Karachi, May 30, 2025 – The Karachi Chamber of Commerce and Industry (KCCI) has called on the federal government to urgently release the long-delayed subsidy related to incremental electricity consumption, which is critical for the survival and growth of Karachi’s industrial sector.
In a formal appeal to Prime Minister Shehbaz Sharif, KCCI President Muhammad Jawed Bilwani emphasized the need to include a provision for the Rs23 billion subsidy in the upcoming federal budget for FY 2025–26. He highlighted that although the relief for incremental electricity consumption had been allocated in past budgets, it has not been disbursed, leaving Karachi’s industries uniquely burdened. Similar subsidies have already been granted to other parts of the country.
Bilwani expressed serious concerns over the government’s failure to release the funds despite confirmed allocations in FY 2021–22 (Rs22 billion), FY 2022–23 (Rs13 billion), and FY 2023–24 (Rs7 billion). The total subsidy for the period between July 1, 2021, and October 21, 2023, is Rs33 billion, of which Rs23 billion is undisputed. However, legal and administrative delays, especially involving K-Electric, have stalled its release.
In the letter, the KCCI president acknowledged the government’s recent efforts to stabilize the economy but stressed that prolonged delays in settling the incremental electricity consumption subsidy undermine investor confidence and the operational capacity of industries in Karachi. “K-Electric operated without a stay order for nine months and still failed to disburse the subsidy,” he noted, blaming regulatory gaps and ineffective oversight from NEPRA.
He also pointed out that even after K-Electric’s appeals were dismissed by the Tribunal in July 2024, the matter remains unresolved due to a stay order by the Islamabad High Court. As a solution, KCCI urged the government to bypass K-Electric and directly disburse the Rs23 billion to industrial consumers to avoid further procedural setbacks.
“This is not merely a financial issue,” Bilwani asserted. “It is about protecting Karachi’s economic engine. The government must act decisively to ensure justice in electricity consumption subsidies.”
KCCI remains hopeful that Prime Minister Shehbaz Sharif will personally intervene to ensure Karachi’s industries are not left behind and receive their rightful relief in electricity consumption costs.