Karachi: Muhammad Jawed Bilwani, President of the Karachi Chamber of Commerce and Industry (KCCI), has issued a warning about the potential widespread closure of medium and large-scale industries following the government’s decision to suspend gas supply to Captive Power Plants (CPPs) by 2025. This policy, mandated under an agreement with the International Monetary Fund (IMF), is anticipated to severely impact industries that have heavily invested in CPPs, which cannot operate without a stable gas supply.

According to Karachi Chamber of Commerce and Industry, the decision, which aligns with IMF conditions, could dismantle the significant investments made in CPPs, spurred by earlier government incentives during electricity shortages. CPPs, known for their efficiency and reliability, provide essential power to industries that cannot depend on the erratic electricity supplied by K-Electric. Bilwani criticized the Planning Commission for its short-sighted policy shift, which he argued would not only disrupt production but lead to irreversible economic damage due to the shutdown of these plants. He also highlighted the financial implications of diverting industrial gas to other sectors, which would necessitate substantial government subsidies and lead to increased operational losses for gas companies.