- September 2, 2026
- Posted by: Tresmark
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K-Electric (KE) plans to invest Rs15 billion to upgrade Karachi’s power infrastructure and improve the reliability of electricity supplies to the city’s industrial sector, KE Board Chairman Shaheryar Chishti said.
Speaking during a meeting with industrialists at the Korangi Association of Trade and Industry (KATI), Chishti said the investment would cover the installation of new cables and wires, grid upgrades, feeder bifurcation and other infrastructure improvements.
He said Karachi’s industrial sector was central to the city’s economic activity and employment, making reliable electricity supplies essential for sustaining production and investment.
Focus on transmission and distribution network
Chishti said KE’s strategy extended beyond power generation and focused on strengthening the company’s entire generation, transmission and distribution system.
The company is also maintaining regular engagement with industrial associations, including KATI, SITE and Bin Qasim, to identify electricity-related challenges and develop solutions.
KE’s network currently includes more than 2,100 feeders, with over 70% exempt from load shedding. Chishti said industrial consumers had not faced load shedding since 2013.
KE CEO Syed Muhammad Taha said the company was introducing new feeders, technologies and modern systems to address power-quality issues in industrial areas. He noted that residential settlements around certain industrial zones had contributed to supply problems.
Taha added that KE was gradually working toward transforming Karachi’s electricity network into a smart grid, including through smart metering and other digital technologies.
Industrialists call for lower power costs
KATI President Muhammad Ikram Rajput said high electricity and energy costs were placing significant pressure on Pakistan’s industrial sector and undermining the competitiveness of local products in regional and international markets.
He said electricity tariffs, fuel charges, surcharges and other additional costs were pushing up production expenses. He urged the government to review industrial electricity tariffs and reconsider additional charges that were increasing the cost burden on manufacturers.
Rajput also highlighted the impact of capacity payments, arguing that charges for unused generation capacity were adding to the difficulties faced by industry.
KATI Deputy Patron-in-Chief Zubair Chhaya said expensive energy had become a structural issue affecting the entire industrial production system. He also pointed to delays in government subsidies and financial support, which he said were creating cash-flow pressures for industrial units.
Chhaya called for long-term reforms addressing power generation costs, capacity payments, transmission losses and other structural weaknesses rather than relying solely on temporary subsidies.
Industry seeks tariff reduction
Chairman of the Standing Committee Danish Khan urged Pakistan to expand the use of renewable energy, particularly solar and wind power, to reduce electricity costs.
He said electricity costs around 8 cents per unit in some regional economies compared with approximately 14 cents per unit in Pakistan, making it difficult for Pakistani exporters to compete internationally.
Industrialists, he said, were seeking a reduction in the electricity tariff to around 9 cents per unit to improve competitiveness and support economic stability.
Standing Committee Vice Chairman Rehan Javed said each unit of electricity carried an additional debt-related burden of Rs20.56, including Rs17.33 in capacity payments and Rs3.23 through the PHL surcharge.
He said these costs were imposed on consumers before fuel costs, taxes and transmission charges were added, further increasing the overall electricity bill.
KE says tariff decisions rest with government
Taha clarified that electricity tariff changes were outside KE’s authority, although the company was engaging with relevant institutions on the matter.
He also urged consumers to pay their electricity bills on time and cooperate with KE in identifying electricity theft.
Rehan Javed stressed that continued direct communication between industrialists and KE would be essential for resolving power supply, service and quality-related issues.
The Rs15 billion investment is expected to strengthen Karachi’s industrial power infrastructure, while industry representatives emphasised that infrastructure improvements must be accompanied by more competitive electricity costs to support production, exports and new investment.
