The Karachi Metropolitan Corporation (KMC) has sharply increased the Municipal Utility Charges and Taxes (MUCT) for industrial and commercial consumers, raising the monthly rate from Rs400 to Rs750. The nearly 100% hike has triggered strong opposition and a fresh political debate over the legality of the move.
According to business community representatives, the new rates being collected through K-Electric bills are almost double the previous amount, creating an additional financial burden on traders, shopkeepers, and industrial units already struggling with inflation and high energy costs.
Opposition leader and Jamaat-e-Islami (JI) City Council member Advocate Saifuddin has served a legal notice on K-Electric CEO Moonis Alvi, demanding an immediate rollback of the increased charges. He argued that K-Electric, which only acts as a collection agent on behalf of KMC, has no authority to raise or alter utility rates. Saifuddin further claimed that the hike was introduced without formal approval of the elected City Council, making it unlawful.
The opposition also pointed out that in June 2024, the council had approved a rate of Rs400 per month for industrial and commercial properties. While there was a proposal to increase it to Rs550 for 2025, the matter was deferred, and no new resolution was passed. Despite this, K-Electric has now started billing Rs750, which Saifuddin called an “arbitrary and illegal act” that disrespects the mandate of the elected council and imposes unjust costs on Karachi’s citizens.
On the other hand, Karachi Mayor Murtaza Wahab defended the increase, dismissing opposition claims as “political point-scoring.” He clarified that the revised rates were indeed approved during the City Council’s budget session, and therefore carry full legal backing. Wahab further explained that the slab revision only applies to industrial and commercial consumers, as these sectors make extensive use of municipal services and are more vulnerable to emergencies such as fires.
The dispute has once again highlighted the long-standing tensions between Karachi’s municipal administration, the opposition, and the business community—underscoring the challenges of urban governance, taxation, and public trust in the country’s largest city.
