Pakistan economy is proving a house of cards in the face of worsening gas scarcity, putting the textile sector, power sector and the CNG stations at loggerheads over utilisation of available quantity of gas while leaving the economic managers in a difficult situation.
"It is like 'aik anaar so baimar', as the textile sector, the power sector and CNG stations owners are simultaneously pursuing the government for the available quantity of gas in the country. The gas pressure gets badly affected with the start of winter every year. However, this year the situation has become quite complex amidst unprecedented electricity shortage in the country.
The textile industry circles are of the view that the consumption need of both the textile and CNG stations is equal to 180 mmcfd. According to them, the textile industry is ready to pay one-month profits of the CNG stations in case the CNG owners agree to let the textile utilise 180 mmcfd.
While terming it an out-of-box solution, textile millers said some 1500 CNG stations in Punjab would be earning a profit of Rs 100,000 per month and total profit amount of 1500 CNG stations stands around Rs 150 million. The textile industry, they said, would pledge to pay this amount to CNG stations owners provided they guarantee to shut their stations for one month.
Gas supply to CNG stations is already in doldrums amid strong signals from government circles of bringing gas price equivalent to petrol price to encourage vehicles shifting on petrol during the period of gas shortage.
Sources in the textile industry told Business Recorder that the Advisor to Prime Minister on Finance and Economic Affairs Shaukat Tarin has already extended a positive node on the point, followed by latest developments with increase in gas prices. The CNG stations owners have also smelled a rat in the government policy and they have threatened a countrywide strike to avert any such move.
The textile industry, on the other hand, is looking determined to resolve the issues once and for all and the All Pakistan Textile Mills Association (Aptma) has called an Extraordinary General Meeting on January 9 to mull over an industry-wide mills closure strategy in case the government fails to ensure smooth supply of gas to their units.
Interestingly, in a situation where both the textile industry and CNG stations owners association are showing their teeth to the government, both the President and the Prime Minister are cutting a sorry figure to the Ministry of Water and Power for their October 2008 commitment of uninterrupted supply of 150 mmcfd gas to thermal generation units. If this quantity of gas is ensured to thermal units, about 600 MW electricity can be added to the system directly. A notification was also issued last year for uninterrupted supply of gas to thermal units.
However, this notification fizzled out in thin air with the start of gas loadshedding and about 50 percent thermal units are virtually closed down, brining down power generation from actual capacity of 11000 MW to present generation of about 7000 MW. The power sector is still awaiting implementation of the notification, as the officials are of the view that the entry of 150 mmcfd gas to the system would only overcome unprecedented power shortage in the country.
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