Cut in gas supply: industrialists, traders concerned at government's proposal

26 Jun, 2012

Industrialist and traders have expressed serious concern over government's proposal to suspend gas supply to industries and CNG stations for two days in a week and divert it to Punjab. They also expressed concerns over the proposal of cutting power supply from Jamshoro to Karachi and added that it would have negative impact on the economic activities in Karachi.
They said the proposal to withdraw gas supply to trade and industry of Karachi would force the business and industrial community to act against the Sui Southern Gas Company (SSGC) and the Federal Government under Article 158 of the Constitution of Pakistan. They said that the industry was already facing severe crisis and increased electricity tariffs and high prices of petroleum at this critical juncture would squeeze the liquidity.
Opposing the move to suspend gas supply to industries and CNG stations for two days in a week, they said it would hamper working schedules, reduce production capacity of the industry with less export earnings, and may hit 32 percent daily wagers. Chairman Korangi Association of Trade and Industry (KATI), Ehtishamuddin said that the country was passing through difficult times of its history when the injured economy due to manifold internal and external problems was demanding to work 365 days in year for its recovery.
He strongly opposed the proposed cut of gas supply for an additional day and cut of 300 megawatts power supply from Jamshoro to Karachi and said the same must not be done while penalising the commerce and industry and ultimately this will severely impede the business activities leading to decline in government's revenue and economic instability. He said that the industry wanted seven-day working to meet the export and local orders whereas the government moving in other direction.
President, Karachi Chamber of Commerce and Industry (KCCI), Mian Abrar Ahmad said that the Federal Government was closing Karachi for two days in week, which was not acceptable. The KCCI strongly rejects the proposal of the federal government in totality as it will not only ruin the trade and industry of Karachi which generates 68 percent revenue for the national exchequer and handles 98 percent ports activities for the country, therefore, any proposal to withdraw gas supply to trade and industry of Karachi would be rejected and would force the business and industrial community in general and Karachi Chamber of Commerce & Industry in particular to act against the Sui Southern Gas Company (SSGC) and the Federal Government as per Article 158 of the Constitution of Pakistan.
Likewise, any attempt to withdraw 300 megawatts from Jamshoro supply out of 650 megawatts would not be acceptable under any circumstances. President KCCI stated, "We also believe this is a deliberate and unconstitutional act not only to ruin the Karachi's trade and industry but also to bring the industry at halt resulting in discontinuation of production and unemployment which will ultimately create unrest on the streets of Karachi further aggravating already fragile law and order situation in the city." He further stated, "We also believe that Karachi is discriminated as no action of withdrawal of gas and electricity is initiated in Khyber Pakhtunkhwa and Balochistan provinces.
Chairman, Federal B Area Association of Trade and Industry (FBAATI), Masroor Alvi maintained that the proposal if implemented would affect industrial sector especially the textile processing and manufacturers, already hit by high input costs and weak Pak rupee against dollar. He said that the industrial sector was already passing through a difficult time and facing many serious difficulties including high cost of production, completing orders on time, meeting export commitments and now suspension of gas for another day and cut in power supply would be disastrous for the economy.

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