The Special Investment Facilitation Council (SIFC) has initiated plans to revive the inactive Jamshoro Joint Venture Limited (JJVL) plant, marking a significant development in Pakistan's energy sector recovery efforts.
The council has directed JJVL and Sui Southern Gas Company (SSGC) to finalize a revenue sharing agreement by January, addressing the plant's dormancy that has resulted in $432 million in foreign exchange losses since June 2020.
The shutdown has affected approximately 5,000 jobs and disrupted energy supply to hundreds of thousands of households. According to official projections, the plant's revival could potentially serve the energy needs of 750,000 households across Sindh and other regions of Pakistan.
SIFC has stipulated that JJVL must clear all outstanding dues before gas supply resumes to the facility. The restoration project is expected to increase energy production capacity and potentially lead to reduced LPG prices in the domestic market.
The revival initiative aligns with SIFC's priority focus on energy sector development and is anticipated to have positive implications for Pakistan's economy. Officials expect the plant's reactivation to help address both energy supply challenges and economic concerns.
The council's intervention represents part of a broader strategy to optimize Pakistan's energy infrastructure and reduce operational inefficiencies in the power sector. The project's implementation timeline will be contingent upon the successful completion of the revenue sharing agreement and settlement of outstanding payments.
Industry analysts suggest that the plant's restoration could contribute to stabilizing local energy markets and improving the country's foreign exchange position through reduced energy imports.
