The Lahore Chamber of Commerce and Industry on Thursday severely criticised the government for unprecedented 31 percent increase in the gas prices and 68 percent in captive power generation and termed it a big blow to an already hard pressed industry.
Lahore Chamber President Mohammad Ali Mian in a statement said that if the decision was not withdrawn, the industrialists would be left with no option but to close down their industrial units. The gas and power are basic raw material for the industry and hike in their prices would not only increase cost of doing business but would also make Pakistani merchandise more uncompetitive in the global market at a time when the exports are already on the decline and the trade deficit is on rising trend, he said.
He said the industry is already on the verge of closure due to hike in the prices of petroleum products, raise in GST and imposition of 10 per cent withholding tax on electricity and now the decision to increase the gas tariff for general industry and for captive power generation of export oriented industry above tariff being provided to the IPPs amount to a dedicated approach to close the local manufacturing sector and turn Pakistan into a trading nation.
He said that 70-80 percent textile and other large scale manufacturing units have their own captive power generation and the recent measure would force them to become sick units besides creating a new generation of unemployed workforce.
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