PALSP Stands for Energy Equality in Karachi

The Pakistan Association of Large Steel Producers (PALSP) has appealed to President Asif Ali Zardari to urgently resolve the prolonged subsidy impasse affecting Karachi-based industries, particularly those under K-Electric’s (KE) jurisdiction.

In a formal letter, PALSP highlighted that despite a federal subsidy program introduced in 2021 to promote industrial competitiveness, businesses in Karachi have yet to receive the financial relief. In contrast, industries in other regions of Pakistan have been benefiting from subsidized electricity for years.

PALSP claims that KE has repeatedly delayed the subsidy’s implementation by engaging in prolonged litigation. Although the National Electric Power Regulatory Authority (NEPRA) ruled in favor of the industries in 2022 and dismissed KE’s appeals by mid-2024, the utility provider secured a stay order from the Islamabad High Court in August 2024, further stalling the process.

According to PALSP, only 17% (PKR 5.7 billion) of the total PKR 33 billion subsidy is under dispute, while the remaining 83% (PKR 27.6 billion) is undisputed and could be released immediately. The association has criticized NEPRA for not enforcing its decisions and accused the Power Division of poor case management during legal proceedings.

In one recent hearing, a senior official from the ministry admitted to being unprepared, a move PALSP says aided KE in obtaining the stay order.

The ongoing delay has left Karachi’s industries grappling with higher electricity costs, reducing their ability to compete with peers in other provinces that continue to benefit from subsidized power.

PALSP proposed the following actions to address the crisis:

• Immediate release of the undisputed PKR 27.6 billion subsidy.
• A two-week deadline for KE to submit the required calculations.
• Use of established government-KE accounting systems to accelerate disbursement.

The association emphasized that any further delays would only deepen financial challenges for industries already strained by inflation and currency depreciation.

Following PALSP’s petition, the President’s Secretariat has referred the matter to the Chief Secretary of Sindh and relevant federal ministries for urgent consideration.