KARACHI: The city’s industrial sector is on the brink of a major crisis, the Karachi Chamber of Commerce and Industry’s (KCCI) president said on Saturday, highlighting that the government has long delayed the release of Rs28 billion pending on incremental consumption of Karachi-based industries.
In a statement, Iftikhar Ahmed Sheikh elaborated that in addition to immediately releasing the already earmarked Rs7bn against the previous incremental consumption package, the government must also arrange the remaining Rs21bn.
Mr Sheikh criticised the unequal treatment meted out to Karachi despite its significant contribution of over 68pc in revenue to the national exchequer. He pointed out that funds under the same package had been disbursed in other parts of the country, but Karachi has been conspicuously overlooked.
The delay in releasing these funds has caused widespread anxiety within the business community, already struggling with soaring operational costs, primarily driven by high energy tariffs, he said.
The KCCI president emphasised the urgency of releasing these funds to avert the looming threat of industrial shutdowns in Karachi, which would exacerbate the country’s economic troubles and lead to massive job losses.
He also highlighted the lack of follow-through on a decision to set the power tariff for Karachi’s industrial consumers at 9 cents per KWh. Despite repeated confirmations from caretaker Energy Minister Muhammad Ali across various platforms, the official notification is still pending.
Mr Sheikh described the dire situation of both small and medium-sized industries, as well as large-scale manufacturing units in Karachi, which are grappling with a host of challenges, including economic downturn, steep energy costs, currency devaluation, high borrowing rates, and surging input costs.
He expressed his frustration over the persistent neglect of Karachi’s industries, calling for a level playing field and an end to the “step-motherly” treatment from the federal government.
Published in Dawn, January 28th, 2024
