Electricity Relief Sought for Karachi Industries

KARACHI: The Karachi Chamber of Commerce & Industry (KCCI) has called on Prime Minister Muhammad Shehbaz Sharif to expedite the release of a long-awaited Rs23 billion subsidy for incremental electricity consumption. Despite being allocated in previous budgets, the funds have yet to be disbursed, creating financial challenges for Karachi’s industrial sector, which has not received the relief granted elsewhere in the country.

In a letter to the Prime Minister, KCCI President Muhammad Jawed Bilwani acknowledged government efforts to support the business community but stressed concerns over the delayed subsidy, initially meant for the period from July 2021 to October 2023. He emphasized that Karachi’s industries are suffering from ongoing administrative and legal issues.

The total subsidy earmarked for this period is Rs33 billion, with Rs23 billion being undisputed. Allocations were made in fiscal years 2021-22, 2022-23, and 2023-24, but procedural and legal delays, particularly involving K-Electric, have hindered distribution.

Bilwani noted that K-Electric operated without a stay order for nine months but still did not pass the subsidy on to consumers. The lack of enforcement by NEPRA and legal challenges have prolonged the issue, despite a Tribunal dismissing KE’s appeals in July 2024. The case remains stalled due to a stay order from the Islamabad High Court.

The KCCI has urged the government to verify the subsidy figures through the Power Division and NEPRA, ensuring the verified amount is included in the upcoming federal budget. The organization also proposed that the undisputed Rs23 billion be disbursed directly to industrial consumers to avoid further delays.

Bilwani highlighted the importance of resolving this issue, framing it as both a legal obligation and a matter of economic justice. He stressed that providing overdue relief to Karachi’s industries is crucial for economic stability in Pakistan.

He expressed hope that the Prime Minister would act swiftly to address the situation, restoring trust in government policy and supporting Karachi’s industrial sector.