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Fuel Crunch Risks Factory Closures in Pakistan’s Business Center

  • Karachi businesses warn that they can’t sustain production
  • Utility may ration power to industry for first time in decade

Factories in the commercial capital of Pakistan are warning that they may need to shut production due to sky-high energy costs, another blow to the nation’s fledgling economy.

Surging power costs make it impossible to continue production for 40,000 industries in Karachi, according to an appeal by nine business groups in local newspapers on Thursday. The business groups appealed to the government for cheaper fuel charges for Karachi, one of world’s biggest cities with a population of more than 20 million.