Karachi: Junaid Naqi, President of the Korangi Association of Trade and Industry (KATI), has strongly
opposed the federal government’s decision to increase gas prices for the industrial sector, bulk
consumers, and the power sector from July 1st, calling it “disastrous” for Pakistan’s already struggling
economy.
Naqi expressed deep concern over the move, stating that industries are already burdened with
skyrocketing electricity, fuel, and raw material costs. "Now, this increase in gas tariffs will deliver a
serious blow to the economy," he said. Gas, he added, is a critical raw material for several key sectors,
particularly textiles, food processing, iron and steel, chemicals, and fertilizer, all of which will be directly
impacted.
He also criticized the government's simultaneous decision to raise fixed gas charges for domestic
consumers by 50%, noting that the indirect financial burden would also eventually fall on industries. “By
shifting the weight of this increase onto the industrial sector, the government is once again treating
businesses as scapegoats,” Naqi remarked.
The KATI President warned that the hike in gas prices would not only raise production costs significantly
but also render Pakistani exports uncompetitive in the global market. "The government seems oblivious
to the fact that a decline in exports directly affects foreign exchange reserves and slows down overall
economic momentum,” he added.
Naqi also pointed out that independent power producers (IPPs), who rely on gas to generate electricity,
would now produce even more expensive power, a cost that would ultimately be passed on to the
public, small businesses, and the industrial sector alike.
“At a time when Pakistan desperately needs industry-friendly policies to stay afloat, such decisions are
akin to stalling the wheels of economic activity,” he stressed.
Referring to OGRA’s approval of a 6.6% increase in gas tariffs for fiscal year 2025–26 to help gas
companies recover a revenue target of Rs 890 billion, including Rs 354 billion for Karachi-based SSGC
alone, Naqi said the industrial sector is being unfairly forced to shoulder the consequences of financial
mismanagement by public gas utilities.
He urged the government to immediately reverse the gas price hike for industrial users, warning that
the decision would otherwise lead to the shutdown of many production units, job losses, and further
deterioration of the economy.
"If this decision is not withdrawn, we will have no choice but to take to the streets in protest," Naqi
cautioned. “This is a time to support industry and protect Pakistan’s exports, not to suffocate them with
ill-conceived policies. There can be no economy without industry. And if industries shut down, the
government’s own revenue targets will remain a distant dream.”
