LCCI disagrees with proposed rise in gas tariff

The Lahore Chamber of Commerce and Industry (LCCI) on Tuesday urged the government to shun any increase in gas tariff since it could jack up cost of business manifold and oust the export-oriented industries from the international export market.
LCCI President Ijaz A Mumtaz in a press statement said that such anti-business acts of the Oil and Gas Regulatory Authority (OGRA) could hamper the growth of manufacturing sector that was already facing several internal and external challenges. He said the proposed raise would create multiple problems for industrialists as they have to bear heavy loss while fulfilling their export commitments.
He said government functionaries or ministers always vowed to take the private sector on board on all future decisions but they hardly bothered to consult the chamber or any other sector-specific trade association while jacking up the gas tariff. He said the impact of reported increase from April 1 would be much bigger than the expectation of the government who should avoid any decision keeping in view the economic scenario in the country.
He said the increase would put extra burden on the cash-starved industry. "By making such decisions, the OGRA would never do any service to the industry but widen the gap between the private sector and the government." He went on to say said at a time when all the governments in the world were facilitating their respective private sectors, the situation in Pakistan was the other way round and various government departments were tightening noose around the private sector.
While quoting the example of the textile sector, he said: "It is one of the most value-added and export-oriented sectors in Pakistan which accounts for more than 60 percent of total exports of the country. Up to 95 per cent of its inputs are locally produced and by making energy out of their reach, the government is in fact curbing the use of local inputs." He said even the slightest raise in the cost of production, at this critical juncture, would, therefore, spell doom and oust Pakistani merchandise from the international export market which would deprive the national exchequer of much-needed valuable foreign exchange to the tune of billions of dollars.