Karachi’s electricity consumers are set to bear the brunt of increased costs, even as relief is offered to the rest of the country.
The rise in electricity prices, driven by K-Electric’s reliance on expensive and inefficient energy sources, is expected to significantly impact residential, industrial, and commercial users in the city over the next six months.
The Central Power Purchasing Agency (CPPA) has requested a reduction in electricity prices for all distribution companies (Discos) across Pakistan, except K-Electric, which serves the port city. This means that while the rest of Pakistan will enjoy cheaper electricity, Karachi's residents and businesses will have to pay more.
The request, submitted to the National Electric Power Regulatory Authority (Nepra), seeks to reduce electricity prices by 31 paisa per unit for all Discos except K-Electric.
However, K-Electric has requested an increase in electricity prices due to the high cost of generating electricity from expensive sources like RLNG and furnace oil.
According to Johar Ali Kandahari, President of the Korangi Association of Trade and Industry, this move will have a devastating impact on Karachi’s industry.
“The cost of production will increase so much that the industry of Karachi will necessarily be closed,” he warned.
Kandahari also pointed out the unfairness of the situation, where the rest of Pakistan enjoys lower electricity prices while Karachi is forced to pay more. “On the one hand, the rate is low by all Discos across the country, while it is high for K-Electric,” he said.
The Punjab government’s reduction of Rs.14 per unit will also benefit only the industries of Punjab, leaving Karachi's industries at a disadvantage. "If cheap goods from other provinces will come to Karachi, how will Karachi's industry work?" Kandahari asked.
“This practice is akin to slow poison for Karachi’s industry,” Kandahari remarked, emphasizing the potential long-term damage to the city’s economic health if the situation is not addressed.
