Karachi — Ahmad Azeem Alvi, President of the SITE Association of Industry (SAI), welcomed Prime Minister Shehbaz Sharif’s recent announcement to slash industrial electricity tariffs by Rs. 7.59 per unit. While appreciating the relief, he urged the Prime Minister to go a step further and end the ongoing disparity in electricity rates, especially for Karachi’s industrial sector.

Alvi highlighted that power tariffs in Karachi remain Rs. 8 to 9 per unit higher than in other regions, calling it an unfair burden on the city’s businesses. He emphasized that this discrepancy must be addressed to empower Karachi — the country’s key economic hub — to better contribute to national growth.

In his statement, Alvi explained that lower electricity costs would reduce production expenses, particularly benefiting export-oriented industries by improving their competitiveness in international markets. This, he said, would directly boost exports and strengthen the economy in the long run.

He termed the recent tariff reduction a much-needed relief, stating that soaring energy prices had been hindering industrial productivity. The new rates, he added, would ease the pressure on both manufacturing and export sectors and support overall economic stability.

Commenting on the current electricity supply mechanism, Alvi noted that power generated by KANUP is routed through WAPDA before reaching K-Electric. While K-Electric was offered direct access, concerns about the risk of large-scale outages due to reliance on a single source may have held them back. Nevertheless, he maintained, practical solutions to mitigate such risks can and should be explored.

Alvi also proposed that electricity generated from Thar coal be supplied to Karachi’s industrial zones, which would support their sustainability. He pointed out that industries in Gadap and Kathore are already benefitting from more affordable WAPDA power, suggesting a similar model could be adopted for the rest of Karachi.

He stressed that Karachi contributes over 51% of Pakistan’s total exports and more than 60% of national revenue, arguing that addressing the city's industrial challenges would have a far-reaching impact on the country’s economic performance.

Finally, Alvi praised the Prime Minister’s determination to resolve the circular debt crisis and appealed for the removal of the PHA surcharge from Karachi consumers, asserting that they are not responsible for contributing to the circular debt.