Ministerial Delay on Fuel Cost Adjustment Raises Concerns in Karachi

Karachi: Junaid Naqi, President of the Korangi Association of Trade and Industry (KATI), has praised Prime Minister Shehbaz Sharif’s decision to lower electricity tariffs for industrial consumers, describing it as a pivotal move to bolster Pakistan’s export sectors amidst economic challenges.

However, Naqi has expressed significant concerns over potential actions by the Ministry of Energy (Power Division) to postpone the negative Fuel Cost Adjustment (FCA) for April 2025 for K-Electric consumers. He cautioned that such a delay, which he claims lacks legal and procedural justification, might undermine the Prime Minister’s reform efforts.

Naqi emphasized that the FCA should be applied as per NEPRA’s regulatory framework. He questioned the rationale behind delaying its implementation specifically for Karachi, suggesting it compromises regulatory independence and could lead to administrative overreach.

He noted that Karachi’s residents and industries have historically borne higher FCA charges without delay. Now, as relief is due, he argued that obstructions are being introduced, which he termed unjust and damaging to public trust in government reforms.

Naqi clarified that unless a consistent FCA policy is approved by the federal cabinet and directed to NEPRA, any intervention lacks legal standing. Even with approval, he noted, the policy can only be applied moving forward, not retroactively.

The KATI president called for a transparent and timely execution of regulatory decisions and urged the government to ensure NEPRA’s independent operation. He stressed the need for equal treatment across all regions, including Karachi, and the importance of maintaining the rule of law.