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Industries losing Rs45b daily due to gas shortage

KARACHI:
The business community of Karachi has lamented that losses worth nearly Rs45 billion were being suffered by traders each day due to unavailability of gas to industrial units of the city.

The businessmen held a protest in front of Sui Southern Gas Company’s (SSGC) office in Karachi on Wednesday to demand restoration of gas supply.

They warned that this campaign would continue until gas was restored at normal pressure to the factories. They also said that the protest might accelerate with each passing day.

On the occasion, Businessmen Group (BMG) Chairman Zubair Motiwala, Vice Chairman Jawed Bilwani and Karachi Chamber of Commerce and Industry (KCCI) President Muhammad Idrees expressed grave concern over lack of action from the government to resolve the issue.

“This is the most pressing problem being suffered by the business and industrial community of Karachi and industrialists are suffering mammoth losses due to suspension of gas supply or low pressure of fuel,” they said.

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They expressed disappointment over the inaction and sheer negligence of the government despite various appeals and a recent press conference that highlighted the looming gas and re-gasified liquefied natural gas (RLNG) crisis being witnessed by the industries for the past over 100 days.

They said that losses of up to Rs45 billion were being suffered each day due to unavailability of gas to Karachi’s industrial units.

“Despite facing countless challenges on all fronts, the city continues to contribute more than 68% revenue to the national exchequer and holds 54% share in national exports,” the officials said. “On the other hand, 52% of exportable textile products are also produced in Karachi.”

Criticising the allocation of 211 mmcfd of gas from Sindh’s resources to the Sui Northern Gas Pipelines, Motiwala demanded that in order to revive the industrial activities of Karachi, there was a need to give Sindh its due share of gas.

“It is highly unfair to keep the industries of Karachi deprived of Sindh’s own gas resources,” he said.

Idrees said that the rising demand for gas in Balochistan during winter season was being fulfilled by SSGC alone and SNGPL had been spared from sharing the additional gas burden of the province.

They stressed that the jump in demand for gas in Balochistan should be met by SSGC and SNGPL as per the ratio of gas being received by them.

According to them, SSGC should fulfill 41% of the increase in demand of the province while SNGPL should fill the remaining gap.

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