PM urged to expedite Rs23bn power bill relief

KARACHI: President Karachi Chamber of Commerce & Industry (KCCI) Muhammad Jawed Bilwani has appealed the Prime Minister Shehbaz Sharif to ensure that the long-pending relief of Rs23 billion in the electricity bills on incremental consumption is released without further delay by duly incorporating provision in the forthcoming federal budget for FY 2025–26.

Despite being allocated in previous budgets, the relief has yet to be disbursed, causing severe financial stress to the Karachi’s industrial sector only as this relief has been provided to the rest of the country.

In a formal letter addressed to the Prime Minister, President KCCI acknowledged the government’s efforts to address challenges faced by the business community and improve Pakistan’s economic landscape.

However, he expressed grave concern over the delay in releasing the subsidy for incremental electricity consumption from July 1, 2021, to October 21, 2023, stressing that Karachi’s industries continue to bear the brunt of administrative and legal setbacks.

He pointed out that the total subsidy amount for the period is Rs33 billion, of which Rs23 billion is undisputed and should have been disbursed.

Budgetary allocations were already made in FY 2021-22 (Rs22 billion), FY 2022-23 (Rs13 billion), and FY 2023-24 (Rs7 billion), but the funds have not reached the intended recipients due to procedural and legal delays involving K-Electric.

“K-Electric operated without a stay order for nearly nine months yet failed to pass on the subsidy to consumers,” said Bilwani, pointing to the lack of enforcement by NEPRA and subsequent legal hurdles that have prolonged the crisis.

He added that despite the dismissal of KE’s appeals by a Tribunal in July 2024, the matter stands stalled due to a stay order granted by the Islamabad High Court.

KCCI emphasized the need for immediate verification of the subsidy figures by the Power Division and NEPRA, urging the government to ensure that the verified amount is reflected in the upcoming federal budget.

More importantly, KCCI proposed that the undisputed Rs23 billion be released directly to industrial consumers rather than through KE, in order to prevent further delays.

“This is not just a matter of legal obligation; it is a question of economic justice and national interest,” Bilwani stated.

“Ensuring that Karachi’s industries receive this long-overdue relief is essential for sustaining industrial operations and maintaining economic stability across Pakistan”, he added.

Jawed Bilwani hoped that the Prime Minister will intervene swiftly to resolve the issue, restore confidence in government policy, and deliver the much-needed support to Karachi’s industrial backbone.