Businessmen for restoration of full gas pressure

Lament it is acting as obstacle to production of export orders

Representatives of various industrial and trade bodies have called for immediate restoration of gas supply along with required pressure because low gas pressure is an obstacle to the industry in meeting production target for the exportable merchandise.

Businessmen from the SITE Industrial Area, North Karachi Industrial Area, Korangi Industrial Area and others reported that gas pressure was falling to almost zero.

In a statement on Friday, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Mian Anjum Nisar said businesses and industries were passing through a destructive phase as the cost of inputs had soared in the past months while infrastructure condition deteriorated. “After bearing the brunt of Covid-19, our export industry was recovering fast but due to gas supply hurdles, followed by electricity shutdown, the production of export goods has faced a 30% drop,” he said.

Nisar pointed out that no reason was being given for the low supply of gas to the industry as traders continued to receive just 350 million cubic feet per day (mmcfd) against total demand for 1,450 mmcfd.

The official added that Pakistan possessed LNG import capacity of 1,200 mmcfd. Engro Elengy and Pakistan GasPort imported 600 mmcfd each.

At present, 300 mmcfd of unutilised capacity is available at Pakistan GasPort’s LNG terminal, he pointed out. “The government should immediately arrange the import of four additional LNG cargoes every month to ensure that the industry gets the required gas,” he said.

Talking to The Express Tribune, Pakistan Hosiery Manufacturers and Exporters Association (PHMA) Chief Coordinator Jawed Bilwani said in the past many weeks, the textile sector had experienced constant gas load-shedding.

He added that during this time, gas supply turned better only for three days. “It is ironic that the textile export industry of Karachi, which contributes over 50% to the national textile exports, is starving for the most essential raw material,” he said.

Bilwani lamented that the management of SSGC had failed to respond to complaints lodged by the industry in the past three months.

Korangi Association of Trade and Industry (KATI) President Saleemuz Zaman said the industrial sector was going through its toughest time due to low gas pressure coupled with financial hardships emerging from the Covid-19 pandemic.

He urged PM Imran Khan for the reversal of decision taken by the ECC to collect the outstanding dues of gas infrastructure development cess (GIDC).

“There is a shortage of 150 mmcfd of gas from the supply side due to which problem is being faced by all consumers,” said an SSGC official. “Domestic consumers are our first priority; we manage our load according to that.”

Published in The Express Tribune, October 3^rd, 2020.

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