Karachi: In a firm rebuke to the recent governmental increases in petrol and electricity prices, Johar Qandhari, President of the Korangi Association of Trade and Industry (KATI), has voiced significant opposition. Highlighting the decision by the Oil and Gas Regulatory Authority (OGRA) to increase petrol prices by Rs 9.99 per liter and the National Electric Power Regulatory Authority's (NEPRA) 170% rise in electricity tariffs, Qandhari warned of dire economic consequences, including industry shutdowns and rising unemployment.
According to Korangi Association of Trade and Industry, these steep price adjustments have already resulted in the closure of over 100 industrial units, escalating unemployment and inflating costs across the board. Qandhari emphasized that these measures threaten the nation’s economic fabric, with a noted decline in exports from $19 billion to $16 billion attributed directly to these increased operational costs.
The persistent escalation of electricity costs, Qandhari argued, could further deteriorate the export sector, plunging the economy into a more profound crisis. He also criticized the inflationary impact of rising petroleum prices on the general populace, undermining the overall economic stability. Despite prior assurances from the Prime Minister regarding relief on industrial electricity rates, the benefits have been overshadowed by these recent hikes, complicating the path to economic growth targets.
Urging immediate government action, Qandhari called on the Prime Minister and the Federal Minister of Energy to reduce electricity costs for the industrial sector to bolster competitiveness on the global stage. He highlighted the advantage enjoyed by regional competitors like Bangladesh, Vietnam, and India, who benefit from lower energy costs, making their products more attractive internationally.
“The government must urgently formulate a relief policy for the export industry to not only enhance income but also boost exports,” Qandhari appealed. “Immediate measures are necessary to stabilize the economy and support the industrial sector.”