Karachi Steel Sector Suffers Rs150 Billion Loss Amid Electricity Subsidy Delay
Islamabad: The steel sector in Karachi has suffered a loss of approximately Rs150 billion due to the non-provision of electricity subsidies, placing the industry under severe financial strain.
The Pakistan Association of Large Steel Producers (PALSP) highlighted that reduced production and delayed investment are putting potential jobs at risk. In a letter to the Finance Minister, PALSP warned that failure to address the subsidy issue could result in serious economic consequences.
The association noted that Pakistan’s steel industry, one of the country’s largest electricity-consuming manufacturing sectors, has been significantly affected because the additional government electricity subsidies for Karachi-based plants have not been disbursed.
Authorities, however, have clarified that the delay has never been due to a lack of funds. On 9 February 2026, PALSP formally requested the Finance Minister to resolve the matter urgently.
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