KARACHI: Johar Qandhari, President of the Korangi Association of Trade and Industry (KATI), has raised concerns over the recent hikes in electricity and gas charges, emphasizing that these increases have made it financially untenable for industries to sustain production and business activities.
Qandhari urged the government to reduce electricity rates to 9 cents per kilowatt-hour and to lower interest rates to 12 percent. He argued that these measures would spur economic growth, enhance exports, attract investment, and generate employment opportunities.
He also called on the government to procure power from more affordable, low-cost sources to alleviate the burden of capacity charges on the public. Qandhari criticized the contracts with Independent Power Producers (IPPs), stating that they have severely impacted the national economy.
Providing electricity at 9 cents per kilowatt-hour could lead to a significant increase in exports, estimated at US$6 billion, additional demand on the grid of 300 MW, higher revenue of Rs.500 billion, and a reduction in debt by Rs.240 billion. Qandhari stressed the importance of consulting with stakeholders to address their grievances and create a business-friendly environment that would enhance Pakistan’s competitiveness in the global market.
He also called for a reduction in interest rates, highlighting that the current inflation rate is 12 percent. President KATI expressed confidence that the business community could play a significant role in tax generation if provided with the necessary support and opportunities.
