KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) has expressed strong opposition to proposed amendments to the NEPRA Act, 1997 and the Electricity Act, 1910, which suggest that the National Electric Power Regulatory Authority (NEPRA) might come under the administrative control of the Power Division. Acting President of KCCI, Muhammad Raza, emphasized that these changes could undermine regulatory independence, a principle crucial for ensuring effective utility regulation.

According to Karachi Chamber of Commerce and Industry, Muhammad Raza argued that placing NEPRA under the influence of an executive ministry could compromise its impartiality in decision-making and weaken confidence in the governance of Pakistan's power sector. He highlighted that independent regulators serve as neutral arbiters among the government, utilities, investors, and consumers, and that the proposed amendments could politicize tariff determinations and regulatory decisions.

Raza warned that such changes might deter private sector investment, critical for addressing inefficiencies and financial issues in the power sector. He stressed that investor confidence relies on regulatory certainty and independence, and any executive interference could increase the cost of capital for current and future projects. Additionally, he noted that weakening NEPRA's autonomy could adversely affect consumers facing high tariffs and unreliable supply.

Questioning the rationale behind the amendments, Raza called for resolving policy disagreements through dialogue and institutional mechanisms rather than curtailing regulatory independence. He urged the government to reconsider the amendments and engage in consultations with stakeholders, emphasizing the importance of independent institutions for Pakistan's economic revival.