Industrialists slam govt’s energy policy

Published March 7, 2026 Updated March 7, 2026 07:42am
A file photo of the sun setting over power pylons and street lamps in Pakistan. — Reuters/File
A file photo of the sun setting over power pylons and street lamps in Pakistan. — Reuters/File

KARACHI: Industrialists and businessmen criticised the government’s decision to suspend gas supply to industries for two days a week, along with curtailment to fertiliser plants, claiming it would further strain Pakistan’s fragile economy, especially with a recent power tariff increase.

Pakistan is already confronting major economic difficulties due to the steadily increasing cost of doing business, especially the exorbitant prices of gas and electricity, which have significantly diminished the competitiveness of local industries.

Businessmen Group (BMG) Chairman Zubair Motiwala and Karachi Chamber of Commerce and Industry (KCCI) President Muhammad Rehan Hanif emphasised that at a time when the country desperately needs to enhance exports and stabilise its external accounts, suspending gas supply would severely disrupt industrial operations, reduce production capacity, and ultimately cause delays or cancellations of export shipments.

Referring to the government’s decision to establish a high-level Action Committee comprising 18 members to address the energy situation, they described the initiative as a positive step but stressed that the committee would remain incomplete without proper representation from the industrial/export community.

Gas suspension, power tariff hike to hit exports

While strongly urging the government to include KCCI representatives, they stated that the business community can provide practical insights, real-world perspectives, and effective recommendations for improving the overall energy management framework and revitalising industrial growth.

“If the government is genuinely serious about preserving Pakistan’s export image in the international market, it must immediately ensure an uninterrupted and affordable energy supply to the industrial sector. Otherwise, exporters will face serious delays in production and shipment schedules, forcing international buyers to shift their orders to competing countries,” they warned.

They urged the government to immediately review the decision of suspending gas supply to industries, adopt a balanced and industry-friendly energy policy, and ensure that Pakistan’s manufacturing sector receives the necessary support to revive production, strengthen exports and stabilise the national economy.

Site Association of Industry President Abdul Rehman Fudda pointed out that the National Electric Power Regulatory Authority (Nepra) had already increased tariffs twice last year — by 33 paise per unit for the July-September 2025 quarter, followed by a 35 paise per unit increase for October-December 2025. Now, Nepra has approved an additional hike of Rs1.6274 per unit for distribution companies, including K-Electric, to recover an extra Rs14 billion under the Fuel Charges Adjustment (FCA) mechanism for January.

The industrial community warned that the latest tariff revision will heavily burden K-Electric consumers across the board, adding billions of rupees to operating costs and threatening industrial productivity in the city.

Published in Dawn, March 7th, 2026

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