KATI Raises Concerns Over Withholding FCA Relief for Karachi

Karachi: Junaid Naqi, President of the Korangi Association of Trade and Industry (KATI) has welcomed
Prime Minister Shehbaz Sharif’s recent move to reduce electricity tariffs for industrial consumers, calling
it a timely and commendable step. Junaid Naqi said the decision reflects the government’s commitment
to supporting Pakistan’s export sectors and driving industrial growth during a time of economic
uncertainty.
However, Naqi voiced strong concerns over reported efforts by the Ministry of Energy (Power Division)
to delay the implementation of the negative Fuel Cost Adjustment (FCA) for April 2025 for K-Electric
consumers. He warned that these attempts, which lack legal and procedural basis, could sabotage the
Prime Minister’s reform initiatives.
“The FCA must be determined and implemented in accordance with NEPRA’s formula-based regulatory
framework,” said Naqi. “Blocking its application solely for Karachi raises serious questions about
regulatory independence and sets a troubling precedent of administrative overreach.”
Naqi pointed out that in the past, when FCA charges were higher, the people and industries of Karachi
paid the additional costs without delay. “Now, when the relief is finally due, obstacles are being placed.
This selective treatment is unjust and erodes public trust in the government’s reforms,” he added.
He further clarified that unless a uniform FCA policy is formally approved by the federal cabinet and
directed to NEPRA, no intervention holds legal validity. Even if approved, such a policy can only be
applied prospectively, not retroactively.
President KATI called for the transparent, fair, and timely implementation of all regulatory decisions and
urged the government to allow NEPRA to function independently. Junaid Naqi stressed the need for
equal treatment of all consumers including those in Karachi and reaffirmed the importance of upholding
the rule of law.