Karachi, August 17, 2024 – The Korangi Association of Trade and Industry (KATI) on Saturday strongly criticized the proposal for a further hike in electricity tariffs at a time when businesses are already struggling under the weight of inflated electricity bills.
KATI President Johar Qandhari, expressed grave concerns over the impact of this proposed increase on various consumer segments, including residential, industrial, and commercial users. He emphasized that for the next six months, consumers in Karachi will be forced to purchase electricity at higher rates from K-Electric, exacerbating the financial strain on businesses and households alike.
KATI President highlighted a significant disparity between K-Electric and other distribution companies (DISCOs) across the country. “Except for K-Electric, all other DISCOs have requested a reduction of 31 paisa per unit in electricity prices,” he noted, pointing out that the Central Power Purchasing Agency (CPPA) has already submitted this request to the National Electric Power Regulatory Authority (NEPRA). However, Karachi seems to be facing a different scenario, with the city being subjected to a fuel adjustment increase of 3 to 5 rupees per unit for the next six months.
“This separate treatment for Karachi is unfair and unsustainable,” Qandhari stated. He warned that the proposed hike would severely undermine the operational capacity of industries in Karachi, which are already reeling from high production costs. “In these circumstances, Karachi’s industry will not be able to operate,” he cautioned.
KATI Chief also criticized the stark contrast in electricity tariff trends across the country. “While all DISCOs nationwide are moving towards rate reductions, K-Electric is increasing its rates,” he lamented. The KATI President further pointed out that the Punjab government’s decision to reduce electricity rates by 14 rupees per unit will disproportionately benefit Punjab’s industries, leaving Karachi’s industrial sector at a significant disadvantage.
“The production costs in Karachi will escalate to the point where industries will inevitably shut down,” Qandhari predicted. He voiced concern that the influx of cheaper goods from other provinces would further erode the competitiveness of Karachi’s industries, ultimately leading to their demise. “This is a very dangerous move and will act like slow poison, eventually killing the industry,” he concluded, urging the authorities to reconsider the proposed tariff hike before irreparable damage is done to Karachi’s economy.
