KE & House of Habib Collaborate to Promote Localization in Pakistan’s Power Sector
Karachi, December 07, 2023 – In a significant move towards promoting the ‘Made in Pakistan’ ideology, KE (Karachi Electric) and House of Habib have recently signed a Memorandum of Understanding (MoU).
This collaboration, marked by a ceremony at KE’s Head Office, focuses on sourcing locally manufactured components for KE’s electricity infrastructure requirements, thereby bolstering Pakistan’s power sector.
Strategic Partnership for Localization
This joint venture between KE and the House of Habib is a strategic step towards localizing the supply chain in Pakistan’s power sector. By emphasizing the use of locally sourced components, both organizations aim to strengthen and indigenize the power sector supply chains.
This collaboration is in line with KE’s commitment to initiatives focused on localization and aligns with House of Habib’s manufacturing expertise.
KE’s Commitment to Local Sourcing
KE has already initiated efforts to source reliable local alternatives for essential components. These include protection covers for HT bushing, DO Cutout, fuse base, cable end caps, and personal protective equipment (PPE) like safety gloves.
This initiative not only supports local industries but also aims to reduce lead times and mitigate foreign exchange losses, with an estimated gain of PKR 30 billion for KE over the next 7 years.
House of Habib’s Manufacturing Expertise
The KE & house of Habib collaborate online, with its robust manufacturing capabilities, will supply KE with various components essential for the functioning of power plants. These include 300 sq mm pre-molded HT cable joints, piercing connectors, cable ties, and clamps.
House of Habib’s role is crucial in integrating these components to match global quality standards, thereby enhancing the efficiency and resilience of KE’s power infrastructure.
Economic and Environmental Impacts
The partnership is set against the backdrop of tough economic conditions in Pakistan, including fluctuations in KIBOR and rupee-dollar parity, which have impacted the cost of doing business.
By shifting towards local procurement, K Electric aims to reduce its reliance on imported materials, which currently stands at over 80%. This transition is part of KE’s broader Investment Plan worth PKR 484 billion leading up to 2030.
Empowering Local Industries and Sustainable Supply Chains
This collaboration is more than just a business strategy; it represents a commitment to empowering regional economies and fostering sustainable supply chains.
It presents an opportunity to catalyze the growth of Pakistan’s industrial sector, making energy more accessible and affordable, and reducing the impact on the National Exchequer.
Vision for a Self-Reliant Energy Sector
Both KE and House of Habib envision a journey towards a brighter future, marked by self-reliance and resilience in energy infrastructure. This partnership is a pioneering step in enhancing Pakistan’s industrial footprint and shaping the future of the energy sector.
It underscores the importance of collaborative efforts to achieve a successful transition to localized sourcing in the power sector.
Ending Lines
In conclusion, the KE and House of Habib partnership in December 2023 to promote localization is a landmark initiative in Pakistan’s power sector. It not only supports local manufacturing but also aligns with the national goal of economic self-sufficiency, contributing significantly to the sustainable development of the country’s energy infrastructure.
