Experts warned that dismantling captive power plants risks halting Karachi’s industrial growth and endangering thousands of workers’ livelihoods
By our correspondent
KARACHI: A recent meeting held at the Governor House between Muttahida Qaumi Movement-Pakistan (MQM-P) leaders and federal ministers has brought to light rising tensions over proposed federal policies set to impact Karachi’s industrial sector. Sources close to the talks reveal that MQM-P voiced serious concerns about government plans to raise tariffs on captive power plants and to separate these plants from the industries they currently serve.
The party fears such measures could seriously disrupt industrial output, jeopardize employment, and harm Karachi’s export potential. MQM-P leaders expressed frustration over being sidelined in consultations on these pivotal decisions, stressing the need for their inclusion given their coalition role and the direct effect on their constituencies.
They warned that dismantling or detaching captive power plants would stall Karachi’s industrial growth and threaten the livelihoods of countless workers who depend on these industries. Federal ministers countered by noting that the cabinet had already approved the captive power plant policy back in 2021, suggesting there was limited scope for reversing the decision.
On the topic of tax reforms, MQM-P representatives highlighted the contentious issue of agricultural income taxation. While the International Monetary Fund (IMF) recommended taxing agricultural income, the federal government had deferred this to provincial governments. MQM-P expressed doubts that provinces would take meaningful action against powerful landlords and feudal interests, while hoping the upcoming budget would ease the tax burden on salaried individuals.
Despite these concerns, MQM-P remains cautiously optimistic about bringing agricultural income into the tax net in the future. The party also emphasized Karachi’s unique economic challenges, particularly those faced by traders, positioning itself as a key stakeholder in addressing the city’s fiscal and developmental issues. They welcomed the government’s attempts to consult stakeholders ahead of the budget and pressed for increased funding for the Karachi-Hyderabad development package.
Among the priorities MQM-P underscored were vital projects such as the Karachi Circular Railway, the K-IV water supply scheme, and broader infrastructure rehabilitation in the city—initiatives seen as essential for Karachi’s growth and wellbeing. This meeting reflects ongoing negotiations as MQM-P and the federal government work to strike a delicate balance between national fiscal policies and safeguarding Karachi’s economic stability.
