Karachi, March 5, 2026: Abdul Rehman Fudda, President of the S.I.T.E. Association of Industry (SAI), has raised alarms over soaring electricity tariffs and a two-day gas supply suspension affecting industries in Karachi. The disruption was reportedly due to missing RLNG cargos from Qatar, according to Sui Southern Gas Company (SSGC).
The industrial body noted that the National Electric Power Regulatory Authority (NEPRA) had already increased electricity rates twice last year—33 paisa per unit for July-September 2025 and 35 paisa per unit for October-December 2025. Now, NEPRA has approved an additional hike of Rs 1.6274 per unit for distribution companies, including K-Electric, under the Fuel Charges Adjustment (FCA) mechanism for January 2026, aimed at recovering an extra Rs 14 billion.
SAI warned that the latest tariff surge will significantly raise operating costs, threatening industrial productivity and competitiveness. Abdul Rehman Fudda stated, “The government envisions competitive utility rates for industries, but recent hikes undermine that vision, offsetting the Rs 4.4 per unit reduction announced by Prime Minister Mian Shahbaz Sharif in late January intended to boost productivity and exports.”
The situation has been worsened by Pakistan’s difficulty in securing RLNG cargos from Qatar amid ongoing geopolitical tensions. Combined with limited offtake from domestic gas fields, industries are facing severe supply-side constraints. SAI has urged SSGC to resume domestic gas allocations immediately to stabilize industrial operations.
Fudda emphasized that the lack of energy security—both internal and external—is straining the industrial sector. He cautioned that if the government does not address these issues urgently, industrial output, which had already shown a decline in February 2026, could drop further.
Key Impacts Highlighted by SAI:
• NEPRA-approved electricity rate hikes increasing industrial costs.
• Gas supply suspensions disrupting industrial operations.
• Risk to productivity and export competitiveness.
• Urgent government intervention required to stabilize energy supply.
The industrial community continues to call for proactive energy management to prevent long-term setbacks in Pakistan’s industrial growth.