ISLAMABAD: The nation’s major steel producers have raised staunch objections regarding the stark discrepancy faced by Karachi-based industries in accessing the Government’s Incremental Units Consumption Subsidy. This subsidy, aimed at alleviating post-COVID economic strains and operational from July 2021 to October 2023, has been utilized by industries across the country. However, Karachi industries continue to grapple with a legal dispute between K-Electric and the Power Ministry, thereby depriving them of this vital financial assistance.
The discrepancy in distributing this subsidy raises alarming doubts about the fairness and commitment of state authorities in delivering impartial support. Despite reassurances from entities such as the National Electric Power Regulatory Authority (NEPRA), the Power Division, and the Minister of Energy, Karachi industries are yet to receive the promised relief. This delay has plunged these businesses into a state of financial uncertainty, exacerbating their existing challenges.
While the government has swiftly extended support to the Utility Company of Karachi through long-awaited agreements, a similar urgency is noticeably lacking for industrial units.
The Pakistan Association of Large Steel Producers (PALSP), the representative body of large steel producers, has urgently appealed to the Prime Minister and relevant ministries through a recent letter. PALSP seeks the Prime Minister’s intervention to address this pressing issue and safeguard Karachi’s industries.
The evident bias against Karachi industries in implementing the Incremental Units Consumption Package casts doubts on principles of fairness, equity, and the government’s dedication to fostering nationwide industrial growth. Such discriminatory actions erode business trust and hinder their ability to flourish. The ongoing plight faced by Karachi-based industries, compounded by the non-disbursement of this subsidy, adds to the multifaceted challenges besieging the industry.
In an economic environment marked by currency depreciation, soaring borrowing costs, and substantial increases in input expenses, especially energy prices, manufacturers grapple with urgent capital requirements. The uncertain fate of the subsidy, initially perceived as a beacon of hope, now hangs in limbo, making it exceedingly difficult for industries to sustain themselves. Immediate government action is imperative to prevent irreparable closures of these industries.
PALSP’s plea underscores the pressing need for the Government’s proactive engagement to ensure fairness and equity in disbursing this pivotal subsidy, thereby preserving the vigor of Karachi’s industrial landscape.
