Karachi, July 25, 2023 – The Korangi Association of Trade and Industry (KATI) has sounded the alarm over the recent electricity tariff hike, warning that it could spell disaster for many industries, potentially leading to closures.
In a statement issued by KATI President Faraz-ur-Rehman, the association expressed serious concerns about the devastating impact of the 34 percent increase in the basic electricity tariff, along with the frequent upward adjustments in rates. The hike has triggered outrage across various sectors of the economy.
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President Faraz-ur-Rehman highlighted the far-reaching consequences of such increases on industrialists, service sectors, and small to medium enterprises, pointing out that their incomes have not kept pace with the escalating electricity costs. The soaring production expenses have made it increasingly difficult for businesses to operate efficiently and compete in the global markets.
Estimating production costs under such unstable electricity prices has become an arduous task, further exacerbating the challenges faced by industries. The fear of losing competitiveness and a potential wave of industrial closures looms large among many industrialists.
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To mitigate the impact of the electricity tariff hike on the economy, Faraz-ur-Rehman urged the government to take immediate action and provide cheaper electricity alternatives. He suggested focusing on renewable energy solutions to alleviate the strain on the nation and the industry.
One of the proposed solutions included offering loans at single-digit interest rates to facilitate the acquisition of solar systems, promoting sustainable and renewable energy sources. Such an approach would not only reduce the burden on the public but also support the industrial sector, ensuring business continuity.
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President KATI stressed the urgency of prioritizing renewable energy projects and decreasing reliance on conventional electricity sources. By offering affordable loans for citizens to install solar systems, the burden on both the public and industries would significantly decrease, fostering a sustainable and affordable energy landscape.
If the government continues to burden the public and industries with soaring electricity prices and neglects renewable energy initiatives, it could result not only in an economic crisis but also political and administrative turmoil, according to KATI Chief.
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In light of these pressing concerns, KATI called on the government to act swiftly, prioritizing measures that support the industrial sector and ensure the welfare of the nation as a whole.
