Junaid Naqi, President of the Korangi Association of Trade and Industry (KATI), has urged the government to immediately reduce electricity tariffs to Rs. 26 per unit to ensure the survival of industries and economic stability in Pakistan. He warned that the soaring electricity rates severely impact industrial production, job creation, and business sustainability, making it increasingly difficult for local industries to remain competitive globally.
Junaid Naqi stressed that the government must take urgent measures to rationalize electricity costs and ensure that the benefits of renegotiated Independent Power Producer (IPP) contracts are directly passed on to consumers. He cautioned that if electricity prices are not lowered immediately, industries will be forced to shut down, unemployment will rise, and the country will face an economic crisis that it cannot afford.
The KATI president strongly rejected the unprecedented 2600% increase in security deposits imposed by electricity distribution companies (DISCOs), calling it an unjustified financial burden on industrial consumers. He pointed out that industrial consumers already have a 99% payment recovery rate, leaving no justification for such an excessive demand. He called for the immediate reversal of this decision.
Junaid Naqi also condemned NEPRA’s arbitrary deduction of Rs. 3 to 4 per unit from the negative fuel adjustment for December and January. He labelled these deductions as illegal and unfair, stating that NEPRA made these reductions without formal determination, depriving Karachi’s industries of their rightful relief. He emphasized that such unauthorized deductions violate transparency and fairness in regulatory practices and must be reversed immediately.
He reiterated KATI’s key demands: an immediate reduction in electricity tariffs to Rs. 26 per unit to support struggling industries, the withdrawal of the 2600% increase in security deposits, the full transfer of negative fuel adjustment benefits to consumers without unauthorized deductions, and the implementation of transparent and fair regulatory measures.
Junaid Naqi urged the government and regulatory authorities to take immediate action to safeguard industries from further economic hardship. He warned that Pakistan’s industrial sector is already under severe pressure, and any delay in reducing electricity costs will irreversibly damage exports, employment, and the overall economy.
“We expect swift and decisive action from the government to address these pressing concerns and prevent further devastation of Pakistan’s industrial sector,” he concluded.
