LAHORE: President Khanewal Chamber of Commerce and Industry Khawaja Ataur Rehman have expressed serious concern over the continuous increase in electricity tariffs and heavy capacity charges, stating that the industrial sector has been pushed to the brink of collapse.
Speaking to a delegation of traders and journalists, he said factories, textile units, small industries and the agricultural sector across the country were facing a severe crisis due to the unprecedented rise in production costs. He warned that Pakistani products were rapidly losing competitiveness in international markets because of expensive electricity.
He urged the government to immediately review agreements with Independent Power Producers (IPPs) and abolish what he termed “unjustified capacity charges” included in electricity bills in order to save industry, agriculture and businesses from destruction.
Responding to a question, Khawaja Ataur Rehman said IPP agreements had become a major burden on the national economy and consumers were being forced to pay billions of rupees every month in capacity charges even without consuming electricity. He added that if the government genuinely wanted to provide relief to the public and revive industrial activity, it should clearly announce the elimination of capacity charges in the upcoming federal budget.
He said expensive electricity had severely affected not only industrialists but also ordinary citizens, traders, farmers and the export sector. The closure of industries, he added, was increasing unemployment and creating stagnation in economic activities.
He warned that if electricity prices were not reduced in real terms, the industrial crisis would intensify further, with serious consequences for the overall national economy.
Copyright Business Recorder, 2026
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