KARACHI: The Korangi Association of Trade and Industry (KATI) has urged the government to immediately release a pending Rs 33 billion electricity subsidy crucial for Karachi’s industrial sector.
Addressing at press conference, KATI President Johar Qandhari emphasised the urgent need to address the discrimination faced by Karachi’s industries, which have been deprived of a significant portion of a subsidy initially approved to support them during the COVID-19 pandemic.
Qandhari revealed that the subsidy, termed the COVID Incremental Subsidy, totaled Rs 42 billion over three years: Rs 22 billion for 2021-22, Rs 13 billion for 2022-23, and Rs 7 billion for 2023-24. However, despite this allocation, only Rs 7 to 9 billion had been disbursed to Karachi, leaving a staggering Rs 33 billion pending. In contrast, industries in other regions received their full subsidy, enabling them to offer products at more competitive prices, further disadvantaging Karachi’s industrialists.
Qandhari expressed frustration over the delay, he attributed it to ongoing disputes between the government and K-Electric, which have disproportionately affected Karachi’s industries.
He criticised the delay in subsidy distribution, attributing it to ongoing disputes between the government and K-Electric. He noted that this delay has forced Karachi’s industrialists to sell their products at a loss, as they are paying more than Rs 50 per unit for electricity, compared to Rs 30-32 per unit for industries in other parts of the country.
In a direct appeal to Federal Minister for Energy Owais Leghari and Minister of State Muhammad Ali, Qandhari demanded an end to the discrimination against Karachi’s industries. He also called for the immediate abolition of the Rs 3.23 per unit Power Holding Limited (PHL) charge and the Rs 1.52 per unit surcharge levied exclusively on Karachi consumers. He pointed out that these charges, linked to the Circular Debt, are not justified, as Karachi’s consumers have no involvement in this debt.
Qandhari also proposed that the government supply an additional 100 mmcfd of gas from the Mari Gas field to K-Electric. This would enable the generation of cheaper electricity, potentially reducing the cost per unit by Rs 13.98. He noted that electricity currently being generated from RLNG for Karachi is the most expensive in the country, costing between Rs 26.93 to Rs 38 per unit, due to the high price of RLNG at Rs 3600 per mmbtu.
Deputy Patron-in-Chief Zubair Chhaya warned that if the subsidy is not released soon, industrialists may be left with no option but to resort to protests, including sit-ins and demonstrations. Senator Abdul Haseeb Khan and Rehan Javed also addressed the event.
Copyright Business Recorder, 2024