KARACHI: The President of the Korangi Association of Trade and Industry (KATI), Junaid Naqi has urged the government and the Ministry of Energy to take swift actions to alleviate rising production costs faced by industries, reductions in industrial electricity rates, uniform fuel cost adjustment (FCA) charges across the country, and resolutions to captive power challenges.

Naqi emphasized that lowering the industrial electricity rate to 9 cents per unit is essential to help Pakistani industries remain competitive in the global market. He noted that affordable electricity would play a pivotal role in boosting the manufacturing sector and preserving thousands of jobs.

“If electricity rates are brought down to 9 cents per unit, industries would see a significant decrease in production costs, allowing them to better manage escalating operational expenses,” he explained.

In addition, KATI is pressing for uniform FCA charges nationwide, particularly for industries in Karachi, which currently bear a higher FCA cost compared to other regions.

Naqi described this disparity as an “unfair burden” that hinders Karachi's industries from competing on an equal footing with those in other parts of the country.

He urged the Ministry of Energy to implement standardized FCA charges to ensure equitable treatment for all industries across Pakistan.

Furthermore, Naqi addressed the ongoing issue of gas supply disruptions to captive power units, warning that this could negatively impact industries that rely on this energy source for continuous operations.

He urged the government to adopt a balanced strategy to resolve these challenges, stressing the importance of ensuring accessible and affordable electricity and gas rates for all industrial sectors.

Copyright Business Recorder, 2024