Karachi’s business leaders have expressed concern over what they describe as unjust and intolerable gas prices that have risen to tens of millions of rupees. A number of industrial and textile associations, along with the Karachi Chamber of Commerce and Industry, have urged the prime minister to halt the new tax on gas bills, citing the possibility that it will force factories to close and harm Pakistan’s export industry.
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“In the past, industries were encouraged to set up captive power plants to address electricity shortages, but the recent increase in gas tariffs and taxes has made them unviable,” said Zubair Motiwala, chairman of the Businessmen Group, at a press conference at the KCCI. According to him, the policy has wasted enormous investments.
The government’s 791 rupees per mmBtu levy on captive power plants was criticized by Motiwala as being unwarranted. He claimed that there isn’t a significant enough cost difference between self-generated power and grid electricity to support the fee.
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Business executives cautioned that Pakistan’s exports are no longer competitive with those of nations like Bangladesh, India, and Vietnam due to the high cost of energy. To prevent industries from collapsing, they urged the government to align energy prices with regional levels.
