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Home Breaking News

KCCI seeks PM’s intervention on overcharged gas bills

byCT Report
11/10/2025
in Breaking News, Chambers & Associations, Latest News, Pakistan Chambers
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KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) has appealed to Prime Minister Muhammad Shehbaz Sharif to take urgent notice of what it calls miscalculated and inflated gas bills issued to industrial consumers this month.

In a detailed letter dated October 10, 2025, KCCI President Muhammad Jawed Bilwani highlighted the growing alarm among Karachi’s business and industrial community regarding excessive billing that has placed an unbearable burden on manufacturers. According to KCCI, the inflated amounts are the result of peak-hour rates being wrongly applied instead of off-peak rates — a procedural error that has effectively doubled or even tripled energy costs for industries.

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The chamber’s assessment indicates that if gas consumption were calculated on an off-peak basis, the rate would stand around Rs238 per unit. However, current bills reflect charges nearly two and a half times higher. “This unjustified billing has thrown many industries into financial distress,” the letter reads. “Several industrialists have reached out to KCCI in desperation, warning that if the situation persists, factory closures, massive layoffs, and reduced export competitiveness are inevitable.”

KCCI also rejected the claim that these inflated charges stem from International Monetary Fund (IMF) directives. The chamber argued that while IMF programs may recommend fiscal reforms and rationalization of subsidies, they do not mandate the blanket application of peak-hour tariffs. “Such interpretations are misleading and go against the spirit of industrial facilitation that the government itself promotes,” Bilwani asserted.

Furthermore, KCCI questioned the continued relevance of the peak and off-peak concept in Pakistan’s current energy scenario, noting that the country now has surplus power generation capacity. The chamber contended that a timing-based tariff structure is outdated and counterproductive, urging the government to adopt a uniform 24-hour tariff for industrial users to ensure fairness and simplicity in billing.

The letter also emphasized that Pakistan’s industrial sector is the cornerstone of the national economy, employing millions, generating significant export revenue, and contributing to the treasury through taxes and duties. “If this flawed billing mechanism is not corrected immediately, it will deepen the economic crisis, deter future investments, and severely damage Pakistan’s export potential,” KCCI warned.

To resolve the issue, KCCI requested the Prime Minister to order an immediate review of the gas bills and to direct the Ministry of Petroleum, the Special Investment Facilitation Council (SIFC), and relevant regulators to hold an urgent meeting with the chamber and key stakeholders. The goal, KCCI stated, is to identify calculation errors, correct overcharged amounts, and establish a transparent billing mechanism moving forward.

KCCI concluded by expressing hope that Prime Minister Shehbaz Sharif’s “timely and decisive action” will restore industrial confidence, prevent job losses, and ensure that energy pricing policies support — rather than stifle — Pakistan’s productive sector.

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