ISLAMABAD: The Pakistan Association of Large Steel Producers (PALSP) strongly protests over the stark disparity faced by Karachi-based industries in the disbursement of the Government’s Incremental Units Consumption Subsidy.
The subsidy, spanning from July 2021 to October 2023, has been availed by industries nationwide, while Karachi industries grapple with a legal battle between K-Electric and the Power Ministry.
This subsidy, conceived to alleviate industries during post-COVID economic challenges, reveals a distressing discrepancy in its allocation, raising concerns about the commitment of state authorities towards equitable support.
Despite assurances from entities such as the National Electric Power Regulatory Authority (NEPRA), the Power Division, and the Minister of Energy, the subsidy remains elusive for Karachi industries. The promised relief is yet to materialize, plunging these businesses into a state of uncertainty and financial strain.
While the government shows positive support for the utility company of Karachi through the implementation of long-awaited agreements, the same urgency is lacking for industrial units. PALSP calls upon the Prime Minister to intervene and resolve this pressing issue for the sake of Karachi Industries.
The apparent discrimination against Karachi industries in the implementation of the Incremental Units Consumption Package sends a discouraging message, raising questions about equity, justice, and the government’s commitment to supporting industries nationwide.
Such actions erode the trust of businesses and impede their ability to thrive. The current predicament faced by Karachi-based industries, compounded by the non-issuance of this subsidy, adds to the challenges already besetting the industry.
In the current economic climate, marked by currency depreciation, high borrowing costs, and substantial increases in input costs, particularly energy prices, manufacturers are grappling with capital requirements.
The subsidy, initially a breath of fresh air, now hangs in limbo, making it nearly impossible for industries to weather the storm. Urgent action by the Government is essential to prevent the irreparable closure of these industries.
Copyright Business Recorder, 2024