• Climate crisis linked to Karachi’s energy problems
• Miftah says privatisation alone is not enough as energy sector requires pro-people regulations

KARACHI: Speakers at a conference stressed the need for urgent reform, transparent tariff structures, improved governance and modernised distribution systems to address the challenges of the country’s energy sector, particularly in Karachi.

They agreed that the management of the KE needed urgent reform, describing its current corporate governance as “flawed and untenable”.

They concluded that collaboration between the government, private sector and citizens is critical to resolving the country’s energy challenges.

The conference — Powering progress: affordable energy for industry & inclusive growth — brought together leading voices from industry, energy utilities, policy institutions and media to chart a path towards affordable, reliable power and inclusive economic growth in Pakistan.

Organised by Naya Daur Media as a platform for constructive dialogue, the day-long event featured two interactive sessions — Urban Power Supply: Access, Affordability & Accountability and Industrial Energy Needs: Unlocking Low-Cost Power for Growth, said a press release issued here.

Speaking on the occasion, former finance minister Miftah Ismail said that power supply was a hyper-regulated area and needed urgent reform.

He emphasised that privatisation alone was not enough and that the energy sector required pro-people regulation and improved governance at both national and local levels.

He was critical of KE and its performance, noting that despite being privatised, “KE has failed to meet the city’s needs”.

However, he pointed out that other energy companies across the country are “even more inefficient”, undermining both economic growth and citizen welfare.

Call for transparent tariff structure

The first session examined Karachi’s power supply challenges, highlighting persistent issues of tariff hikes, customer service failures, and frequent loadshedding.

The participants stressed the need for transparent tariff structures, improved customer relations and modernised distribution systems to address citizen grievances.

Journalist and environment activist Afia Salam urged the mainstream media to spotlight energy poverty and its impact on communities in Karachi suffering long hours of loadshedding.

She questioned why Karachi pays adjustment charges at par with other areas despite facing unique urban challenges and called for a review of how electricity charges are calculated.

Muttahida Qaumi Movement-Pakistan MPA Taha Ahmed Khan noted that KE had effectively lost its monopoly last year following joint efforts by political and civil society stakeholders in response to its “intractable inefficiencies”.

He recommended introducing prepaid meters to prevent fraudulent meter readings, called for public-private partnerships to combat electricity theft through the “kunda” system, and criticised the practice of classifying areas into “high recovery” and “low recovery” zones, arguing it unfairly penalises entire communities.

“Karachi’s residents deserve fair pricing and dependable service. Trust can only be rebuilt through transparency and accountability,” said Aneel Mumtaz, who criticised KE for overcharging consumers while regulatory institutions like the National Electric Power Regulatory Authority (Nepra) and the courts failed to enforce effective oversight. He recalled that former federal secretary Younus Dagha was swiftly removed after pointing out KE’s inefficiencies.

Zeenia Shaukat of The Knowledge Forum linked the climate crisis to Karachi’s energy problems and called for transparency and investment in green energy. “These failures are why Karachi now ranks among the least liveable cities in the world,” she said.

Junaid Naqi of the Korangi Association of Trade and Industry stated: “Energy reform is not just about cost — it’s about ensuring our industries can compete globally without being held back by power shortages or unpredictable tariffs.”

He suggested awareness sessions for traders, industry representatives, and citizen groups to develop coordinated solutions.

Imran Shahid of Jamaat-i-Islami (JI) called for greater accountability of KE, saying “the management of Karachi’s power sector is inefficient and oversight by responsible institutions is missing”.

The speakers noted that circular debt, transmission losses, and reliance on expensive imported fuels continue to erode industrial competitiveness. Solutions discussed included diversifying energy sources, integrating renewables, and incentivizing efficiency improvements.

Raza Rumi, editor of Naya Daur Media and moderator of the conference, said: “This conference marks the beginning of a continuous dialogue. Today’s discussions reaffirmed that affordable and reliable energy is not just an economic priority — it is a social imperative.”

The organisers announced plans to publish a summary report with detailed recommendations and to engage policymakers and stakeholders to advance the outcomes of the conference.

Published in Dawn, July 28th, 2025