KARACHI: Junaid Naqi, President of the Korangi Association of Trade and Industry (KATI), has strongly opposed the federal government’s decision to increase gas prices for the industrial sector, bulk consumers, and the power sector from July 1st, calling it “disastrous” for Pakistan’s already struggling economy.
Naqi expressed deep concern over the move, stating that industries are already burdened with skyrocketing electricity, fuel, and raw material costs. “Now, this increase in gas tariffs will deliver a serious blow to the economy,” he said. Gas, he added, is a critical raw material for several key sectors, particularly textiles, food processing, iron and steel, chemicals, and fertilizer, all of which will be directly impacted.
He also criticized the government’s simultaneous decision to raise fixed gas charges for domestic consumers by 50%, noting that the indirect financial burden would also eventually fall on industries. “By shifting the weight of this increase onto the industrial sector, the government is once again treating businesses as scapegoats,” Naqi remarked.
The KATI President warned that the hike in gas prices would not only raise production costs significantly but also render Pakistani exports uncompetitive in the global market. “The government seems oblivious to the fact that a decline in exports directly affects foreign exchange reserves and slows down overall economic momentum,” he added.
Naqi pointed out that independent power producers (IPPs), who rely on gas to generate electricity, would now produce even more expensive power, a cost that would ultimately be passed on to the public, small businesses, and the industrial sector alike.
“At a time when Pakistan desperately needs industry-friendly policies to stay afloat, such decisions are akin to stalling the wheels of economic activity,” he stressed.
Referring to OGRA’s approval of a 6.6% increase in gas tariffs for fiscal year 2025–26 to help gas companies recover a revenue target of Rs 890 billion, including Rs 354 billion for Karachi-based SSGC alone, Naqi said the industrial sector is being unfairly forced to shoulder the consequences of financial mismanagement by public gas utilities.
Copyright Business Recorder, 2025
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