The Karachi Chamber of Commerce and Industry (KCCI) and industrialists have appealed to the government to release Rs7 billion and decide about the remaining Rs21 billion pending against the incremental consumption of electricity.
Moreover, they pleaded for the immediate issuance of a notification for the reduced power tariff of 9 cents per kilowatt-hour (kWh) to industrial consumers.
Highlighting the miseries-cum-grievances being faced by Karachi-based industries, they told The Express Tribune that a number of small and medium-sized enterprises (SMEs) have closed down their production, while large-scale manufacturing units are going through testing times and are on the verge of collapse.
The industrialists are facing crippling economic challenges following unbearable energy tariffs, massive currency depreciation, high borrowing costs and a colossal hike in input costs, which are rapidly plunging Karachi-based industries into a disastrous situation.
Keeping in view the matchless contribution being made by the port city to the economic development of the entire country, they urged the policy-cum-decision makers to address the grave concerns of industries and fulfil the commitment to foster an environment of equal opportunity and support.
They hoped that the lawmakers in Islamabad would realise the plight of industries and quickly issue directives for releasing pending funds.
KCCI President Iftikhar Ahmed Sheikh pointed out in a statement on Saturday that the funds against the incremental package have been released across Pakistan except Karachi, which is sheer injustice to the largest city of the country that contributes more than 68% revenue to the national exchequer.
Read KCCI decries 191% surge in gas tariffs
He said that in addition to releasing the already earmarked Rs7 billion against the previous incremental consumption package, the government must also arrange the remaining Rs21 billion as a total of Rs28 billion was pending against the incremental consumption of Karachi-based industries despite the commitments made by the previous government and the assurance given by caretaker Minister of Energy Muhammad Ali during his last visit to the KCCI.
Sheikh urged the government to implement its decision to allow power tariff of 9 cents/kWh to the industrial consumers of Karachi, which has been confirmed time and again by the energy minister at various platforms but the relevant notification is still awaited.
The delay in the release of Rs28 billion under the incremental package has triggered a lot of anxiety amongst the business community, who is already agonised due to the skyrocketing cost of doing business.
“Releasing funds immediately is now crucial to prevent the risk of industrial shutdowns, which will have a deep impact on the already ailing economy, besides triggering massive unemployment,” he added.
Endorsing the KCCI’s views, SITE Superhighway Association of Industry (SSHAI) President Shaheen Ilyas Sarwana said all of the three demands are fair and they must be met instantaneously.
“Only Karachi industries are deprived of this relief while the rest of the country’s industries have already been provided the relief,” he said.
Sarwana said the government would take time to release Rs7 billion and another Rs21 billion to be decided against the incremental consumption.
He added that the government may call for the IMF’s nod before issuing the notification for power tariff reduction. Karachi, despite being a business hub of the country, is facing a “step-motherly attitude”.
“The incremental package totaled Rs29 billion until Oct 2023, we are going to forget K-Electric’s 40%, but we should get 60% of Rs29 billion. It’s a budgeted subsidy and already approved, but because of stay order, we did not get it,” Korangi Association of Trade and Industry’s Nepra and Ogra Standing Committee Chairman Rehan Jawed said.
Published in The Express Tribune, January 28th, 2024.
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