SSGC decision to sever gas supply to industries opposed

KARACHI: Reacting to the decision of Sui Southern Gas Company (SSGC) to cut off gas supply to industries from December 11 till second order, industrial community has expressed fear that they would not be able to complete their export and local orders.

President Federal B Area Association of Trade and Industry Haroon Shamsi said that many exporters do not have processing units.

He said that the processing units in the general industry supply the raw material to the exporting units.

It will not be possible to complete export orders on time and this is not a good omen for the economy, he said, adding that the government will be responsible for the impact of such decisions on the national economy.

Amanullah Aftab, Chairman, Pakistan Tanners Association (Southern Zone) said that the leather sector is a vital export-oriented sector of the country. He said specially the area of Chamra Mandi (Sector 7-A, Korangi Industrial Area, Karachi), which is contributing significantly to the leather sector, approximately generates 40 percent share of total exports of leather sector of Pakistan, but it is deprived for basic necessity of gas in these days.

He said that in result of severe scarcity of gas, which is most important element in this continuous process industry of the country, the export orders are becoming jeopardized due to cancellation for non-execution within the mutual agreed timeframe against export orders placed by the foreign buyers/customers. He said this would obviously not only bring negative impact for infringement to the agreement with the foreign buyers/customers but also the country will lose precious foreign exchange. He said the Government of Pakistan in general and Ministry of Gas & Petroleum in particular have already assured to all export-oriented sectors of the country including leather sector of a smooth and regular supply of gas without interruption for their facilitation in the execution of export orders

Amanullah Aftab reiterated that leather sector is continuous processing export-oriented industry of the country and the continuity of supply of gas is utmost important necessity of it, which should be ensured at all costs.

He urged the federal minister for gas & petroleum and management of SSGC to ensure supply the gas to this vital mother industry located at Korangi industrial area so that it would be able to continue the process of turning raw hides & skins into finished leather along with allied commodities with much more value addition for execution of export orders in time against the commitments to secure the precious foreign exchange for the country.

Copyright Business Recorder, 2021