KATI president slams price hikes

KARACHI: President of the Korangi Association of Trade and Industry (KATI) Johar Qandhari has strongly criticized the recent government decisions to raise petrol and electricity prices.

In a statement released on Thursday, Qandhari condemned both the Oil and Gas Regulatory Authority’s (OGRA) decision to increase petrol prices by Rs 9.99 per litre and the National Electric Power Regulatory Authority’s (Nepra) 170 per cent hike in electricity tariffs. He warned of severe economic consequences if these measures are not reversed.

“These price hikes have already driven over 100 industrial units to close their doors,” stated Qandhari. “This has resulted in a surge in unemployment and inflation, both detrimental factors for our economic stability.”

He further highlighted a concerning drop in exports, falling from $19 billion to $16 billion, which he directly attributed to the increased production costs.Qandhari expressed deep concern that continued electricity price rises will further cripple the export sector and plunge the economy deeper into crisis. “The escalating petroleum prices will inevitably fuel inflation, worsening public living conditions and further destabilizing the economy,” he warned.

He pointed out the disconnect between the prime minister’s promise of relief for industrial electricity rates and the recent actions, effectively negating any potential benefit. Qandhari emphasized the difficulty of achieving economic growth targets under these circumstances. Decreased exports, lower incomes, and reduced revenue collection are the predicted outcomes.

In an urgent appeal to the prime minister and the federal minister of energy, Qandhari demanded an immediate reduction in electricity prices for industries. He stressed that high production costs render Pakistani products uncompetitive in the global market compared to neighbouring countries like Bangladesh, Vietnam, and India, who enjoy lower energy prices.