Karachi, October 16, 2025 — The Karachi Chamber of Commerce & Industry (KCCI), along with representatives from all seven industrial town associations and textile exporters’ bodies, has strongly urged Prime Minister Shehbaz Sharif to immediately freeze the controversial gas levy that has triggered widespread outrage among industries.
The business community warned that the retrospective imposition of this levy, charged for four months, has inflated gas bills from millions to tens of millions of rupees, pushing many manufacturers to the brink of closure.
During a joint press conference at KCCI, business leaders appealed to the government, including Energy Ministers Ali Pervez Malik and Awais Leghari, as well as SIFC Coordinator Sarfaraz Ahmed, to intervene urgently. Chairman Businessmen Group (BMG) Zubair Motiwala, addressing via Zoom, said that the newly introduced Rs791 per mmbtu levy on captive power plants is “irrational, unjustifiable, and unbearable.” He stressed that the levy was calculated based on misleading peak-hour rates rather than a 24-hour average, resulting in a false cost differential with grid electricity.
Motiwala recalled that during General Pervez Musharraf’s era, industries were encouraged to set up captive power plants with government assurance of stable gas supply. However, he lamented that current policies, excessive taxes, and multiple levies have rendered such investments financially unviable. “If this retrospective levy remains in force, industries will collapse, exports will plummet, and unemployment will surge,” he cautioned.
Vice Chairman BMG Jawed Bilwani criticized the government for burdening industries with inflated gas bills lacking transparency, noting that even this levy is subjected to GST, further squeezing liquidity. He demanded that the formula behind the levy be made public and all unjust surcharges suspended until a fair review is conducted.
KCCI President Rehan Hanif warned that exporters are already considering relocating operations abroad due to the unsustainable cost of doing business. He stressed that industrial survival directly determines Pakistan’s economic stability and export growth.
Business representatives from SITE, Landhi, and Korangi industrial areas echoed similar sentiments, stating that if the government continues enforcing anti-industry measures such as this levy, it will destroy investor confidence and turn Pakistan into an import-driven economy.
They appealed to the Prime Minister to freeze the levy immediately, hold consultations with industrial stakeholders, and adopt a consistent, transparent gas pricing policy to safeguard the nation’s manufacturing backbone and preserve export competitiveness.