Some 19 associations, representing the country's large and small-scale textile units, did not participate in the hearing of Oil and Gas Regulatory Authority (Ogra) on Wednesday, saying that the regulators had failed to cap the domestic gas prices, leading textile manufacturers told Business Recorder.
All textile associations unanimously boycotted the hearing that the Ogra had convened on Sui Southern Gas Company Limited (SSGCL) plea, seeking an increase in the proposed prices of gas for 2007-08, they said.
The textile sector related associations believed the Ogra did not have the power to implement its notifications, therefore the representatives of textile associations did not take part in its hearing. The Ogra received a petition from SSGCL to consider its request for the increase in proposed gas tariff, they pointed out.
The SSGC requested for an increase of Rs 9.98 per MMBTU effective from January 1, 2008 to meet the shortfall in the revenue during 2007-08 financial year, they said. The authority admitted the petition for the hearing and decided to hold a public hearing on Wednesday at Karachi to listen to the views of the industrialists and general public on the petition, they said.
"Not a single representative from the 19 leading textile associations came to attend the Ogra's hearing, as they unanimously decided to register their protest against the authority and the government attitude," said Jaweed Bilwani co-ordinator of Pakistan Apparel forum.
The hearing was boycotted by All Pakistan Textile Mills Association (APTMA), Pakistan Hosiery Manufacturers Association (PHMA), All Pakistan Textile Processing Mills Associations, Pakistan Towel Manufacturers and Exporters Association, Bedwear Exporters Association of Pakistan, Pakistan Readymade Garments Manufacturers and Exporters Association and other associations, he said. He said that it had been noticed that the regulator's decision had always been one-sided and it had also failed to implement a cut in utilities' tariffs.
"In the past twice, the Ogra has issued notification for a decrease in the gas prices, but that was not notified or notified for a few months," he added. On the other side, the notification regarding raise in tariff was implemented with immediate effect, he said.
"Ogra has never taken our recommendations into account that we presented in the past, therefore the textile sector has registered its protest against the Ogra and the government," Bilwani said. He said that gas companies were already making huge profits and they wanted raise in tariffs, which were against the existence of textile industries and common man's interest. He said despite unilateral decisions of raising the gas tariffs, the government initiated no action against the companies and the Ogra.
"We strongly reject the request of the SSGC and appeal to the Ogra to remove the cross subsidy that is being provided to the fertiliser sector," said Zubair Motiwala, an industrialist. He said that further raise in the gas tariffs would badly hurt the textile industry and would put a negative impact on exports.
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