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People of Karachi feeling the pinch

The Express Tribune • • 1 min read

People of Karachi feeling the pinch

According to an economist's column in The Express Tribune, Karachi contributes a disproportionate share of national revenue yet receives too little of the benefits from public investment. Citing Federal Board of Revenue data, the writer says Karachi's Large Taxpayer Office and Medium Taxpayer Office together collected Rs1.94 trillion in direct taxes in 2024-25, about one-third of the national total of Rs5.792 trillion. The column also puts the city's GDP share at over one-fourth, by several estimates, while it is home to roughly one-tenth of the national population.

The piece also points to the PHL surcharge, which Karachi consumers have paid at around Rs124 billion from May 2023 until June this year. On tariffs, it notes that Nepra revised K-Electric's rate to Rs32.37/kWh in October 2025, a rate the Nepra Appellate Tribunal upheld on September 22, 2026. Reports of a suspension in that order have added uncertainty, and the column says Shanghai Electric withdrew a $1.77 billion bid for KE citing regulatory uncertainty.

The writer argues that because Karachi contributes heavily to the national revenue pool, its access to low-cost power should not be treated as a concession or favour. The piece is an opinion column by an economist, so its argument reflects the writer's view rather than reported news.

At a glance

  • Karachi's large and medium taxpayer offices collected Rs1.94 trillion in direct taxes in 2024-25.
  • The column says Karachi customers paid about Rs124 billion in PHL surcharge from May 2023 to June.
  • Nepra's K-Electric tariff was revised to Rs32.37/kWh, and reports point to a suspension of that order.
Sectors:Power Generation & Distribution

Originally reported by The Express Tribune

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