A critical shortage of natural gas accompanied by perilously low pressure is wreaking havoc on industrial production, leading to delays in export orders worth millions of US dollars and escalating the overall cost of doing business, according to distressed exporters. They are urgently calling on the government and Sui Southern Gas Company (SSGC) to ensure a consistent gas supply with a pressure of 8 psi (pound per square inch) to meet export deadlines.
Speaking to The Express Tribune, Aqeel Zawar, a prominent exporter, highlighted the critical gas pressure issue in Karachi, stating, “We pay for 8 psi, but receive only 4-6 psi, impacting plant operations significantly. This insufficient pressure hampers machinery, causing delays, affecting export orders, and increasing overall business costs. Facing crippling inflation, we risk losing competitiveness to regional countries like Bangladesh. Some exporters are considering relocating to Lahore, Sheikhupura, and Faisalabad for lower property prices, reduced water bills, and cheaper boilers, posing a threat to Karachi’s business ecosystem.”
Basheer Ghaffar, another Karachi-based exporter, echoed these concerns and urged the government to ensure proper gas supply and pressure. He highlighted the impact of gas shortages on working days and the resulting losses due to delayed export orders. Ghaffar noted that high gas and electricity tariffs, combined with extremely low pressure of 2psi or 3psi, significantly inflate utility bills for businesses.
Read PM urged to tackle gas scarcity
Hyderabad Chamber of Small Traders and Small Industry (HCSTSI), President, has appealed to Prime Minister Anwarul Haq Kakar and Minister for Petroleum, Gas, and Energy Muhammad Ali. In a recent letter, Shaikhani urged the authorities to eliminate severe gas shortages and low pressure in all industrial zones of the province. He emphasised the need for uninterrupted gas supply to industrial and commercial activities, underscoring its crucial role in bolstering Pakistan’s foreign reserves and economic improvement.
Shaikhani criticised ill-advised economic policies that hinder industrial progress despite Sindh contributing 65% to the country's total gas production. The industries in the region face complete shutdowns for two days every week due to gas shortages, severely impacting industrial and commercial activities. He stressed the imperative of ensuring uninterrupted gas supply for sustained industrial operations and addressing the soaring gas prices to foster a conducive environment for economic growth.
Published in The Express Tribune, December 29th, 2023.
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