No progress has been made so far on the issue of water tariff despite the assurance of Sindh Governor Dr Ishrat-ul-Ebad to business and industrial community that Karachi Water and Sewerage Board (KWSB) will take back its recent decision of 82 percent increase in water tariff.
The KWSB decided to increase water tariff by 82 percent on 1st August 2011 to meet its expenses without realising the impact of the 82 percent increase in water tariff in one go on the general public and the bulk consumers especially the industries. The increase in existing rates of Rs 119 per thousand gallons to Rs 215 per thousand gallons was allowed from October 2011.
The industrialists have totally rejected the exorbitant increase in water tariff, saying that the hike is totally unjustified and will increase the cost of production and make the local products uncompetitive in international market. They said that the assertion of KW&SW MD that the borad has not increased the water tarioff in the last nine year was baseless. Upto the end of 2007 the water tariff for industrial consumers was Rs 73 per thousand gallons.
In July 2008 the water tariff was increased to Rs 80 per thousand gallons and in June 2009 to Rs 100 per thousand gallons, by March 2010 to Rs 109 per thousand gallons and by September 2010 to Rs 119 per thousand gallons. "It is evident from the above mentioned facts that the water tariff was increased by 63 percent in last four years," industrialists argued.
Chairman, Site Association of Industry (SAI), Mohammad Irfan Moton said at present the KWSB was supplying 3 MGD against the sanctioned amount of 8 MGD which is inadequate for 4000 industries housed in SITE area. He pointed out that during a meeting Governor Sindh had assured that issue of water tariff would be resolved soon but nothing has been done in this regard. He urged the Sindh Governor and Chief Minister to intervene and direct KWSB to withdraw the increase in water tariff.