Industrialists Slam Govt Over Gas Suspension, Power Tariff Hike

Gas-Sale

Karachi: Industrialists and business leaders have strongly criticised the government’s decision to suspend gas supply to industries for two days a week and curtail supply to fertiliser plants, warning that the move could further strain Pakistan’s fragile economy amid rising energy costs.

Business leaders noted that the country is already facing severe economic challenges due to the escalating cost of doing business. The high prices of electricity and gas, they said, have significantly reduced the competitiveness of Pakistan’s industrial sector in international markets.

Businessmen Group (BMG) Chairman Zubair Motiwala and Karachi Chamber of Commerce and Industry (KCCI) President Muhammad Rehan Hanif stressed that the decision comes at a time when Pakistan urgently needs to boost exports and stabilise its external accounts. They warned that suspending gas supply would disrupt industrial operations, reduce production capacity, and potentially lead to delays or cancellations of export orders.

Commenting on the government’s decision to form an 18-member high-level Action Committee to address the energy situation, the two leaders described the initiative as a positive step but emphasised that the committee would remain incomplete without adequate representation from the industrial and export community.

They urged the government to include representatives from KCCI, noting that the business community can provide practical insights, real-world perspectives, and workable recommendations to improve energy management and revive industrial growth.

“If the government is genuinely serious about preserving Pakistan’s export reputation in global markets, it must ensure uninterrupted and affordable energy supply to industries,” they said. “Otherwise, exporters will face serious production delays, forcing international buyers to shift their orders to competing countries.”

The industrial leadership also called on the government to immediately review its decision on suspending gas supply and adopt a more balanced, industry-friendly energy policy to support manufacturing, boost exports, and stabilise the national economy.

Meanwhile, Site Association of Industry President Abdul Rehman Fudda pointed out that the National Electric Power Regulatory Authority (NEPRA) had already approved two tariff increases last year — a rise of 33 paisa per unit for the July-September 2025 quarter and 35 paisa per unit for October-December 2025.

He added that NEPRA has now approved an additional increase of Rs1.6274 per unit for power distribution companies, including K-Electric, under the Fuel Charges Adjustment (FCA) mechanism for January, allowing recovery of nearly Rs14 billion.

The industrial community warned that the latest tariff hike will significantly increase operational costs for consumers in Karachi, particularly industries, adding billions of rupees to production expenses and posing a serious threat to industrial productivity in the city.

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