North Zone Pakistan Hosiery Manufacturers Association (PHMA) Vice-Chairman Salamat Ali has strongly opposed the increase in gas tariff by the Oil and Gas Regulatory Authority (Ogra). Talking to newsmen, he said the authority had allowed increasing the 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.
The PHMA Chairman observed that frequent tremendous surge in utility charges would inflate the cost of the country's exportable items, making it uncompetitive in the international market.
He said after the sharp increase in the oil prices, the raise in gas prices would not only hit the knitwear industry, but would also raise input cost in the industrial sector in the form of higher cost of production.
He pointed out that the industry was already under immense pressure from rising other inputs under the World Trade Organisation (WTO) regime, the Ogra decision was not justifiable.
The PHMA Chairman said repeated increase in the industrial inputs by the utilities under the government control was negative, especially in view of the government's claims that the export-oriented industry was ready to face the WTO challenges.
The present increase in utility charges was an unjustifiable burden on the industry, he added.
Describing this situation very harmful for the industry, he said the export-oriented sector should be provided with the cheaper utility packages as was being provided in other countries in the region.
The PHMA Chairman said it had been observed that the National Electric Power Regulatory Authority (Nepra) had 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 and Power and Finance. Salamat Ali urged the President and Prime Minister to look into the matter and not allow free hand to the authorities to increase its tariff.
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