MCCI opposes proposed 14pc gas tariff raise

Proposed rising of gas tariff by 14 percent from January onwards and irregular supply of gas is affecting the industry and ultimately hitting Pakistani image in overseas market as industry is losing export orders, Mian Anis A. Sheikh, President of Multan Chamber of Commerce & Industry said.
He said that our exporter and businessmen are losing export orders, getting letters of credit cancelled and this has been creating a bad image among foreign importers in the wake of irregular supply of utilities and their increasing tariffs. MCCI President said such higher tariffs are indirectly affecting to grow unemployment rate, as number of people got jobless as a result of production drop. No new units or investors are coming forward to set-up industries nor expansion in the existing industries is nearly being expected, even industries are getting closure day by day, people are getting unemployed, he added.
Sheikh said the increase in gas tariff is tolerable if gas supply made on regular basis. He further said there is already an irregular supply of gas, increasing tariffs would ultimately affect law and order situation. He said earlier power tariff became trouble for industries, then load shedding of electricity forced industries to shut down, now irregular supply of gas is also creating problems for industries to survive. "Energy is the main problem for industries, these all situations would ultimately affect law and order situation."
He said the utility issue is the result of no proper long term planning. He stated there is a large number of gas consumers, "First domestic consumption of 60 to 70mmcfd increases with the arrival of winter season, then there are captive power customers, thermal power stations and also transporters." Anis A. Sheikh said the subsidy of Compressed Natural Gas should be provided only to industrialists who create employment opportunities." A consumer affording a vehicle of Rs 1.5 million could also afford its fuel," he added. Already industries have been directed to remain closed for five days a week due to gas load shedding, now the increase in tariff would make the situation more critical, he added.