KARACHI: President of SITE Association of Industry Karachi, welcoming Prime Minister Shehbaz Sharif’s announcement of reduction in electricity tariffs by Rs. 7.59 per unit for industrial consumers urged Prime Minister to deliver another piece of good news by equalising Karachi’s electricity tariffs with those of other cities, thus fulfilling long-standing demand of business community.

  Ahmed Azeem Alvi President of SITE Association of Industry in a statement, said that cheaper electricity for industries would lower production costs, particularly benefiting export-oriented industries by enhancing their competitiveness in global markets.  This, in turn, would promote exports-driver of economic growth - and have long-term positive impacts on the industrial sector.

He described the recent reduction in electricity tariffs as a significant relief, emphasizing that high energy costs had severely affected production activities. The new tariff cuts will benefit both the manufacturing and export sectors, contributing to economic stability. “Currently, electricity from KANUP is first supplied to WAPDA and then to K-Electric. Although K-Electric was offered the option to source electricity directly, it may have hesitated due to concerns that a disruption in power supply from a single large source, for any technical reason, could lead to a citywide shutdown. While such concerns are valid to some extent from a precautionary standpoint, solutions can certainly be found.” 

He suggested to the Prime Minister that electricity could also be supplied to Karachi’s business community using Thar coal, which would help sustain the operations of existing industrial zones. Industries located in Gadap and Kathore are already benefiting from cheaper WAPDA electricity. If Karachi’s industries are provided with affordable electricity, it will lead to industrial growth and the creation of extensive employment opportunities. He also highlighted that over 51% of the country’s exports originate from Karachi, and the city contributes over 60% to the national treasury.  Therefore, any improvements in Karachi would have a highly positive impact on the overall economy.

He expressed good wishes for Prime Minister Shehbaz Sharif’s commitment to tackling the circular debt and requested that the PHA be abolished for Karachi consumers, as they do not contribute to the circular debt.