KATI welcomes fixed power tariff for Karachi industry

KARACHI: The Korangi Association of Trade and Industry (KATI) has welcomed the government’s decision to fix the electricity tariff at Rs38 per unit (inclusive of all taxes) for Karachi’s industrial sector for May 2025, calling it a timely relief for businesses grappling with high production costs.

KATI President Junaid Naqi described the move as essential support for industry and expressed special gratitude to Prime Minister Shehbaz Sharif for maintaining a pro-industry approach and ensuring the availability of affordable energy. He also commended Energy Minister Awais Leghari for his key role in implementing reforms and facilitating the supply of electricity from the national grid to Karachi.

Naqi acknowledged the significant contributions of the Special Investment Facilitation Council (SIFC), the energy taskforce, and the National Electric Power Regulatory Authority (Nepra), whose coordinated efforts enabled the implementation of policies to lower electricity costs for the productive sectors.

He further praised the leadership of K-Electric, CEO Moonis Alvi and his engineering teams, for completing the interconnection with National Transmission and Despatch Company (NTDC), allowing the supply of 1,600 megawatts of lower-cost national grid electricity to Karachi. This development has led to a substantial reduction in fuel cost adjustments, directly benefitting the city’s industrial sector.

However, Naqi voiced concern over delays in the transmission of an additional 400MW by the NTDC and urged the authorities to expedite the completion of this segment to fully realise the benefits of the interconnection.

He also expressed strong support for KE’s proposed 640MW solar power projects, expected to deliver clean energy at just Rs10 per unit. Naqi noted that such initiatives would help lower production costs, reduce dependence on expensive imported fuels, and alleviate the burden of energy subsidies on the national exchequer.

Highlighting another unresolved issue, Naqi pointed out that the incremental power subsidy promised to industries during the Covid-19 period remains unpaid. He called on the federal government to immediately release the overdue funds and urged Nepra to reconcile the pending amounts without further delay.

Reaffirming KATI’s commitment to supporting all stakeholders, Naqi concluded that the association would continue working to secure affordable, reliable, and sustainable energy for Karachi’s industries -- the backbone of Pakistan’s economy.