HYDERABAD: President of the Hyderabad Chamber of Small Traders and Small Industry, (HCST&SI) Muhammad Farooq Shaikhani, has strongly criticized the Economic Coordination Committee’s decision to implement a 65% increase in gas prices. He deemed it disastrous for the industries and questioned the moral justification of the caretaker federal government, especially after the 2024 elections.
Shaikhani highlighted that the additional burden of Rs242 billion imposed on consumers is solely to comply with IMF conditions, emphasizing the adverse impact on businesses and the public. The revised gas prices, reaching Rs100 per MMBTU for protected consumers, Rs300 per MMBTU for non-protected consumers and Rs900 per MMBTU for bulk consumers, are seen as detrimental to the already struggling industries in Pakistan.
The President expressed deep concern for Hyderabad’s renowned glass bangle industry, which had already faced challenges such as gas load shedding and previous price hikes, leading to the closure of 80% of factories and unemployment for over two hundred thousand individuals. With the latest 65% increase, Shaikhani fears that the remaining factories will also shut down exacerbating unemployment in Hyderabad.
Shaikhani criticized the caretaker government’s plan to meet IMF conditions, stating that it will result in the closure of industries, employee layoffs, a potential rise in street crimes and bankruptcy of manufacturing units, all negatively impacting the country’s economy.
He urged leaders and political parties to reconsider the decision, emphasizing that in developed countries, utilities are not exploited for economic gains.
Shaikhani asserted that the government’s focus should be on providing essential facilities to promote industry growth, rather than escalating gas and electricity prices without proper planning.
In conclusion, President Muhammad Farooq Shaikhani called upon all political leaders and rulers to withdraw the gas price increase promptly to restore confidence within the business community and encourage collaborative efforts for stabilizing Pakistan’s economy.
Copyright Business Recorder, 2024