LAHORE: In a recent meeting with print and electronic media representatives, Mian Rashid Iqbal, President of the Multan Chamber of Commerce and Industry, highlighted the dire consequences of the recent increase in gas prices for captive power plants.

According to Iqbal, the surge in gas prices has already forced the closure of 160 out of 400 units in the textile sector, leaving over five lakh workers unemployed.

The hike, approved by the Oil and Gas Regulatory Authority (OGRA), saw gas tariffs for captive power plants soar from 2400 to 2750 per mmbtu. This marks the third significant increase in gas prices within a year, a move deemed "completely unfair" by Iqbal. He estimated that the increased prices would burden gas consumers with an additional one hundred billion rupees.

Moreover, Iqbal warned that the rise in gas prices would strip Pakistan's textile industry of its competitive edge in international markets, resulting in a decline in foreign exchange earnings and domestic exports. He said that Pakistan already faces higher taxes, gas, oil, and electricity prices, as well as interest rates compared to its regional counterparts.

To salvage the industrial sector, Iqbal urged for a reduction in gas, oil, and electricity prices, alongside lower interest rates and the elimination of unnecessary taxes. Without such measures, he cautioned of further decline in competitiveness and economic repercussions for the country.

Copyright Business Recorder, 2024