Abdul Rehman Fudda, President of the SITE Association of Industry, today issued a stark warning that the city’s industrial sector is facing a severe crisis following a significant new electricity tariff increase and an unexpected two-day suspension of gas supply, threatening to cripple production and escalate operational costs.
The National Electric Power Regulatory Authority (NEPRA) has sanctioned a substantial price increase of Rs 1.6274 per unit for distribution companies, including K-Electric. This latest revision, intended to recover Rs 14 billion under the Fuel Charges Adjustment (FCA) for January 2026, follows two previous rate increases in the latter half of 2025.
Industrial leaders cautioned that this new tariff will impose a heavy financial burden on all K-Electric consumers, adding billions of rupees to their operational expenditures. They noted that the increase largely nullifies the positive effect of a Rs 4.4 per unit reduction announced by Prime Minister Mian Shahbaz Sharif in late January, which was aimed at enhancing productivity and exports.
The industrial community pointed out a contradiction between the government”s stated vision of providing utilities at competitive rates and the practical reality on the ground, which they believe jeopardises this objective.
Compounding the energy cost challenge is an abrupt halt in gas supply. Sui Southern Gas Company (SSGC) attributed the two-day suspension to the non-arrival of RLNG cargos from Qatar. This has created a supply bottleneck within the SSGC network, exacerbated by restrictions on offtake from local gas fields to prioritise pre-committed RLNG deliveries.
Industrial representatives have urged SSGC to immediately resume drawing from domestic fields to prevent further operational disruptions.
Mr Fudda emphasised that Pakistan’s precarious energy security, influenced by both domestic and international factors, is placing immense strain on an already overburdened industrial sector. He called for urgent government intervention, highlighting that continued disruptions could worsen industrial output, which reportedly already saw a decline in February 2026.