Page 29 - CMA Journal (May-June 2025)

Focus Section

CMA Viewpoint: The Strategic Contribution • Engage CMAs to assess operational efficiency and
in Alleviating the Energy Crisis optimize energy cost structures.
Chartered Management Accountants (CMAs) occupy key • Leverage digital tools for real-time energy
roles across various industries and are well-positioned to monitoring, forecasting, and planning.
promote environmentally responsible business practices For CMAs and Professional Bodies:
and efficient energy cost management.
• Develop certification programs in sustainability
By combining financial expertise with operational reporting and energy management.
insight, CMAs offer a strategic perspective to guide • Advocate for data-driven policymaking by engaging
informed energy and investment decisions. Their with government and industry stakeholders.
contributions can include:
• Create industry-specific frameworks for energy
• Identifying areas of excessive energy consumption benchmarking and performance evaluation.
and recommending cost-saving alternatives
• Publish research papers and host roundtable
• Developing scenario-based budgeting models that discussions on industrial energy challenges.
factor in variables like price volatility and energy
• Facilitate the development of case studies
outages
showcasing successful energy optimization
• Assessing the feasibility and ROI of investments in
strategies.
alternative energy sources such as solar, wind, and
biogas Conclusion
• Integrating energy-related KPIs into performance Pakistan's path to long-term business sustainability is
dashboards, aligning operational efficiency with
complex and fraught with challenges—especially in the
sustainability goals
energy sector. However, these challenges also present
• Formulating risk mitigation plans to ensure energy
opportunities for innovation, strategic planning, and
supply security and business continuity
collaborative action.
• Leading ESG (Environmental, Social, and
While persistent power shortages continue to drive up
Governance) disclosure initiatives to enhance
transparency and investor confidence production costs, professionals like Chartered
Management Accountants (CMAs) can play a pivotal role
• Applying green costing and environmental costing
models to evaluate the long-term impact of in helping businesses navigate these pressures through
energy-related decisions informed decision-making, sound financial planning, and
efficient resource management. The gas sector, too, must
Recommendations for Stakeholders
shift its focus toward conservation, technological
For the Government and Regulators:
upgrades, and demand rationalization.
• Invest in transmission and distribution (T&D)
CMAs must embrace dual responsibilities—as cost
infrastructure to reduce technical losses.
managers and stewards of sustainability. Their unique
• Rationalize gas pricing to promote conservation and
blend of financial acumen and operational insight
efficient usage.
enables them to translate data into meaningful
• Promote net metering and incentivize private sector
strategies. Their expertise will be essential in building a
investment in renewable energy.
resilient, competitive, and future-ready business
• Strengthen regulatory frameworks to attract greater
environment in Pakistan.
investment in the energy sector.
• Decentralize energy planning to the provincial level It is time to move away from reactive approaches and
to encourage localized and context-specific adopt proactive, energy-integrated business planning.
solutions. CMAs possess the tools, knowledge, and foresight to lead
• Secure affordable gas imports from neighboring this transformation—and their role has never been more
countries such as Tajikistan, Iran, and Russia. critical than it is today.
• Construct a north-south pipeline to transport LNG Sources:
from southern terminals to northern regions.
• Pakistan Energy Outlook Report (2021-2030): Integrated Energy
• Upgrade and expand oil refineries to reduce reliance Planning for Sustainable Development
on imported petroleum products.
• Pakistan Economic Survey 2021-22
For Businesses:
About the Author: Jawad Ahmed is an Associate Member of ICMA
• Conduct regular energy audits to identify Pakistan and an ISO-certified Risk Manager currently serving as
inefficiencies and opportunities for savings. Senior Risk Officer at Sui Northern Gas Pipelines Limited (SNGPL). A
• Invest in fuel-efficient backup power systems, such Master of Commerce (M. Com) Gold Medalist with over 12 years of
as solar energy solutions or gas-powered generators. experience, he specializes in developing risk management
• Promote energy conservation practices through frameworks, conducting internal audits, and ensuring regulatory
compliance for Pakistan's energy sector.
employee awareness and training programs.
ICMA’s Chartered Management Accountant, May-June 2025 27