Junaid Naqi, President of the Korangi Association of Trade and Industry (KATI), has issued an urgent appeal to the government to reduce electricity tariffs to Rs26 per unit to safeguard the survival of industries and stabilize the national economy.
Naqi highlighted that the current high electricity rates are crippling industrial production, reducing employment opportunities, and threatening business sustainability. He emphasized that Pakistan’s industries risk losing their edge in global markets without competitive electricity prices.
Naqi called for immediate governmental action to adjust electricity costs to more realistic levels. He also stressed the importance of directly passing on the benefits from renegotiated agreements with Independent Power Producers (IPPs) to consumers. He cautioned that failing to reduce electricity tariffs promptly could lead to widespread industrial closures, a rise in unemployment, and a deep economic crisis, which Pakistan cannot afford at this juncture.
KARACHI: The Sindh government, along with various business organisations in Karachi, including the Karachi Chamber of Commerce, the Korangi Association of Trade and Industry, and the North Karachi Association of Trade and Industry,https://t.co/NHddFDsYA8
— Molai Fahad Lashari (@MFahadLashari) February 26, 2025Additionally, Naqi strongly opposed the 2600% increase in security deposits mandated by power distribution companies (DISCOs), labelling it an unjust financial imposition on industrial consumers who already exhibit high compliance with bill payments. He argued that such a drastic increase is unjustifiable given the current compliance rate of 99%.
Further criticism targeted the National Electric Power Regulatory Authority (NEPRA) for reducing fuel adjustment charges by only Rs3 to Rs4 per unit in December and January. He described these cuts as insufficient, unlawful, and unfair, accusing NEPRA of withholding rightful economic relief from Karachi’s industries without a formal decision, thus breaching transparency and fair regulatory practices. Naqi demanded an immediate reversal of these deductions to ensure that Karachi’s industries receive the relief they are due.
Read: Power Tariff to Drop by Rs 4.95 per Unit in Karachi
Reiterating his stance, Naqi called for reducing electricity tariffs to Rs26 per unit, reversing the security deposit increase, and fully transferring the benefits from negative fuel adjustments to the consumers.
Naqi urged the government and regulatory authorities to implement urgent reforms to protect the industrial sector. He warned that without reduced electricity tariffs, Pakistan could suffer irreparable damage to its exports, employment, and overall economic stability. He hoped the government would take swift and decisive action to prevent further detriment to the industrial sector.
