KCCI implores PM to arrange gas before winter
A view shows gas wells at Bovanenkovo gas field owned by Gazprom on the Arctic Yamal peninsula, Russia May 21, 2019. PHOTO: REUTERS/FILE
Industrialists are concerned that the government has not made adequate arrangements for gas supply amid the impending winter.
The Karachi Chamber of Commerce and Industry (KCCI) has written a letter to Prime Minister Shehbaz Sharif saying that the winter season this year is expected to be harsher due to the continued effects of climate change. This would, thus, require an extraordinary plan of action to deal with the anticipated gas crisis. Unfortunately, so far, no measures have been taken by the government to avert the gas crisis.
KCCI President, Muhammad Idrees stated that, “If this pressing problem is not given due attention this year, industries will be compelled to either completely shut down their units and move somewhere else, or limit their production according to the gas supply. The relocation of industries and capital flight from the country will have serious repercussions on the overall economy as well as on exports.”
Speaking to the Express Tribune, Ahsan Mehanti, CEO of Arif Habib Commodities said, “The government has not shared plans to avert the gas crisis. Gas prices are already surging and the winter season is expected to be even worse for industries due to climate change.”
Mustafa Mustansir, the Head of Research at Taurus Securities told the Express Tribune that, “Despite some correction in oil prices, natural gas prices have remained elevated globally and are expected to remain so during the winter as well.” He added that this would make it even more difficult for Pakistan to procure RLNG.
“With the soaring LNG prices and shortage of supplies globally, the government cannot do much to avert the gas crisis in winters,” noted Tahir Abbas, Head of Research at Arif Habib Limited (AHL). “However, the government should pursue arrangements of long-term LNG contracts with Qatar along with energy conservation policies on the national level,” he said.
In their letter, KCCI said that “It is highly unfair to shift the entire burden of gas shortages on the shoulders of industries in Karachi only. Despite an extremely challenging environment and many other odds, industries in Karachi continue to contribute over 68% revenue to the national exchequer.”
Published in The Express Tribune, October 2nd, 2022.
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