Higher Power Tariffs Could Force Industries to Shut Down: Karachi Chamber
KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) has expressed serious concern over a possible increase in electricity tariffs, warning that the additional financial burden could force industrial units to shut down.
The KCCI has rejected the proposed Fuel Charges Adjustment (FCA) of Rs2.5182 per unit for July 2026. KCCI President Rehan Hanif said that if an additional quarterly tariff adjustment of around Rs1.34 per unit is also imposed, industries would face significantly higher costs.
According to him, if both adjustments are included in electricity bills for September, consumers could face an additional burden of around Rs3.86 per unit before taxes. If the existing relief is withdrawn, the overall additional impact could exceed Rs5 per unit.
Rehan Hanif said expensive electricity had become a major obstacle to industrial recovery, with small and medium-sized enterprises likely to be among the hardest hit.
He warned that rising operating costs would not only affect factories but could also disrupt the broader industrial supply chain, including employment, production and exports.
The KCCI president said Pakistan could not achieve export-oriented economic growth with expensive and unpredictable electricity prices. He urged the National Electric Power Regulatory Authority (NEPRA) to reject the proposed July FCA at its hearing on August 27 or substantially reduce it.
Hanif also called on Prime Minister Shehbaz Sharif to convene an urgent high-level meeting to address industrial electricity tariffs and protect the country’s exports.
He warned that continued increases in electricity prices were already raising production costs and that any further financial burden could create additional difficulties for industries, with potential repercussions for jobs, industrial output and exports.
