Karachi, December 13, 2024 – President of Markazi Tanzeem-e-Tajran Pakistan, Muhammad Kashif Chaudhry, strongly criticized K-Electric (KE) for its monopolistic practices and inadequate service, urging the Karachi Chamber of Commerce and Industry (KCCI) and all trade associations to launch a concerted initiative aimed at addressing the challenges faced by Karachi’s citizens.
“K-Electric should either be nationalized by immediately terminating its agreement, or critical reforms must be introduced within the utility provider. KE’s monopoly is the root cause of Karachi’s energy woes, and there is a dire need for more players in the power generation and distribution sectors to alleviate the suffering of Karachiites,” Chaudhry stated during a meeting with KCCI.
The meeting, attended by KCCI President Muhammad Jawed Bilwani, Senior Vice President Zia ul Arfeen, Vice President Faisal Khalil Ahmed, and other prominent representatives, focused on KE’s inefficiencies and the broader challenges plaguing Karachi’s business community.
Chaudhry assured full support from Markazi Tanzeem-e-Tajran for any KCCI-led initiatives against KE, including sit-ins or nationwide demonstrations. He highlighted that inflation, unemployment, poverty, lawlessness, and terrorism are intricately linked to the smooth functioning of trade and industry, which require consistent and affordable utilities. “Industries cannot operate efficiently unless gas and electricity are supplied reliably at reasonable rates,” he added.
He also pointed to the business community’s prior efforts in forcing the government to revisit unfair agreements with Independent Power Producers (IPPs). Stressing the importance of unity, Chaudhry emphasized the need to reduce electricity tariffs for commercial and industrial users by Rs26 to Rs35 per unit, which could significantly boost trade and industrial progress.
Chaudhry condemned the imposition of municipal taxes through electricity bills, calling it an unfair burden unique to Karachi. “Such practices only add to the hardships of Karachiites, who are already grappling with exorbitant electricity rates. The collective voice of Karachi’s trade associations is essential to end these injustices,” he said.
Highlighting Karachi’s pivotal role in Pakistan’s economy, he called for urgent infrastructure improvements. “Karachi contributes massively to the national exchequer and deserves better treatment. The 44 different taxes imposed on businesses need to be streamlined, with sales tax reduced to a single digit to curb evasion and inflation,” he explained.
In response, KCCI President Jawed Bilwani reassured that the chamber has already raised these concerns through comprehensive ‘Charters of Demands’ submitted to the Prime Minister, Chief of Army Staff, and Sindh’s Chief Minister. These demands address issues like law and order, public transport, and utilities such as electricity, gas, and water. “Survival has become increasingly challenging due to high electricity tariffs, excessive taxes, and deteriorating infrastructure,” Bilwani noted, describing Karachi’s electricity rates as discriminatory and punitive despite the city’s substantial contribution to national revenue and exports.
Bilwani also highlighted the indispensable role of small traders in Pakistan’s economic development. “Small traders not only provide employment but also evolve into major contributors to industrial growth and exports. They deserve better support and recognition,” he remarked.
Chairman of KCCI’s Special Committee for Small Traders, Majeed Memon, urged unity among Karachi’s trade associations under KCCI’s leadership to address the challenges effectively. “A collective voice is far more impactful than individual efforts,” he said, encouraging collaboration for better results.
President of Karachi Sindh Tajir Ittehad, Sheikh Habib, pledged full support from traders, particularly SMEs struggling with unreliable electricity, water, and gas supplies. “A thriving SME sector is crucial for Karachi’s and Pakistan’s economic success,” he concluded.