KARACHI: Businessmen have welcomed Prime Minister Shehbaz Sharif’s decision to reduce the power tariff, saying that it will “release financial pressure on consumers struggling with their electricity bills”.

M. Abdul Aleem, Secretary General of the Overseas Investors Chamber of Commerce and Industry (OICCI), said “this is a good move despite rigid IMF conditionalities and limited fiscal space available to the government”.

But, he added, this move alone would not stimulate the large-scale manufacturing (LSM) sector. More policy decisions are needed to kickstart business activities.

“Nevertheless we compliment the PM and his team for the decision,” Abdul Aleem said.

Ehsan Malik, the CEO of Pakistan Business Council (PBC), said “any reduction in power rates is welcome, especially since it comes after the steep tariffs on imports announced by US President Donald Trump”.

But, Mr Malik added, the power rates were still higher than neighbouring countries.

Zubair Motiwala, Chairman of the Businessmen Group (BMG), and Jawed Bilwani, President of the Karachi Chamber of Commerce and Industry (KCCI), termed the prime minister’s initiative a “historic intervention” and a bold step towards providing much-needed relief to millions of households and thousands of businesses.

They noted that this tariff reduction would not only ease the financial burden on consumers, but also revitalise the industrial sector, ultimately contributing to a more competitive business environment in the country.

Zubair Motiwala highlighted the particular significance of this tariff reduction for Karachi’s industrial sector, which has long been weighed down by soaring electricity prices.

Jawed Bilwani said the government should continue working closely with the business community to monitor energy prices.

He expressed hopes that this initiative would be the first in a series of reforms aimed at strengthening the nation’s industrial base and stimulating economic activities.

“The leadership of BMG and KCCI looks forward to continued dialogue with the government to ensure that such pro-business and pro-growth measures are sustained and expanded to advance economic prosperity.”

Junaid Naqi, who heads the Korangi Association of Trade and Industry (KATI), called the cut in power tariff a positive step for industrial growth. “The decision will help enhance Pakistan’s competitiveness in the global market.”

Mr Naqi urged the government to ensure long-term stability in electricity rates to facilitate strategic industrial planning and restore investor confidence.

More cuts feasible

Hamid A. Zahur, Chairman of the Pakistan Tanners Association (PTA), said there was still room to further reduce the electricity tariff and gas prices in order to get as close as possible to the regional average of nine cents per KWh, or Rs 25 per unit, for export-based industries.

Mian Zahid Hussain, President of the All Karachi Industrial Alliance, said low power tariff would reduce the cost of production, especially for textile mills and other industrial units, making local products competitive in the international market.

Published in Dawn, April 4th, 2025