FPCCI urges government to rationalise gas allocation

Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Vice President Azhar Majeed Sheikh has urged the government to rationalise the allocation of natural gas to minimise the gas shortage impact on the industry in the coming winter. While addressing a press conference here on Thursday, the FPCCI Vice President said the SNGPL Managing Director has already warned of severe shortage of gas to the industry in the coming winter.
The government should devise an effective policy to save the industry across the country which uses 15 percent of the total production, he said. Azhar Majeed Sheikh said the industrialists are not against the domestic consumption. He, however, suggested to the government that a campaign should be launched to discourage the use of gas for heaters and geysers. By using gas in heaters and geysers, its consumption rises by 700 mmcfd. He was of the view that this single step can help save as much gas which would be sufficient to let the industry wheel move in winter. He further said that use of CNG for over 1000 CC vehicles should be completely banned.
In a meeting with President Asif Ali Zardari about a couple of years ago, it was suggested that government should import LPG and LNG equal to gas shortage amounting to 700 mmcfd in winter to provide SNGPL and SSGPL so that they could blend it with the natural gas. This can push gas price 25 percent up which can be shared by all the consumers across the country, he maintained.
The FPCCI Vice President further said that gas remained available for 180 days to the textile industry during last year that resulted in decline in production. As a result, the industry could not meet export orders which indeed negatively impacted the country's foreign exchange earnings.
He said that Bangladesh with zero production of cotton is earning US $25 billion foreign exchange whereas Pakistan, despite production of 16 million cotton bales, is earning just $14 billion. Bangladesh progressed in textile sector only because of prudential policy with regard to use of natural resources and gave priority to the industry, he added. Azhar Majeed Sheikh urged the government to take prudent and effective steps to overcome the energy crisis for the survival of local industry.