Karachi-based steel industry says stuck in legal struggle

04 Oct, 2023

ISLAMABAD: The inordinate delay in decision-making is fatal for Karachi-based industry which is suffering a lot due to pending Tribunal decision on the application of K-Electric that has challenged the extension of incremental consumption package for K-Electric industrial consumers.

The whole country is benefiting from incremental consumption package except for Karachi-based industries. The Nepra Tribunal is one of the main factors causing this delay, as the case has been pending in the Nepra Appellate Tribunal for a year without much progress.

There has been multiple hearing, and things have not moved forward. Nepra AT needs to expedite and resolve this case. The Tribunal seems to be a bottleneck for delayed cases, and we are suffering due to their incompetence.

The Tribunal appears to be an inadequate department that is discouraging Karachi-based industries from remaining functional, potentially leading to the closure of all industries if this issue is not resolved. We earnestly request the Government of Pakistan to prioritize the resolution of this issue in the next 30 days. Karachi-based steel industry is running from pillar to post since last two years for the legitimate right.

Wajid Bukhari, Secretary General PALSP stated that our Association knocked the doors of all the concerned departments, officials and adopted the legal route through filing case in courts for issuance of notification to avail the facility and avail its legitimate right but all efforts in vain and seems deaf ears of NEPRA, Ministry of Energy (Power Division) as well as KE.

Exhausting every avenue of recourse, the Pakistan Association of Large Steel Producers (PALSP) and other affected industries have pursued legal action. Appeals have been made to NEPRA Consumer Affairs Department, the Ministry of Energy (Power Division), the Competition Commission of Pakistan, the NEPRA Appellate Tribunal, and even the Honorable Sindh High Court. However, their efforts have been met with a disheartening lack of response and action.

Despite assurances from multiple quarters, including the Ex-Chairman of the National Electric Power Regulatory Authority (NEPRA) and the current Secretary of Power, the package remains elusive for Karachi industries. Promised relief has not materialized, leaving these businesses in a state of uncertainty and financial strain.

The discrimination against Karachi industries in the implementation of the Incremental Units Consumption Package sends a disheartening message. It raises questions about equity, justice, and the government’s commitment to supporting industries across the country. Such actions undermine the trust of businesses and hinder their ability to thrive.

Karachi-based industry is suffering a lot due to non-issuance of this notification. Nowadays when the industry which is already going through hard times and on brink of collapse due bad economic situation, massive currency depreciation, high borrowing costs, colossal hike in input costs especially energy prices charges that have make manufacturers weary of capital requirements made it almost impossible for them to pay high amounts of interest with meager profit margins the facility was like a breather but unfortunately the industry is unable to get benefit of this facility.

Copyright Business Recorder, 2023

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