KARACHI: The Karachi Chamber of Commerce & Industry (KCCI) has strongly urged Prime Minister Shehbaz Sharif to ensure the immediate release of Rs23 billion in pending electricity subsidies for Karachi’s industrial sector by allocating the amount in the upcoming FY 2025-26 federal budget. The subsidy pertains to incremental power consumption from July 1, 2021, to October 21, 2023.
In a formal letter to the prime minister, KCCI President Muhammad Jawed Bilwani acknowledged recent government efforts to stabilize the economy but stressed that the prolonged delay in disbursing the subsidy has placed an “unfair and disproportionate” financial burden on Karachi’s industrial units. He noted that industries in other regions of Pakistan have already received similar relief, making the delay even more concerning.
According to KCCI, the total subsidy due for the period stands at Rs33 billion, out of which Rs23 billion is undisputed and ready for immediate disbursement. Despite prior budget allocations—Rs22 billion in FY22, Rs13 billion in FY23, and Rs7 billion in FY24—the funds have not reached their intended recipients due to legal and procedural hurdles involving K-Electric.
Bilwani criticized the National Electric Power Regulatory Authority (Nepra) for failing to enforce the subsidy transfer, stating that K-Electric continued to operate without a stay order for nine months yet still withheld the funds. A tribunal dismissed K-Electric’s appeals in July 2024, but a later stay by the Islamabad High Court has kept the matter in legal limbo.
KCCI has proposed that the government bypass K-Electric and directly disburse the Rs23 billion to industrial consumers to avoid further delays. Bilwani emphasized that fulfilling this commitment is both a legal responsibility and an economic necessity, essential for preserving Karachi’s industrial output and investor confidence. He called on the prime minister to take swift action in the national interest.