Lahore Chamber of Commerce and Industry has urged the government to remove taxes on furnace oil to ensure relief to the industry and industrialists who are under tremendous pressure because of acute gas shortage and expensive alternate fuels like the oil.
LCCI President, Irfan Qaiser Sheikh, said in a statement on Thursday that the industry is the biggest job provider and its closure would not only create social unrest but would also deprive government of the much needed revenue to run its affairs. Therefore, it is the duty of the government to ensure availability of cheaper alternate fuel if it is unable to provide gas. "The rise in number of unemployed would definitely give air to anti-government sentiments because industry closure would throw millions of industrial workers out of job."
He urged the government to immediately take concrete measure to avert industrial closures and resultant massive layoffs. "How can the industry afford to pay the all-time high mark up of 16 per cent when there is no gas for the industry," he questioned.
Sheikh highlighted that around 40 percent of the industrial units in Punjab run on gas and the suspension means no production by almost half of the industry and a loss of millions of rupees to the exchequer. There is a global phenomenon that industry is given top priority whereas in Pakistan it comes to the least and other sectors are given priority, he lamented.
He also urged the government to get obsolete gas geysers and heaters replaced with latest solar geysers and heaters to ensure gas to the industry. The discriminatory attitude of the government is not only denting its goodwill and reputation but had also put a question mark on its ability to manage and govern things. He said that the industrial units in Sindh are getting an almost uninterrupted supply except a two to three hour load-shedding.
Terming gas suspension plan a death knell for export-based industry and productivity, the LCCI President sought the Prime Minister's intervention and help for a regular supply of gas to the industry in Punjab or removal of taxes on furnace oil. How the industry would be able to manage export orders worth millions of dollars when there is no gas? What about thousands of daily wagers that have a single source of income? And above all, he added, how the government would convince both the local and foreign investors for investment when it is unable to manage the supply of gas to existing industrial units.
LCCI president said that gas suspension decision has sent a very negative signal to the foreign buyers. "Instead of coming up with some sort of relief package, the industry is being pushed to the wall. Gas suspension for three months is tantamount to throttling the industry to death." Giving a break-up, the LCCI President said the industry is denied gas for 77 days in 2008-09, 100 days in 2009-10 and 160 days in 2010-11. "Over 72 per cent hike in power tariff in the last five months had made the scenario more complex and complicated. To run the industry on alternative fuel, including diesel and furnace oil at their existing price is not a viable proposition."
He observed that the shortage of gas is not the only issue, its improper distribution also remains a cause of worry. The chamber had sent a SOS call to the federal government on continuous energy disruptions as gas and electricity are prerequisite for smooth functioning during the winter season. Government should divert all new-found gas to the network of Sui Northern Gas Pipeline Limited network.
Expeditious import of 500 million cubic feet gas per day LNG would considerably overcome the gas shortage for the industry. Despite competitive quality and price, Pakistan exporters are unable to make delivery on time. It seems that some elements in the Gas department were hatching conspiracies against the government to defame it, he added.
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