KATI demands govt cut industrial electricity rates and standardise FCA charges

KARACHI: President of the Korangi Association of Trade and Industry (KATI) Junaid Naqi has urged the government and Ministry of Energy to take immediate steps to reduce rising production costs for industries. He called for lower industrial electricity rates, standardised fuel cost adjustment (FCA) charges nationwide, and solutions for issues faced by captive power users.

Naqi emphasised that reducing the industrial electricity rate to 9 cents per unit is crucial to keeping Pakistani industries competitive in the global market. He explained that affordable electricity would be instrumental in strengthening the manufacturing sector and safeguarding thousands of jobs. “If electricity rates are reduced to 9 cents per unit, industries could substantially lower production costs, enabling them to better manage rising operational expenses,” he said.KATI is also advocating for uniform FCA charges across Pakistan, particularly for industries in Karachi, which currently face higher FCA costs than other regions. Naqi described this discrepancy as an “unfair burden” that prevents Karachi’s industries from competing on equal terms with those elsewhere in the country. He urged the Ministry of Energy to adopt standardised FCA charges, ensuring fair treatment for industries nationwide.

Naqi also highlighted the ongoing issue of gas supply interruptions to captive power units, warning of the negative impact on industries that depend on this energy source for uninterrupted operations. He called on the government to implement a balanced approach to address these issues, stressing the need to ensure accessible and affordable electricity and gas rates for all industrial sectors.