KCCI urges PM to release Rs23bn power subsidy for Karachi industries

KARACHI: President of the Karachi Chamber of Commerce & Industry (KCCI) Muhammad Jawed Bilwani has appealed to Prime Minister Shehbaz Sharif to ensure the immediate release of the long-awaited Rs23 billion electricity bill relief on incremental consumption, by incorporating a dedicated provision in the upcoming federal budget for FY 2025-26.

Despite allocations in previous budgets, the relief has not yet been disbursed, causing severe financial strain exclusively on Karachi’s industrial sector, while similar support has already been extended to the rest of the country.

In a formal letter to the PM, Bilwani acknowledged the government’s efforts to address business challenges and improve the national economic outlook. However, he expressed serious concern over the continued delay in releasing the subsidy for incremental electricity consumption from July 1, 2021 to October 21, 2023, saying that Karachi’s industries have borne the brunt of administrative and legal setbacks.

He noted that the total subsidy amount for the period stands at Rs33 billion, of which Rs23 billion is undisputed and should have been disbursed. Budgetary allocations were made in FY 2021-22 (Rs22 billion), FY 2022-23 (Rs13 billion), and FY 2023-24 (Rs7 billion), but the funds have yet to reach the intended beneficiaries due to procedural and legal delays involving K-Electric.

“KE operated without a stay order for nearly nine months, yet failed to pass on the subsidy to consumers,” said Bilwani, criticising the lack of regulatory enforcement by Nepra and the subsequent legal entanglements that have prolonged the issue.

He added that although KE’s appeals were dismissed by a tribunal in July 2024, the matter remains stalled due to a stay order granted by the Islamabad High Court.The KCCI stressed the need for immediate verification of the subsidy figures by the Power Division and Nepra, and called on the government to ensure that the verified amount is clearly reflected in the upcoming federal budget.

The chamber proposed that the undisputed Rs23 billion be disbursed directly to industrial consumers rather than through KE, to avoid further delays.“This is not just a matter of legal obligation; it is a question of economic justice and national interest,” Bilwani said. “Ensuring that Karachi’s industries receive this long-overdue relief is essential for sustaining industrial operations and maintaining economic stability across Pakistan,” he added.Bilwani expressed hope that the PM would intervene promptly to resolve the matter, restore business confidence, and provide the critical support needed by Karachi’s industrial backbone.