The Korangi Association of Trade and Industry (KATI) has called on the government to immediately release a pending PKR 33 billion electricity subsidy crucial for Karachi’s industrial sector. Addressing an emergency press conference, KATI President Johar Qandhari emphasized the urgent need to address the discrimination faced by Karachi’s industries, which have been deprived of a significant portion of a subsidy initially approved to support them during the COVID-19 pandemic.
Qandhari revealed that the subsidy, termed the COVID Incremental Subsidy, totaled PKR 42 billion over three years: PKR 22 billion for 2021-22, PKR 13 billion for 2022-23, and PKR 7 billion for 2023-24. However, despite this allocation, only PKR 7 to 9 billion has been disbursed to Karachi, leaving a staggering PKR 33 billion pending. In contrast, industries in other regions received their full subsidy, enabling them to offer products at more competitive prices, further disadvantaging Karachi’s industrialists.
Flanked by notable industry leaders, including Senator Abdul Haseeb Khan, KATI Deputy Patron-in-Chief Zubair Chhaya, Senior Vice President Nighat Awan, and Vice President Muslim Mohammadi, Standing Committee Chairman Danish Khan, Rehan Javed, Former President and Chairman Ehteshamuddin and others were also present. Qandhari expressed frustration over the delay, he attributed it to ongoing disputes between the government and K-Electric, which have disproportionately affected Karachi’s industries.
Qandhari criticized the delay in subsidy distribution, attributing it to ongoing disputes between the government and K-Electric. He noted that this delay has forced Karachi’s industrialists to sell their products at a loss, as they are paying more than PKR 50 per unit for electricity, compared to PKR 30-32 per unit for industries in other parts of the country.
In a direct appeal to Federal Minister for Energy Owais Leghari and Minister of State Muhammad Ali, Qandhari demanded an end to the discrimination against Karachi’s industries. He also called for the immediate abolition of the PKR 3.23 per unit Power Holding Limited (PHL) charge and the PKR 1.52 per unit surcharge levied exclusively on Karachi consumers. He pointed out that these charges, linked to the Circular Debt, are not justified, as Karachi’s consumers have no involvement in this debt.
Qandhari also proposed that the government supply an additional 100 mmcfd of gas from the Mari Gas field to K-Electric. This would enable the generation of cheaper electricity, potentially reducing the cost per unit by PKR 13.98. He noted that electricity currently being generated from RLNG for Karachi is the most expensive in the country, costing between PKR 26.93 to PKR 38 per unit, due to the high price of RLNG at PKR 3600 per mmbtu.
Deputy Patron-in-Chief Zubair Chhaya warned that if the subsidy is not released soon, industrialists may be left with no option but to resort to protests, including sit-ins and demonstrations. Senator Abdul Haseeb Khan and Rehan Javed also addressed the event, echoing the urgent need for government intervention to prevent further damage to Karachi’s industrial sector and, by extension, the national economy.
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