Karachi, April 7, 2025 – The SITE Association of Industry (SAI) has strongly urged the federal government to eliminate the long-standing disparity in electricity tariffs between Karachi and other cities.
In a statement issued on Monday, SAI President Ahmed Azeem Alvi welcomed Prime Minister Shehbaz Sharif’s announcement of a Rs. 7.59 per unit reduction in electricity tariffs for industrial consumers but emphasized the need for equal treatment across regions.
Alvi called on the Prime Minister to bring electricity tariffs in Karachi at par with the rest of the country. He pointed out that industries in the city are currently paying Rs. 8 to 9 more per unit compared to other regions, a disparity that significantly increases production costs and undermines Karachi’s industrial competitiveness.
The SAI president stressed that equitable electricity pricing would reduce costs for manufacturers, particularly those in the export sector, allowing them to compete more effectively in international markets. He noted that the recent reduction is a much-needed relief, especially for industries that have been struggling due to high energy expenses. However, he insisted that the benefit must extend fully to Karachi’s industrial base.
Alvi further explained that electricity from the Karachi Nuclear Power Plant (KANUP) is currently routed through WAPDA before reaching K-Electric. While K-Electric was offered direct sourcing, concerns over the reliability of a single-source supply have delayed this option. Nevertheless, Alvi maintained that technical solutions are available to mitigate such risks.
He also proposed that electricity generated from Thar coal could be a sustainable alternative for Karachi’s industries. Zones like Gadap and Kathore are already benefiting from cheaper WAPDA electricity, and similar initiatives should be extended citywide.
Highlighting Karachi’s vital role in the national economy, Alvi reminded that the city contributes over 51% to national exports and more than 60% to the treasury. “Revitalizing Karachi’s industries through fair electricity pricing will not only foster growth but also create thousands of jobs,” he said.
Finally, SAI urged the Prime Minister to abolish the PHA surcharge for Karachi, arguing that local consumers are not responsible for the circular debt and deserve fair treatment.