Industries Threaten Shutdown Over Soaring Gas Bills

Pakistan’s industrial sector is facing another crisis as factory owners in Karachi announced plans to shut down operations in protest against what they called “crippling gas bills.” Industry leaders said the new tariffs have made it impossible to sustain production, warning that exporters are already closing units as energy costs spiral out of control. President of the Karachi Chamber of Commerce and Industry (KCCI) Rehan Hanif said the gas bills have hit manufacturers “like a lightning strike.” He cautioned that Pakistan’s fragile economy “cannot afford more strikes and shutdowns.” Former KCCI president Javed Baloch revealed that several multinational companies are exiting Pakistan, while gas utilities have written to OGRA about reducing system pressure due to falling consumption. He said national gas usage continues to decline, and according to the Pakistan Bureau of Statistics, exports have also dropped in recent months. “The cost of doing business has become so high that it’s now easier to operate abroad than in Pakistan,” Baloch said. Businessmen Group Chairman Zubair Motiwala blamed government policy for the crisis. He said the government had advised industries to install captive power plants, but has now increased gas prices for those very users. “In these conditions, the government keeps asking why exports aren’t rising,” Motiwala said. “But how can they, when industrialists are being squeezed from all sides?” Energy prices in Pakistan have surged in recent months following IMF-backed subsidy cuts and adjustments in domestic tariffs. The latest hike in gas prices, implemented in October, has raised industrial costs by over 40% on average, worsening competitiveness at a time when exports are already under pressure from regional rivals. Industry groups have demanded that the government immediately reconsider the gas tariff revision and provide relief to manufacturers, warning that large-scale closures could trigger job losses and a further drop in exports.