KARACHI: Referring to a news item appearing in a section of press, Acting President Karachi Chamber of Commerce & Industry (KCCI), Muhammad Raza expressed serious concern and strong opposition to the proposed amendments to the Nepra Act, 1997 and the Electricity Act, 1910, which indicated that the National Electric Power Regulatory Authority (Nepra) may be placed under the administrative control of the Power Division. Muhammad Raza stated that the proposed amendments effectively strike at the very foundation of regulatory independence, which is a universally accepted principle for ensuring transparency, predictability, and credibility in utility regulation. He cautioned that placing Nepra under the direct influence of an executive ministry would compromise its ability to make impartial, technically sound, and cost-reflective decisions, thereby weakening confidence in Pakistan’s power sector governance framework. He pointed out that independent regulators are established precisely to act as neutral arbiters between the government, utilities, investors, and consumers. Any move that transforms Nepra into a subordinate body of the Power Division would not only undermine its authority but also raise serious concerns about politicisation of tariff determinations and regulatory decisions, which must remain insulated from short-term administrative or political pressures. He warned that such amendments could severely damage investor confidence at a time when Pakistan desperately needs private sector participation to address chronic inefficiencies, mounting circular debt, and persistent capacity payment issues in the power sector. He emphasised that investors require regulatory certainty and independence, and any perception of executive interference would deter fresh investment and increase the cost of capital for ongoing and future projects. Muhammad Raza further stated that weakening Nepra’s autonomy would ultimately harm industrial and commercial consumers, who already face uncompetitive electricity tariffs and unreliable supply. An independent regulator is essential to ensure fair scrutiny of costs, efficiency benchmarks, and service standards, whereas an administratively controlled regulator may be compelled to prioritise short-term fiscal or political considerations over long-term sector sustainability and consumer protection. He also questioned the rationale behind the proposed amendments, noting that policy disagreements between a regulator and a ministry should be resolved through structured dialogue and institutional mechanisms, not by curtailing the regulator’s independence. Such an approach, he said, sets a dangerous precedent and reverses years of reform efforts aimed at strengthening governance and accountability in the power sector. Raza urged the government to immediately reconsider the proposed amendments and initiate comprehensive consultations with all stakeholders, including chambers of commerce, industry representatives, energy experts, and consumer bodies. He stressed that Pakistan’s economic revival depends on transparent, credible, and independent institutions, and that weakening Nepra would be a regressive step with long-term negative consequences for the economy. Copyright Business Recorder, 2026