Government’s Fiscal Discipline Praised for Annual Savings from Ministry Mergers: KATI President
Karachi: The Korangi Association of Trade and Industry (KATI) President, Junaid Naqi, has hailed the federal cabinet’s decision to revise contracts with 14 Independent Power Producers (IPPs) as a transformative step for stabilizing Pakistan’s economy and offering much-needed relief to industries. He stated that reducing electricity prices by Rs10 to Rs11 per unit would significantly ease the burden on businesses struggling with surging production costs.
Junaid Naqi emphasized that the renegotiation of IPP contracts, which will result in savings of Rs1.4 trillion, is a monumental move to rectify inefficiencies in the energy sector and alleviate the mounting circular debt. He highlighted that high utility costs have long undermined the competitiveness of Pakistani industries in both domestic and international markets. This reduction in energy costs, he noted, will empower manufacturers and exporters to regain their market positions through affordable and reliable energy supplies.
The KATI president welcomed the annual savings of Rs137 billion from the revised agreements, urging
the government to channel these funds into industrial development, infrastructure projects, and overall
economic recovery to maximize their impact.
Additionally, Junaid Naqi commended the federal government’s decision to merge ministries and divisions, such as integrating the Ministry of Anti-Narcotics into the Ministry of Interior and combining the Aviation Division with the Defense Division. He described these reforms as a crucial step toward streamlining bureaucratic structures and reducing administrative expenses, which have historically strained national resources.
The savings from these mergers, amounting to millions of rupees annually, reflect the government’s commitment to fiscal discipline and reform, Naqi observed. He called for transparency in utilizing these funds to ensure their effective allocation for national progress.
Junaid Naqi underscored the need for ongoing collaboration between policymakers and the business community to ensure future reforms align with the requirements of the industrial sector. Expressing optimism, he said these decisions would pave the way for a more competitive and sustainable economic environment in Pakistan.
