KARACHI: Chairman Businessmen Group (BMG) Zubair Motiwala and President Karachi Chamber of Commerce & Industry (KCCI) Muhammad Rehan Hanif have expressed grave concern and deep disappointment over the government’s decision to suspend gas supply to industries for two days a week, along with curtailment of supply to fertiliser plants, warning that the move could have far-reaching and damaging consequences for Pakistan’s already fragile economy. Describing the decision as extremely alarming and counterproductive, they stated that Pakistan is already facing serious economic challenges due to the continuously rising cost of doing business, particularly the exorbitant prices of gas and electricity which have significantly eroded the competitiveness of local industries. They pointed out that the repercussions of such policies are already visible as Pakistan’s exports have recently declined by 8.76 percent in February, reversing the brief recovery seen earlier and raising serious concerns among exporters and economic stakeholders. Export proceeds dropped to around USD 2.27 billion in February, while the country’s trade deficit has widened to approximately USD 25 billion, further intensifying pressure on the national economy. Motiwala and Hanif emphasised that at a time when Pakistan desperately needs to enhance exports and stabilise its external account, suspending gas supply to industries even for two days a week would severely disrupt industrial operations, reduce production capacity and ultimately cause delays or cancellations of export shipments. “Instead of supporting exporters and manufacturers, such decisions will only deepen the crisis being faced by industries and further weaken Pakistan’s export performance,” they cautioned. Referring to the government’s decision to establish a high-level Action Committee comprising 18 members to address the energy situation, Chairman BMG and President KCCI described the initiative as a positive step, but stressed that the committee would remain incomplete without proper representation from the industrial/ export community. While strongly urging the government to include representatives from the Karachi Chamber, they emphasised that the business community is in a far better position to provide practical insights, ground realities and workable recommendations for improving the overall energy management framework and reviving industrial growth. They noted that industries in Karachi and across the country are already struggling with skyrocketing energy costs, unstable policies and declining demand. The additional burden of gas suspension would force many factories to either operate at extremely low capacity or temporarily halt production altogether, which could result in massive financial losses, layoffs of workers and a sharp decline in export volumes. They also highlighted the paradoxical situation surrounding the country’s gas management policy. Only a few months ago, discussions were under way regarding the deferral of imported RLNG cargo from Qatar because the country was reportedly facing reduced demand for gas and the situation remains the same as of now. At the same time, industries were compelled to use an expensive mix of indigenous gas and RLNG at escalating ratios of 10 percent, 20 percent and even up to 40 percent RLNG, significantly increasing the cost of energy for the industrial sector. They further pointed out that due to much higher tariffs, industrial gas consumption has drastically declined because many factories have reduced operations and shut down captive power plants due to unaffordable energy costs. According to industry estimates and independent analyses, gas tariffs for captive power plants have nearly tripled in recent months, pushing the cost of gas to levels that are far higher as compared to competing economies in the region. Copyright Business Recorder, 2026