Karachi, March 6, 2026 – The Karachi Chamber of Commerce and Industry (KCCI) has raised serious concerns over the government’s decision to suspend gas supply to industries for two days a week, warning that the move could accelerate the decline in Pakistan’s exports and further strain the country’s fragile economy.
In a joint statement, Zubair Motiwala, Chairman of the Businessmen Group (BMG), and Muhammad Rehan Hanif, President of KCCI, criticized the policy, calling it “alarming and counterproductive” at a time when industries are already grappling with rising energy costs and declining competitiveness.
Export Decline Raises Alarm
The business leaders pointed out that Pakistan’s exports have already shown signs of deterioration. According to recent data, exports fell by 8.76 percent in February, dropping to approximately $2.27 billion, reversing the modest recovery recorded earlier.
They also noted that the country’s trade deficit has widened to nearly $25 billion, putting additional pressure on the national economy. KCCI warned that frequent energy disruptions could further damage Pakistan’s export performance by disrupting industrial production and delaying shipments.
Gas Suspension to Hurt Industrial Production
Motiwala and Hanif stressed that suspending gas supply even for two days each week could severely disrupt industrial operations.
They warned that factories may be forced to reduce production capacity or temporarily shut down operations, potentially resulting in financial losses, worker layoffs, and canceled export orders.
“At a time when Pakistan urgently needs to boost exports and stabilize its external account, such policies will only deepen the crisis faced by industries,” they said.
Call for Industry Representation in Energy Committee
The KCCI leadership acknowledged the government’s decision to form an 18-member Action Committee to address energy sector challenges, describing the initiative as a positive step.
However, they urged the government to include representatives from the Karachi Chamber and the export sector in the committee. According to them, the business community can provide practical insights and workable recommendations to improve energy management and industrial productivity.
Rising Energy Costs Hitting Competitiveness
Industrialists also highlighted the growing burden of energy costs on manufacturers. Industries have been compelled to use a mix of indigenous gas and imported RLNG, with the RLNG share increasing from 10 percent to as high as 40 percent, significantly raising energy expenses.
Due to these higher tariffs, many factories have reduced operations or shut down captive power plants. Industry estimates suggest that gas tariffs for captive power plants have nearly tripled in recent months, making energy costs far higher than those in competing regional economies.
Concerns Over Gas Management Policies
The KCCI leadership also questioned the government’s gas management strategy. They noted that discussions had previously taken place about deferring imported RLNG cargo from Qatar due to reduced demand, yet industries now face supply suspensions despite paying higher tariffs.
They further pointed out reports indicating that certain natural gas wells were capped in the past due to surplus RLNG supply, raising concerns about planning inefficiencies within the gas sector.
In addition, the Sui Northern Gas Pipelines Limited (SNGPL) had earlier warned about declining gas consumption and potential operational challenges in the transmission network due to reduced demand and pipeline pressure issues.
KCCI Urges Structural Reforms
The chamber urged the government to focus on structural reforms rather than imposing supply cuts on industries. It recommended tackling long-standing problems such as unaccounted-for gas (UFG), transmission losses, leakages, and gas theft, which cause significant financial losses each year.
“Industries are the backbone of the economy and the primary drivers of exports, employment, and revenue generation,” the business leaders said, emphasizing that uninterrupted gas supply must be ensured according to the sector’s demand.
They warned that delays in production and shipments could force international buyers to shift orders to competing countries if Pakistan fails to maintain reliable industrial energy supplies.
KCCI concluded by urging the federal government to immediately review the gas suspension policy and adopt an industry-friendly energy strategy to support manufacturing, revive exports, and stabilize Pakistan’s economy.