One-day closure of factories, CNG stations: Gilani may force traders to swallow the bitter pill

Prime Minister Syed Yousuf Raza Gilani may force industrialists and CNG station owners to swallow the bitter pill pertaining to closure of CNG stations and industrial units one-day a week to divert 150 mmcfd gas to power sector as they are resisting the proposal saying that it would hurt their businesses, Business Recorder has learnt.
Sources said the sub group on gas curtailment held a meeting on Wednesday but reached nowhere on the proposal of closing CNG stations and industrial units for one-day a week to save gas for power sector. The sub group will meet again on Thursday (April 22) to convince stakeholders for closure of CNG stations and industrial units.
Sources said that textile industry representatives who attended the meeting of sub group on Wednesday opposed the proposals to curtail gas supply to industrial units for one-day a week. They were of the view that textile industry would have to use oil, which was three to four times costly as compared to gas, which would push up the cost of doing business.
"Textile industry is backbone of the country which brings the foreign exchange by exporting textile products," sources quoted the textile industry representatives as saying. They said that gas load management plan would result in increasing cost of the textile products that would make them uncompetitive in the international market.
Sources said the country was facing over 5000 MW power shortfall and 150 mmcfd gas would cause production of 400 MW electricity. The Ministry of Water and Power wants 350 mmcfd additional gas supply to power sector to increase the power generation.
All Pakistan CNG Association has also opposed the curtailment of gas supply from CNG sector saying that the country would be having 140 MW power by curtailing gas from CNG sector which is 2 percent of total 5500 MW shortfall. Meanwhile, All Pakistan CNG Association Chairman Ghiyas Abdullah Paracha in a statement issued on Wednesday said the gas loadshedding to the CNG sector will only increase the problems for public and will not help decrease electricity loadshedding because the CNG sector uses only 7 percent of total gas which can generate only 2 percent electricity.
He told newsmen that 2.6 million vehicles are running on CNG and about 25 million people will be directly affected and almost one million CNG dedicated vehicles will be stopped. It will cause huge problem for public and government as well. He said the increase in transport fare will create a new ugly situation.
Paracha told media persons that we have briefed the government officials that CNG sector is facing huge losses due to electricity loadshedding and unannounced increase in gas tariff and this new decision will have worst affects on CNG sector and the economy.
He said we suggested the government to take gas from higher gas consumption sectors, which can help generate sufficient electricity. He said use of gas generators is banned in CNG stations while industrial sector is continuously using heavy gas turbines and generators. Paracha appealed to Prime Minister Yusuf Raza Gilani to exempt CNG sector from gas loadshedding to provide cheaper means of travel and goods transportation.