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Pakistan Hosiery Manufacturers Association (PHMA) (North Zone), Vice Chairman Salamat Ali has strongly opposed the increase in gas tariff by Ogra. Talking to newsmen, he said the authority had allowed increase in gas tariff by 8.25 percent for all categories of consumers instead of downward revision to bring it at par with rates prevalent in other countries in the region. Chairman, observed that this frequently tremendous surge in utilities charges would inflate the cost of country's exportable items, making it uncompetitive in international market.
He said raising gas prices when petrol prices have already been increased sharply showing a worsen upward trend would not only hit the knitwear industry but also raise input cost in industrial sector in the form of higher cost of production at a time, when the industry is already under immense pressure from rising other inputs under the era of WTO regime.
Chairman said that repeated increase in the industrial inputs by the utilities under government control was negative. On one side the government claims that export oriented industry was ready to face WTO era while on the other present increase in utilities charges was an unjustifiable burden on the industry.
He described this situation as very harmful for industry and said that export-oriented sector should be provided cheaper utility packages as provided in other countries of the region.
Chairman PHMA said that it has been observed that Nepra has also allowed raise in industrial and commercial tariff against the determination of October 2004, which the government did not notify due to controversy over subsidy involving the ministries of water & power and finance.
Salamat Ali urged the President and Prime Minister to look into this serious matter and not allow free hand to the authorities to increase its tariff.

Copyright Business Recorder, 2005

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