The Karachi Chamber of Commerce & Industry (KCCI) has voiced strong opposition to the government’s proposal to increase gas tariffs for industrial usage, calling the move “illogical and harmful” to Pakistan’s already struggling manufacturing sector.

Zubair Motiwala, Chairman of the Businessmen Group, and KCCI President Muhammad Jawed Bilwani stressed that the proposed hike is unjustified amid falling Brent crude prices and a significant surplus of imported RLNG — with 300 to 400 MMCFD going unused due to high prices and excessive taxation.

They criticized the inefficiencies in the gas supply system and highlighted that only about 80 to 100 IPPs use process gas, while over 8,000 SMEs rely on it for their survival. A tariff hike, they warned, would further burden these enterprises, already affected by new tax measures in the national budget. Instead, KCCI urged the government to reduce process gas tariffs by at least 20% to support industrial operations, boost exports, and stimulate economic activity.

Referencing OGRA’s May 2025 decision, which reduced the SSGC gas tariff by PKR 103.95 per MMBtu to PKR 1,658.56, they questioned the rationale behind proposing an increase for industrial users. They argued that contradictory pricing policies damage investor confidence and industrial stability.

They further pointed out that OGRA’s assumed Brent crude price of USD 75.33 per barrel is higher than current global rates, resulting in inflated pricing models. Petitioners at OGRA’s hearings also highlighted a projected surplus of 400 MMCFD RLNG, equivalent to nearly 25 LNG cargoes, which should be utilized more efficiently rather than penalizing the industrial sector.

KCCI called on the Economic Coordination Committee and the government to withdraw the proposal and instead adopt policies that promote industrial growth and economic resilience.