Steel Sector Suffers Rs150 Billion Loss in Karachi Due to Lack of Electricity Subsidy

ISLAMABAD: The steel industry in Karachi has reportedly suffered a loss of **Rs150 billion** due to the non-availability of electricity subsidies, putting the sector under severe financial pressure.

The reduction in steel production and stalled investments have raised concerns over potential job losses. In a letter to the Finance Minister, the **Pakistan Association of Large Steel Producers (PALSP)** warned that if the subsidy issue is not resolved, it could lead to serious economic consequences.

PALSP highlighted that Pakistan’s steel industry, one of the largest electricity-consuming manufacturing sectors in the country, has been severely impacted as the government did not release additional electricity subsidies for industries based in Karachi.

Officials clarified, however, that the delay was never due to a lack of funds. PALSP requested urgent intervention in a letter sent to the Finance Minister on **February 9, 2026**, urging a resolution to the matter to prevent further financial strain on the industry.