KCCI calls for urgent release of Rs28b for industriesBy our correspondentPresident of the Karachi Chamber of Commerce & Industry (KCCI) Iftikhar Ahmed Sheikh has urged the government to promptly release the earmarked Rs7 billion and arrange the remaining Rs21 billion for Karachi-based industries.
Despite commitments and assurances from previous governments, the funds for incremental consumption, totaling Rs28 billion, have yet to be released, causing significant concerns among the business community. President KCCI emphasized the injustice of withholding funds earmarked for Karachi, the largest contributor (over 68 percent) to the national exchequer.
He called on the government to implement its decision to allow a power tariff rate of 9 cents/KWh to industrial consumers in Karachi, a commitment reiterated by the energy minister on various platforms but still pending official notification. The delays in releasing the overdue Rs28 billion have heightened anxiety among business community members, already grappling with the soaring cost of doing business, primarily driven by high energy tariffs.
President KCCI stressed the urgency of releasing funds to avert the looming risk of industrial shutdowns, which could significantly impact the already fragile economy and result in massive unemployment. Highlighting the challenges faced by Karachi-based industries, President KCCI expressed concern over the closure of numerous small and medium-sized industries and the precarious situation of large-scale manufacturing units. The economic downturn, exorbitant energy tariffs, currency depreciation, high borrowing costs, and substantial increases in input costs are pushing Karachi-based industries towards a dire situation, requiring immediate attention and support.
