an energy precipice

Fortunately for Khalid, he was able to switch from gas to coal, which saved him from having to close down his mill. Coal is a lot more expensive, but at least he can continue operating - for the time being. He was forced to lay off 100 workers and sharply cut production. Khalid blames the government for the problems.

"They should have seen that coming a long time ago. They've been governing for four years already. There are new gas fields that just need to be tapped, but first of all, there is no planning, and secondly, they are not concerned about using gas efficiently."

For many years, one resident of Islamabad explains, he and his family did not turn off the flame on their gas oven because it was so ridiculously cheap. He said that saved them using matches.

Khalid is worried that if electricity stops flowing one day - a problem Pakistan has always had - he will have to shut down his steel mill. His employees have a twofold problem to deal with, he says. They are constantly afraid of losing their job and at home they have no guarantee that they will have enough fuel for heating and cooking. This can be an agonizing problem in winter.

"We get electricity every three hours for about an hour. Gas only comes in the middle of the night, so what can we do with that," says steel mill foreman Khan Afzar.

The government lacks resolve

Khan Afzar and his boss agree that the government is ruining the country's industrial base. In addition, the Taliban and terrorism problem has not exactly made Pakistan a magnet for foreign investment.

"Things are looking bleak and every day it's getting worse. There is unemployment, higher prices, inflation; inflation you wouldn't believe," says Khalid.

Author:Kai Küstner / gb
Editor: Anne Thomas