KARACHI: President of the Karachi Chamber of Commerce & Industry (KCCI), Rehan Hanif, has voiced strong opposition to the proposed Fuel Charges Adjustment (FCA) of Rs2.5182 per unit for July 2026 and urged the National Electric Power Regulatory Authority (NEPRA) to reject the anticipated Quarterly Tariff Adjustment (QTA) of approximately Rs1.34 per unit. Hanif warned that these changes could place further financial strain on industries already struggling with high costs, potentially leading to closures.

According to the Karachi Chamber of Commerce and Industry, Hanif highlighted that the combined effect of these adjustments could result in an additional Rs3.86 per unit charge on September's electricity bills, excluding taxes. With the expiration of the existing negative QTA relief and the positive FCA in August bills, the net increase in September could exceed Rs5.09 per unit before taxes, he noted.

In his statement, Hanif criticized the tariff adjustments as counterproductive to Prime Minister Shehbaz Sharif's economic vision, which aims to reduce business costs and boost industrial output. He emphasized that only well-capitalized industrial units might withstand these financial pressures by investing in alternative energy sources, while smaller businesses could face severe challenges.

Hanif further questioned the rationale behind penalizing consumers for underestimated reference costs and accused tariff-setting authorities of creating a mechanism that perpetuates surcharges instead of stable tariffs. He also expressed concern over the persistent issue of circular debt in the power sector, despite a significant restructuring effort.

Highlighting the economic implications, Hanif cited statistics showing a decline in large-scale manufacturing output and an increasing trade deficit, urging for policy alignment with industrial and export goals. He called for NEPRA to reconsider the proposed FCA and QTA adjustments and for Prime Minister Sharif to engage in discussions with key stakeholders to address these challenges effectively.

The KCCI president concluded by advocating for a transparent and rational tariff system that supports industrial growth without passing inefficiencies onto consumers.