KATI president rejects DISCOs’ request to increase security deposit charges

KARACHI: Junaid Naqi, President of the Korangi Association of Trade and Industry (KATI), has rejected the request by Distribution Companies (DISCOs) to increase security deposit charges by nearly 2600 percent, calling the hike entirely unjust and illogical.

He emphasized that industries and businesses are already burdened with the highest electricity rates in the country, and such additional charges will further exacerbate their challenges.

If this unreasonable request is approved, it will apply not only across Karachi but throughout Pakistan, where consumers are already paying the highest electricity rates in the nation.

Naqi further pointed out that Distribution Companies already hold billions of rupees in unused security deposits, yet they are demanding an additional increase, which he described as exploitative.

He highlighted that electricity rate hikes have already led to a decrease in consumption, and if further financial barriers are imposed, it will discourage both new and existing connections, worsening the ongoing crisis.

Naqi called on the government to make a decisive choice: whether to keep Pakistan on the path of industrialization or shut down all industries and transition to an import-dependent economy. This decision, he argued, will determine the future of industry in Pakistan.

The KATI President urged the Ministry of Energy and NEPRA to immediately reject this request and direct the Distribution Companies to improve their revenue collection systems without passing the burden onto consumers.

He called for policies that ensure affordable and accessible electricity supply, supporting industrial development and economic stability in the country.

Copyright Business Recorder, 2025