Copyright brecorder
KARACHI: Chairman Businessmen Group (BMG) Zubair Motiwala and President Karachi Chamber of Commerce & Industry (KCCI) Rehan Hanif have expressed strong concern over the recent revision in K-Electric’s Multi-Year Tariff (MYT) announced by the National Electric Power Regulatory Authority (NEPRA) for FY2024–FY2030, warning that this move will inevitably create serious problems for Karachi’s power consumers, both industrial and residential. They noted that NEPRA’s revised determination issued on October 20, 2025, has reduced KE’s average tariff from Rs 39.97/kWh to PKR 32.37/kWh, a cut of PKR 7.6/kWh, which is likely to disrupt the utility’s operations and lead to negative consequences for consumers. “This drastic reduction, if not reviewed, will directly result in increased load shedding, deterioration in service quality, and further delays in strengthening Karachi’s fragile transmission and distribution systems”, they warned. Zubair Motiwala and Rehan Hanif stressed that the issue is not KE’s profitability, but the inevitable impact such an abrupt and severe tariff revision will have on the people and industries of Karachi. “When the city’s only power supplier faces a funding shortfall, the first victims are always the consumers who suffer from blackouts, low voltage, and slow response to maintenance. This is what the business community fears will happen again if the government does not act promptly”, they cautioned. They emphasized that the government must intervene immediately to review NEPRA’s decision before it pushes Karachi into darkness. “The sudden cut in tariff allowances, such as reducing distribution loss targets and eliminating recovery loss margins, might appear as reform measures on paper but, in reality, will translate into operational disruptions that will hurt consumers and industries alike”, they added. KCCI leaders reminded that Karachi’s industries are already struggling with soaring energy and production costs, high gas tariffs, and an unjust gas levy on captive power plants. “Any additional disruption in power supply will make it impossible for industries to continue operations, leading to further unemployment and loss of exports”, they stated. They also urged the government to engage with stakeholders, including KCCI, before finalizing or enforcing any tariff changes that can affect the entire city’s economy. “Karachi’s energy security cannot be put at risk through unilateral regulatory decisions”, they said. Zubair Motiwala and Rehan Hanif concluded by urging the federal government to immediately review the revised MYT until a transparent consultation is held. “It is essential to ensure that regulatory decisions do not result in chaos for consumers and industries. The government must protect Karachi’s citizens and its industrial base from another wave of relentless power outages and operational breakdowns that K-Electric may be forced to inflict to reduce its expenditures and offset the losses caused by the MYT revision”, they asserted. Copyright Business Recorder, 2025
