Karachi, January 8, 2026 — Leading business figures in Karachi have strongly urged the federal government to immediately reduce gas prices rather than merely freezing tariffs for the next six months, warning that the move offers no real relief to an already struggling industrial sector.
Chairman Businessmen Group (BMG) Zubair Motiwala and President Karachi Chamber of Commerce and Industry (KCCI) Rehan Hanif expressed serious concern over the government’s decision, stating that the tariff freeze has been presented as a relief measure but fails to address the core issue of excessively high energy costs. In a joint statement, they noted that during ongoing consultations with the government, the business community consistently demanded a significant reduction in gas tariffs to lower the cost of doing business.
They emphasized that gas is a critical input for industry, particularly export-oriented sectors, and recalled that the Prime Minister has repeatedly highlighted the need to reduce energy costs to revive industry and boost exports. Against this backdrop, maintaining gas prices at current inflated levels cannot be considered meaningful relief.
According to BMG and KCCI, gas tariffs in Pakistan remain far above the actual cost, severely undermining industrial competitiveness. High energy prices have led to reduced production, declining exports, partial or complete shutdown of industrial units, and underutilization of capacity. They warned that prolonging the status quo would only deepen industrial distress.
The business leaders stressed the urgent need for cost-based gas pricing. Citing industry data and OGRA figures, they said indigenous gas costs around Rs1,800 per MMBTU, yet industries—especially Captive Power Plants—are charged close to Rs4,000 per MMBTU. Such rates, they argued, are unjustifiable and are accelerating deindustrialization at a time when Pakistan needs growth, jobs, and foreign exchange.
They also highlighted that Small and Medium Enterprises (SMEs) are paying around Rs2,300 per MMBTU for gas used in heating and processes, forcing many smaller units to shut down and triggering job losses.
Additionally, BMG and KCCI raised alarm over an unannounced increase in the RLNG mix in industrial gas supply from 10 percent to 20 percent, as reflected in recent bills. This change, they said, has further increased costs and is counterproductive, given RLNG’s higher price compared to indigenous gas.
On circular debt, the leaders maintained that the government must identify the real causes rather than shifting inefficiencies onto industry. They rejected the notion that freezing tariffs would reduce the cost of doing business, warning that higher RLNG usage would further erode competitiveness.
Concluding, they urged the government to revisit its gas pricing policy, align tariffs with actual costs, reverse the increased RLNG mix, and provide genuine relief to industry to support sustainable economic recovery.