ISLAMABAD: The Pakistan Association of Large Steel Producers (PALSP) has raised a poignant concern over the blatant discrimination faced by Karachi-based industries in the implementation of the Government’s Incremental Units Consumption Subsidy.
This subsidy, designed to provide relief to industries during post-COVID economic challenges, has exposed a disheartening disparity in its allocation, casting shadows on the commitment of state authorities towards equitable support.
In a statement issued by the PALSP here on Sunday, the steel sector said that the Incremental Units Consumption Subsidy, which offers a fixed rate of Rs12.96 per unit for energy consumption exceeding the reference period, has been a lifeline for industries across Pakistan.
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However, the situation takes a grim turn when viewed through the lens of Karachi industries. Since July 2021, these industrial units have been ensnared in a web of bureaucratic hurdles and neglectful response from relevant authorities, depriving them of their rightful share in the subsidy package.
In a landscape riddled with economic uncertainty and soaring energy costs, industries across the nation are battling to stay afloat. For Karachi industries, the denial of a subsidy package that was approved and budgeted adds a further layer of adversity to their struggle.
The incremental units subsidy for K-Electric industrial consumers, amounting to Rs 22 billion in 2021-22, Rs 13 billion in 2022-23, and Rs 7 billion in 2023-24 remains largely inaccessible, despite being part of the approved annual government budgets.
Assurances from prominent figures, including the Ex-Chairman of the National Electric Power Regulatory Authority (NEPRA) and the current Secretary of Power, have not translated into tangible relief for Karachi industries. This oversight has left these businesses grappling with uncertainty and financial strain, questioning the state’s commitment to supporting industries in times of need.
Exhausting all available avenues, PALSP, along with other affected industries, has taken legal action. Appeals have been submitted to NEPRA, the Ministry of Energy (Power Division), the Competition Commission of Pakistan, the NEPRA Appellate Tribunal, and the Sindh High Court. Unfortunately, these efforts have encountered a frustrating lack of response and meaningful action, said the release.
The glaring disparity in the implementation of the Incremental Units Consumption Subsidy underscores a concerning narrative. It raises fundamental questions about fairness, justice, and the government’s dedication to nurturing industries nationwide. Such discrepancies erode the trust of businesses and hinder their ability to prosper amid challenging economic circumstances.
The current situation serves as a stark reminder of the uphill battle faced by industries in Karachi and the indifference displayed by relevant authorities.
As businesses strive to navigate the complexities of the economic landscape and escalating energy costs, the absence of the promised relief serves as a disheartening example of bureaucratic inefficiency and a lack of empathy. To realize its economic aspirations, it is imperative for the government to address the grievances of Karachi industries and display an unwavering commitment to fostering an environment of equal opportunities and support, the association added.
Copyright Business Recorder, 2023
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