KATI calls for permanent winter relief package

KARACHI: President of the Korangi Association of Trade and Industry (KATI) Junaid Naqi has praised the prime minister’s announcement of a winter relief package for industries, urging that it be made a permanent initiative and that the Rs33 billion in pending incremental subsidies from the Covid-19 period be released without delay.

Naqi expressed concern about the high electricity tariffs, which he said are significantly raising industrial production costs in Pakistan, making local products less competitive on the global market. “Electricity costs for industries in Pakistan remain the highest in the region, which limits our ability to compete internationally,” Naqi remarked.

He also pointed out that Karachi’s industries had previously been deprived of the Rs33 billion in incremental subsidies due to ongoing disputes between the government and K-Electric (KE). Naqi stressed that this financial burden has been directly borne by Karachi’s industries, adversely affecting their operations and profitability.

As, per Naqi, Karachi contributes 68 per cent of Pakistan’s total revenue and serves as the nation’s primary industrial hub, excluding the city’s industries from the winter relief package would have negative economic consequences. “The loss to Karachi’s industries ultimately impacts Pakistan’s broader economic health,” he said, adding that there are concerns that Karachi’s industries may be excluded from the winter package in a manner similar to the incremental subsidy.

Calling for urgent intervention, Naqi appealed to Prime Minister Shehbaz Sharif and Federal Minister for Energy Ovais Leghari to ensure Karachi’s inclusion in the winter relief package. He also urged for a swift resolution to the K-Electric dispute, emphasising the need to release the long-overdue Rs33 billion subsidy to help Karachi’s industries lower costs and enhance their global competitiveness.