Karachi, April 3, 2025 – The Korangi Association of Trade and Industry (KATI) has strongly welcomed the government’s decision to implement a major reduction in electricity tariffs.
KATI President Junaid Naqi praised Prime Minister Shehbaz Sharif for taking this bold step, terming it a crucial move to support industrial growth and reduce operational costs for businesses.
Naqi highlighted that the revised electricity rates will provide much-needed relief to industrial consumers, with a reduction of Rs. 7.59 per unit—bringing the tariff down from Rs. 58.50 per unit in June 2024 to Rs. 40.60 per unit. Similarly, domestic consumers will benefit from a Rs. 7.41 per unit cut, lowering the rate from Rs. 48.70 per unit to Rs. 34.37 per unit. These changes will alleviate financial burdens and enhance Pakistan’s industrial competitiveness on the global stage.
KATI emphasized that high electricity costs have long been a significant challenge for industries, leading to reduced production and limited export potential. Naqi noted that this tariff reduction will reinvigorate the industrial sector, enabling businesses to expand operations, improve profitability, and strengthen their position in international markets. “Without competitive electricity prices, our industrial sector struggled to compete regionally. This step will help restore our competitive edge,” he stated.
Additionally, Naqi acknowledged the persistent efforts of S.M. Tanveer, patron-in-chief of KATI and the United Business Group (UBG), in advocating against rising electricity costs and addressing concerns related to independent power producer (IPP) contracts. He credited Tanveer’s advocacy for contributing to this much-needed relief in electricity tariffs, which will benefit businesses nationwide.
While applauding the current tariff reduction, KATI urged the government to ensure long-term stability in electricity rates. Sustainable energy policies and consistent pricing mechanisms are essential for strategic industrial planning and restoring investor confidence. “This is a great step, but the government must work towards securing stable and affordable electricity rates in the long run,” Naqi added.
Expressing optimism, the KATI leadership called for continued government support to industries, which would play a pivotal role in strengthening the national economy and boosting exports. As Pakistan navigates economic challenges, ensuring affordable electricity will be critical to fostering industrial growth and maintaining economic stability.