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, labeling it as ‘disastrous’ for Pakistan’s struggling economy.

According to Korangi Association of Trade and Industry, Naqi expressed deep concern over the move, stating that industries are already burdened with increasing electricity, fuel, and raw material costs. He emphasized that this increase in gas tariffs will further harm the economy. Gas is a critical raw material for several key sectors, including textiles, food processing, iron and steel, chemicals, and fertilizers, all of which will be directly impacted.

Naqi criticized the government’s decision to raise gas prices for consumers by 50%, noting that the indirect financial burden would also eventually fall on industries. He argued that by shifting the weight of this increase onto the industrial sector, the government is treating businesses as scapegoats.

The KATI President warned that the hike in gas prices would significantly raise production costs and render Pakistani exports uncompetitive in the global market. He stated that the government seems unaware that a decline in exports directly affects foreign exchange reserves and slows down overall economic momentum.

Naqi also pointed out that independent power producers, who rely on gas to generate electricity, would now produce even more expensive power. This cost would ultimately be passed on to the public, small businesses, and the industrial sector alike.

He stressed that at a time when Pakistan needs industry-friendly policies, such decisions are akin to stalling economic activity. 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, Naqi said the industrial sector is being unfairly forced to shoulder the consequences of financial mismanagement by public gas utilities.

Naqi urged the government to 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. He cautioned that if the decision is not withdrawn, they may have no choice but to protest. He emphasized the importance of supporting industry and protecting Pakistan’s exports, warning that there can be no economy without industry, and if industries shut down, the government’s revenue targets will remain unattainable.