Karachi, January 27, 2024 – The Karachi Chamber of Commerce and Industry (KCCI) has vehemently called on the caretaker government to urgently release the long overdue Rs 28 billion incremental package earmarked for industries in Karachi.
KCCI President Iftikhar Ahmed Sheikh, in a statement issued on Saturday, emphasized the critical need for immediate action to prevent the imminent risk of industrial shutdowns, which could have severe repercussions on the already beleaguered economy and lead to mass unemployment.
President Iftikhar Ahmed Sheikh urged the government to expedite the release of the already allocated Rs 7 billion against the previous incremental consumption package. Additionally, he called for the arrangement of the remaining Rs 21 billion, which has been pending for the incremental consumption of Karachi-based industries. This delay, despite commitments made by the previous government and assurances from Caretaker Minister for Energy Muhammad Ali during his recent visit to KCCI, has raised concerns among the business community in Karachi.
Highlighting the disparity, Sheikh pointed out that funds against the incremental package had been released across the country, except in Karachi. This, he argued, was a glaring injustice to the largest city in the country, which contributes over 68 percent of the national revenue. He urged the government to fulfill its promise and address the concerns of Karachi-based industries by promptly releasing the pending funds.
President KCCI further emphasized the government’s commitment to allowing power tariff at the rate of 9 cents/KWh for industrial consumers in Karachi. Despite repeated assurances from the Energy Minister at various platforms, including mainstream media, a relevant notification in this regard is still pending. The delay in implementing these decisions has added to the anxiety of the business community, already grappling with skyrocketing costs of doing business, primarily driven by exorbitantly high energy tariffs.
The KCCI president warned that the protracted delay in releasing the overdue Rs 28 billion under the previous incremental package was causing considerable anxiety among business owners. The immediate release of funds, he stressed, is crucial to prevent industrial shutdowns that could further exacerbate the economic challenges faced by Karachi-based industries and result in widespread unemployment.
President Iftikhar Ahmed Sheikh also highlighted the distress faced by Karachi-based industries, noting the closure of numerous small and medium-sized enterprises and the precarious situation of large-scale manufacturing units. The economic challenges include unbearable energy tariffs, massive currency depreciation, high borrowing costs, and a colossal increase in input costs, collectively pushing Karachi-based industries to the brink of collapse.
President KCCI urged lawmakers in Islamabad to acknowledge the gravity of the situation and issue immediate directives for the release of pending funds. He emphasized the need for a commitment to fostering an environment of equal opportunity and support for Karachi, which, he lamented, continues to face step-motherly treatment from the federation.
“We hope that the lawmakers in Islamabad would realize the gravity of the situation and immediately issue directives for the release of pending funds at the earliest possible time,” he added.
