The association stated that despite official remarks indicating there is no delay, the effective freezing of the phased electricity subsidy for Karachi based industries has resulted in losses of approximately PKR 150 billion.
In the letter dated 9 February 2026 and addressed to Finance Minister Imdad Ullah Bosal, the association requested an immediate resolution of the issue and warned that producers could face more severe financial consequences if the matter isnt resolved promptly. Copies of the correspondence were reportedly shared with the Prime Minister’s Office and the Presidency, as well as the Sindh provincial administration, the Ministry of Energy, relevant advisory bodies, the Special Investment Facilitation Council and the Senate Standing Committee on Finance.
The issue was previously discussed at the Senate Standing Committee on Finance meeting held on 26 February 2025. During the meeting, Additional Secretary of Finance Qumar Sarwar Abbasi stated that there was no delay on the part of the government or the ministry in subsidy payments to K Electric. This statement contradicted earlier assessments by Energy Division officials, who had attributed the problem to the non release of funds.
Steel producers emphasized that uncertainty in energy costs is complicating production planning and increasing the financial burden, and they are calling on the government to announce a clear and binding payment schedule.
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