Karachi: Abdul Rehman Fudda, President of the S.I.T.E. Association of Industry, has expressed serious concerns over the recent increases in electricity tariffs and the sudden closure of gas supplies to industries. The gas suspension, attributed to the absence of RLNG cargos from Qatar, as reported by the Sui Southern Gas Company, lasted for two consecutive days and has compounded challenges for the industrial sector.
According to S.I.T.E Association of Industry, the National Electric Power Regulatory Authority (NEPRA) had previously raised electricity rates twice in the past year, with a 33 paisa per unit increase for the July-September 2025 quarter, followed by a 35 paisa per unit hike for the October-December 2025 period. NEPRA has now approved an additional hike of Rs 1.6274 per unit for distribution companies, including K-Electric, to recover Rs 14 billion under the Fuel Charges Adjustment mechanism for January 2026.
The industrial community has warned that the latest tariff revision will significantly impact K-Electric consumers, increasing operating costs and threatening productivity across the city's industries. While acknowledging the government's intent to provide utilities at competitive rates, industrial representatives argue that the recent tariff hike negates the benefit of a Rs 4.4 per unit reduction announced by Prime Minister Mian Shahbaz Sharif in January, aimed at boosting productivity and exports.
The situation is further exacerbated by Pakistan's inability to secure RLNG cargos from Qatar amid the current geopolitical climate, leading to a supply bottleneck in the Sui Southern Gas Company network and cuts in gas supply to industries. Industrial representatives have called on SSGC to resume offtake from domestic fields to avoid further disruptions.
Abdul Rehman Fudda has warned that Pakistan's energy security issues, driven by both internal and external factors, are placing a severe strain on the industrial sector. He urged the government to address these challenges urgently, noting that continued disruptions could further depress industrial output, which has already shown a decline as of February 2026, according to media reports.
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