KARACHI, August 25, 2023 – The industrial heart of Karachi is bracing for turmoil as local industries, particularly in the North Karachi Industrial Area, voice their strong opposition to a recent significant hike in electricity tariffs.
The protest comes from an area that boasts the highest number of Small and Medium Enterprises (SMEs) in Sindh and is the second-largest industrial hub in the province, following Sialkot.
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Industrialists in North Karachi have vigorously protested against the recent surge in electricity rates and are demanding an immediate reversal of this tariff increase. They have issued a stern warning: if their demand is not met, they will escalate their protests, shut down their industries, and symbolically surrender the keys to the government.
Faisal Moiz Khan, President of the North Karachi Association of Trade & Industry (NKATI), has appealed to various high-ranking officials, including Chief of Army Staff General Syed Asim Munir, Caretaker Prime Minister Anwaar ul Haq Kakar, Minister for Energy, Power & Petroleum Muhammad Ali, and Caretaker Sindh Chief Minister Sindh Justice (R) Maqbool Baqar, to intervene and play a pivotal role in reversing the recent power tariff hike. Khan emphasized that this action is vital to save industries, especially SMEs, from potential destruction.
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In his appeal, Khan underlined the grave consequences of a shutdown, asserting that it would not only have a profoundly negative impact on exports but also result in an overwhelming wave of unemployment that would be extremely challenging to control.
He pointed out that SMEs play a crucial role in the economies of developed nations and expressed his concern over their neglect in Pakistan. Khan lamented that high production costs and the burden of expensive electricity and gas have already constrained production activities, making it increasingly difficult for industries to operate. This situation has led to the closure of approximately 35 percent of SMEs, leaving thousands of people jobless.
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Khan urged the caretaker government to shift its focus from anti-business and anti-industry policies to measures that facilitate business operations and promote job creation. He called for a specific policy tailored to SMEs, which includes a special electricity tariff with subsidies. Such policies, Khan argued, would align Pakistan with the developmental trajectories of developed countries.
He expressed deep concern that without immediate measures to steer the country away from severe economic crises and protect SMEs from impending destruction, Pakistan could find itself trapped in a whirlpool of economic challenges that may become insurmountable.
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The standoff between industry leaders and the government over electricity tariffs in Karachi underscores the pressing need for dialogue and policy adjustments to safeguard both industries and employment opportunities in the region.
