Rs15bn investment will fund grid upgrades, feeder bifurcation and network improvements to provide more reliable electricity to Karachi’s industrial sector.
KARACHI: K-Electric Board Chairman Shaheryar Chishti has announced that the power utility will invest Rs15 billion to strengthen its electricity infrastructure and improve the reliability of power supply to Karachi’s industrial sector.
Speaking during a visit to the Korangi Association of Trade and Industry (KATI), Chishti said the investment would cover the installation of new cables and wires, grid upgrades, feeder bifurcation and other infrastructure improvements.
He described industry as the backbone of Karachi’s economy and a major source of employment, stressing that K-Electric remained focused on improving the quality of electricity generation, transmission and distribution.
Chishti said K-Electric was engaging with industrial associations, including KATI, SITE and Bin Qasim, to address their concerns and improve coordination with industrial consumers.
The company’s network currently comprises more than 2,100 feeders, of which over 70% are exempt from load shedding, according to Chishti. He added that industrial consumers had faced no load shedding since 2013.
Industry seeks relief from high electricity costs
KATI President Muhammad Ikram Rajput, however, highlighted the financial pressure faced by industrial consumers because of high electricity and energy costs.
He said rising production costs were undermining the competitiveness of Pakistani products in both regional and international markets.
Rajput urged the government to review industrial electricity tariffs and reconsider additional charges, including surcharges and fuel-related costs. He also raised concerns over substantial capacity payments for unused electricity.
The KATI president called for structural reforms in the energy sector and greater consultation among the government, power companies and industrialists to ensure competitive electricity rates, reliable power supply and lower production costs.
While welcoming K-Electric’s Rs15 billion infrastructure investment, Rajput stressed that the benefits should translate into tangible improvements for industrial consumers.
He said reliable and competitively priced electricity was essential for sustaining industrial activity, reducing production costs and improving the competitiveness of Karachi’s manufacturing sector.