Islamabad: The steel sector has suffered an estimated loss of Rs150 billion due to the non-provision of electricity subsidy in Karachi, pushing the industry under severe financial pressure and affecting its operational capacity.
The decline in steel production and hurdles in new investments have placed potential employment opportunities at risk, raising concerns about broader economic repercussions within the industrial sector.
In a letter addressed to the finance minister, the Pakistan Association of Large Steel Producers (PALSP) stated that failure to resolve the subsidy issue could lead to serious economic consequences. The association highlighted that Pakistan’s steel industry, which is among the most electricity-intensive manufacturing sectors in the country, has incurred losses of approximately Rs150 billion because the additional government electricity subsidy for industries operating in Karachi has not been released.
Despite this situation, officials clarified that the shortage of funds was never cited as the reason for the delay.
PALSP, in its letter dated February 9, 2026, urged the finance minister to take immediate action to resolve the matter in order to prevent further losses and ensure continuity of industrial activities in the steel sector.
