KARACHI: Muhammad Zubair Motiwala, Chairman Businessmen Group (BMG) and Muhammad Jawed Bilwani President Karachi Chamber of Commerce and Industry (KCCI) have urged Prime Minister Mian Muhammad Shehbaz Sharif for correction of peak-hour charges in industrial gas bills and relief to industry.
In a letter they to draw PM’s immediate attention towards the grave concern of the business and industrial community of Karachi regarding the gas bills received this month, which are heavily inflated due to the application of peak-hour charges instead of off-peak rates.
Despite repeated appeals from the industrial sector for relief, no corrective action has been taken so far, and the situation has now reached a critical stage where many industries, already struggling under existing economic pressures, are unable to bear such an unjustified financial burden.
It has been observed that the gas bills have been calculated by applying peak-hour rates, which is technically and procedurally incorrect.
Our assessment indicates that if the same consumption were computed on the basis of off-peak rates, the cost would be approximately Rs238 per unit; however, the amounts being charged are nearly double or even two and a half times higher. Such over-billing has created severe distress among industrial consumers, many of whom have approached KCCI in desperation.
These inflated charges are simply unaffordable, and if allowed to continue, they will inevitably lead to widespread closure of industries, loss of employment, and a sharp decline in Pakistan’s export competitiveness.
It is also repeatedly conveyed to us that these high charges are the result of IMF directives.
However, the Karachi Chamber strongly believes that this justification is misplaced. While IMF programs may call for rationalization of subsidies or fiscal reforms, they do not, under any circumstances, dictate the application of peak-hour charges to all consumption indiscriminately. Such billing practices defy logic, fairness, and the basic principles of cost-reflective pricing. The continued misuse of this interpretation is unjust and contrary to the spirit of industrial facilitation envisioned by the government.
Furthermore, the very concept of peak and off-peak categorization has become obsolete in Pakistan’s current power and energy scenario. The original rationale behind peak-hour pricing was to discourage electricity use during times of high demand. However, Pakistan now possesses surplus power generation capacity, rendering this distinction meaningless.
The continuation of such a tariff structure, when there is no shortage of supply, is counterproductive and detrimental to industrial viability. In the present context, there is no justification for maintaining a timing-based tariff, and a uniform 24-hour tariff for industrial consumers should be implemented without delay.
They said that PM well aware that the industrial sector is the backbone of Pakistan’s economy, providing employment to millions, generating exports, and contributing substantially to national revenue.
The current unjustified billing practice, if not immediately corrected, will aggravate the economic crisis, discourage investment, and force many exporters to shut down operations.
Karachi, being the country’s industrial and commercial hub, is particularly vulnerable to these adverse effects, and the sense of frustration among industrialists is growing rapidly.
In light of the above, the Karachi Chamber earnestly requests your kind intervention in this matter. We humbly urge that an immediate review be ordered of the gas bills issued to industrial consumers this month to rectify the misapplication of peak-hour rates. Any overcharged amount should be reversed or adjusted to reflect the correct off-peak calculation.
They further request that your office may kindly direct the Ministry of Petroleum, the Special Investment Facilitation Council (SIFC), and relevant regulatory authorities to hold an urgent meeting with KCCI and other key stakeholders so that the issue can be examined comprehensively, the calculation errors identified, and a transparent mechanism established for future billing.
We also appeal that the government may consider moving towards a uniform 24-hour tariff for industries, as this will simplify billing, ensure fairness, and help restore the confidence of investors and exporters.
It should also be clarified that IMF conditionalities do not override due process or principles of equity in tariff determination. Rather, policy measures must aim to strengthen, not suffocate, the productive sectors of Pakistan’s economy.
They said timely attention and decisive action of PM on this matter will go a long way in saving industries from collapse and safeguarding hundreds of thousands of jobs. The business community of Karachi remains hopeful that under your visionary leadership, this injustice will be rectified and a fair, transparent, and sustainable tariff policy will be enforced.
Copyright Business Recorder, 2025
