ISLAMABAD: Karachi’s business community and industrialists have sought caretaker prime minister’s help for resolution of the issue of industries and are waiting for fulfilment of commitments made by the caretaker Minister for Power and Petroleum, Muhammad Ali with respect to electricity tariff issues.
In a letter, President KCCI, Iftikhar Ahmed Sheikh, reminded the caretaker minister that on November 23, 2023 a meeting was held under his chairmanship, where discussion took place regarding incremental consumption package for K-Electric’s industrial consumers.
Following the meeting, a committee was constituted comprising, Tanveer Ahmed Barry, Vice President KCCI, Mahfooz Bhatti, Joint Secretary (Power Finance) Power Division, Sajid Akram (NEPRA), now OSD, associated with caretaker minister for assistance on power sector issues, Abu Bakar, Amerli Steel and representative of K-Electric.
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According to President KCCI, a subsequent meeting was convened on November 27, 2023 at Nepra headquarters wherein issues related to tariff came under discussion.
President KCCI requested the caretaker minister that in the light of subsequent developments, to instruct Joint Secretary, Mehfooz Bhatti and Sajid Akram to visit the KCCI for a meeting for the finalization of pertinent matters.
Earlier, a similar letter was written by Vice President KCCI, Tanveer Ahmed Barry on December 14, 2023, which also remained unanswered. On December 23, 2023, President KCCI, Iftikhar Sheikh and Chairman Businessmen Group, Zubair Motiwala wrote to caretaker Prime Minister Anwaar-ul-Haq, citing letter No NG(1)-7(189)/23-Vol-V of Petroleum Division dated December 14, 2023. They observed that they found it very surprising as its facts/ contents were incorrect as it claimed that the blend of natural gas and RLNG for industries and captive power plants was discussed in the presence of caretaker Prime Minister at a meeting held on December 11, 2023. This is incorrect as it was discussed after the PM left the meeting but it appears that a false impression is being given that this was also discussed in the caretaker PM’s presence.
Both leaders of business community and industry, in their joint letter claimed that during the presence of caretaker prime minister, the exorbitant high gas tariffs were discussed with a request that the caretaker prime minister issues directives to bring the gas tariff down to Rs 1350 per MMBTU as prescribed by the OGRA while blended gas issue was discussed after the Prime Minister left the meeting.
In this scenario, the SSGC has taken the stance by issuing a circular dated December 21, 2023 wherein the ministry’s letter has been referred to but it was beyond business community’s understanding as the said letter’s contents do not categorically refer to any decision taken on the blended gas.
“We are already contesting on the gas tariffs and now they want to add over and above the price by providing RLNG blended gas to industries in Sindh which we simply cannot absorb,” said both the business community leaders in their joint letter.
The letter particularly mentioned that Sindh produces 71 percent of gas and under article 158 of the Constitution , Sindh province has the first right to use its own gas which was also recently underscored by the caretaker chief minister Sindh in his letter of December 18, 2023, sent to caretaker prime minister wherein federal government has been urged to allocate Sindh its rightful share of natural gas under Article 158 of the Constitution, so that the industrial and business activities of the province may be carried out smoothly.
“We fail to understand that although, on one hand, the policy of government is to enhance the exports but on the other, you (PM) can actually see the repercussions of raising the energy tariffs which have resulted in bringing the textile exports down by 6.5 per cent to $ 6.88 billion during July-November 2023. We fear further downslide in exports due to impact of recent gas prices and, you can easily forecast the gloomy fate of country’s exports if RLNG cost is further added to gas tariff,” so stated the joint letter to caretaker prime minister.
They further claimed that Karachi bears different dynamics where industries can only be run on gas unlike other areas of upcountry where agro-mass, agro-waste and biomass etc. are used as fuel. It is also a well-known fact that sufficient amount of water including good-quality subsoil water is also available upcountry. Both these factors give an advantage to industries upcountry but these are not available in Karachi. The president KCCI and chairman Businessmen Group has requested caretaker prime minister to look into this serious matter and help Karachi industries which were being dealt poorly regardless of the fact that their share in the country’s exports is around 54 percent.
Copyright Business Recorder, 2024
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