Industrialists in Karachi Call for Equal Power Tariffs Across Pakistan

Karachi: Ahmed Azeem Alvi, President of the SITE Association of Industry Karachi, has welcomed Prime Minister Shehbaz Sharif’s recent announcement of a reduction in electricity tariffs by Rs. 7.59 per unit for industrial consumers. Nevertheless, Alvi is urging the Prime Minister to take further action by aligning Karachi’s electricity tariffs with those of other cities, addressing a long-standing grievance of the business community. Alvi noted that electricity rates in Karachi are Rs. 8 to 9 higher than in other regions, a disparity that he argues hinders the port city’s economic potential.

In a statement, Alvi emphasized that lower electricity costs for industries would decrease production expenses, particularly aiding export-oriented sectors by boosting their competitiveness on the global stage. This could stimulate exports, a key driver of economic growth, and yield long-term benefits for the industrial sector.

Alvi described the recent tariff reduction as a significant relief, noting that high energy costs have adversely impacted production activities. The new tariffs are expected to benefit both manufacturing and export sectors, contributing to greater economic stability.

He explained that while electricity from KANUP is currently routed through WAPDA to K-Electric, direct sourcing options for K-Electric have been available. However, concerns about potential power disruptions from a single large source may have deterred the utility company. Alvi suggested that solutions to these concerns could be found.

To further support Karachi’s industries, Alvi proposed that electricity could be supplied using Thar coal, which could help sustain existing industrial zones. Industries in Gadap and Kathore are already benefiting from cheaper WAPDA electricity. Providing affordable power to Karachi’s industries could lead to industrial growth and increased employment opportunities.

Alvi pointed out that over 51% of Pakistan’s exports come from Karachi, and the city contributes more than 60% to the national treasury. He argues that improvements in Karachi would have a positive impact on the broader economy.

Additionally, Alvi expressed his support for Prime Minister Sharif’s efforts to address the circular debt issue and requested the abolition of the PHA for Karachi consumers, who, he noted, do not contribute to the circular debt.