K-Electric Consumers Face Higher Costs While Rest of the Country Receives Relief
The increase in electricity prices, driven by K-Electric’s dependence on expensive and inefficient energy sources, is anticipated to significantly affect residential, industrial, and commercial consumers in the
Johar Ali Kandahari, President of the Korangi Association of Trade and Industry, expressed serious concerns about the impact this decision will have on Karachi’s industrial sector, warning that the increased production costs could force many businesses to shut down.
Kandahari criticized the disparity in electricity pricing, noting the injustice of Karachi paying higher rates while the rest of Pakistan benefits from lower costs. “It’s unfair that Discos across the country offer lower rates, while K-Electric charges more,” he remarked. He also highlighted how the Punjab government’s Rs. 14 per unit reduction will benefit only Punjab’s industries, putting Karachi’s industries at a significant disadvantage. “If cheaper goods from other provinces flood Karachi, how can our local industries compete?” Kandahari questioned the city over the next six months.
The Central Power Purchasing Agency (CPPA) has proposed reducing electricity tariffs for all distribution companies (Discos) across Pakistan, except K-Electric, which supplies power to Karachi. As a result, while most of Pakistan will benefit from lower electricity costs, residents and businesses in Karachi will face higher rates.
The CPPA’s request to the National Electric Power Regulatory Authority (Nepra) calls for a 31 paisa per unit reduction in electricity prices for all Discos, excluding K-Electric. Meanwhile, K-Electric has requested a tariff increase, citing the high costs of generating electricity from expensive sources such as RLNG and furnace oil.
This approach is like a slow poison for Karachi’s industry,” Kandahari noted, stressing the potential long-term harm to the city’s economic well-being if the issue isn’t resolved.
Maria Ghanchi 
Arshad Hussain