The business community has warned that it would be forced to stop making payment of federal and provincial levies if discriminatory attitude regarding supply of gas to Punjab province is not ended.
Office-bearers of 10 leading chambers of the province and a number of industrial associations held an emergency meeting on the issue at Lahore Chamber of Commerce and Industry and resolved to take harsh steps against the government in the next meeting, including stopping payment of taxes.
The chambers and industrial associations also observed that industries in the province were moving towards total default, which would force the owners to opt massive layoffs. They also authorised the LCCI to take whatever extreme step it deems fit if the government fails to end discrimination in gas supply with the province, and ensure countrywide equitable gas load shedding, within a week, while the next meeting will be held in Gujranwala.
LCCI President Shahzad Ali presided over the meeting. Chairman of National Assembly Standing Committee on Railways Ayaz Sadiq, President of Gujranwala Chamber of Commerce and Industry Sarwat Ikram, President of Okara Chamber of Commerce and Industry Muhammad Iqbal Shahid, President of Sheikhupura Chamber of Commerce and Industry Tariq Iqbal Mughal, Vice President of Gujrat Chamber of Commerce and Industry Nasir Butt, M Anwar of Sialkot Chamber of Commerce, LCCI former presidents Muhammad Ashraf, Iftikhar Ali, Anjum Nisar, Shahid Hassan, Muhammad Ali, Muzffar Ali, and former Vice President Shafqat Saeed Piracha were also present on the occasion.
The representatives of different industrial associations, including All Pakistan Textile Mills Association, All Pakistan Textile Processing Mills Association, Pakistan Steel Re-Rolling Mills, Pakistan Steel Melters Association, Pakistan Readymade Garments Manufacturers and Exporters Association also attended the meeting.
Shahzad urged all chambers and associations to forward their doable proposals to the Lahore Chamber so that the same could be presented to the government for implementation.
He said that it was very unfortunate that the stakeholders were always kept away from trade and industry-related policy-making. He stressed need for taking stakeholders on board while taking economy-related decisions. He said that the gas shortage was not only hitting the trade and industry but it was also creating law and order situation as the unemployment graph was fast going up with every passing day.
The LCCI president said that a mechanism should be evolved to stop pilferage of gas that is now more than seven percent as compared to yesteryear's when it was only five percent. He said that the project to import LNG was still in the air for one or the other reason. Work on this project should be expedited without any further delay as the industrialists of the country were fast heading towards default.
The Punjab chambers and associations, while assuring their fullest support to Lahore Chamber of Commerce and Industry, deplored the non-serious attitude of the government towards the gas crisis. They asked the government to come up with a schedule for load management applicable in all parts of the country. They said that gas load shedding in Punjab alone was not only unjustified but was also making the goods uncompetitive even in the domestic market.
They expressed hope that the government would resort to fair practices in this regard within a week. They warned of protests and agitation if their demands were not met. They, however, made it clear that final decision in this regard would be taken by a committee formed by the chambers after the deadline of one week expires.
The trade and industry leaders said that their businesses were badly suffering due to acute gas shortage which has worsened by the cold treatment it gets from the SNGPL on its priority list though its counterpart, the Sui Southern Gas Company in Sindh gives priority to industry over all other consumers.
Gas supply to the industry of Punjab remained suspended for 40 days during six months from April 15 to October 15, 2010 because of 24 days' closure on account of one day a week suspension of gas as per decision of the Energy Summit held in April this year. The gas supply was cut for another 16 days on different occasions during the period because of the closure of different gas fields for annual maintenance.
Industries in Sindh and KP were not subjected to this weekly closure, and the gas shortage hit Punjab exclusively because the decisions taken at the Energy Summit, chaired by Prime Minister Gilani, were not implemented in other provinces though it was decided that the gas shortage would be shared equally.
Entrepreneurs in Sindh and KP got the rationing of gas supply suspended in their respective high courts on the ground that under the 18th Amendment they had the first right to use their natural resources.
They said that in view of acute gas shortage, the industries should have been given priority over other consumers because they were providing employment to millions of people. "Every time that industries are closed due to suspension of gas supplies, hundreds of thousands of workers lose their daily wages," they said, adding that the decline in production also resulted in permanently reducing the workforce. They said that rates of manufactured products increased due to the shortage, courtesy of low production. The increase in prices was inevitable as producing the same products by generating power through alternative fuel increased the cost of production substantially. It was also decided in the meeting that all chambers would invite their respective MNAs for briefing on gas crisis.
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