KARACHI: President of the Korangi Association of Trade and Industry (KATI), Muhammad Ikram Rajput, has called for the immediate abolition of the cross-subsidy in electricity tariffs for industries, citing the additional cost as a significant factor making industrial operations financially unviable and uncompetitive.

According to Korangi Association of Trade and Industry, the current cross-subsidy adds a burden of Rs4.5 to Rs7 per unit on electricity costs, which translates to nearly a 20 percent additional charge for industrial units. This, Rajput argued, exacerbates the challenges already faced by the industrial sector, including high production costs and weak demand.

Rajput questioned the Ministry of Energy's claims of improved performance in the power sector, noting that a competitive electricity tariff for industries remains elusive despite purported sector stability. He emphasized that affordable electricity is crucial for export growth and job creation, warning that the Prime Minister's goals of boosting exports and exiting the IMF program are unattainable under the current tariff regime.

Criticizing the three-year incremental consumption package, Rajput highlighted its restrictive nature, which excludes several industrial units. He also expressed concern over load factors imposed by the Power Division, arguing that they lack technical justification and undermine the package's effectiveness in stimulating electricity demand.

Rajput urged Federal Minister for Energy (Power Division) Sardar Awais Leghari to remove the cross-subsidy from industrial electricity bills and review the incremental consumption package to better support industrial activity. He concluded by linking the future of industry and economic recovery to fair and rational electricity pricing.