Karachi-based industrialists have sought the intervention of Chairman of the Senate Standing Committee on Finance Saleem Mandviwala to expedite the release of an incremental subsidy package.
In a letter to Mandviwala, the Pakistan Hosiery Manufacturers Association (PHMA) highlighted the financial plight of the city’s industries, citing losses of PKR 150 billion ($532 million) due to the lack of support.
The PHMA stated that Karachi’s industries are struggling to compete with businesses in other parts of the country, with the steel sector hit particularly hard.
The group called the lack of support discriminatory, especially given the critical challenges faced by the industrial sector.
The appeal comes amid ongoing grievances related to last year’s power relief scheme introduced by the Power Division. The initiative aimed to promote electricity consumption during the low-demand winter season by offering reduced rates of PKR 25 per unit for incremental usage over six months.
While the business community welcomed the plan, PHMA Chairman Jawed Bilwani raised concerns over K-Electric’s failure to pass on benefits from previous relief measures announced by the National Electric Power Regulatory Authority (NEPRA).
In its letter, the PHMA reported widespread industrial shutdowns and a collapse of the steel sector. The association pointed out that while only 17% of the disputed subsidies involve K-Electric’s stake, the remaining 83% should be settled by the government, regardless of the litigation outcome.
The PHMA argued that delays have stemmed from misconceptions within the Ministry of Energy, which reportedly believes winning the litigation would absolve the government from paying anything.
The group stressed that this assumption contradicts NEPRA’s directives, as 83% of the subsidies are unrelated to K-Electric and must be resolved through government funds and fuel cost adjustments.
The letter further noted that past budgets allocated subsidies, but litigation and inadequate responses from the Ministry of Energy and NEPRA have resulted in even undisputed amounts being withheld.
To expedite resolution, K-Electric and its consumers have proposed submitting a statement to the Islamabad High Court, urging the government to release the undisputed funds.
The PHMA called on the government to clearly differentiate between disputed and undisputed amounts, submit its consent to the Islamabad High Court, and instruct NEPRA and the Ministry of Finance to release the pending subsidies without delay.
