Hyderabad Chamber of Small Traders and Small Industry (HCSTSI) President Muhammad Farooq Shaikhani has hit out at the Economic Coordination Committee (ECC) for its decision to make a massive increase of 65% in gas tariffs.
He appealed to all political leaders and the country’s rulers to withdraw the gas price hike promptly to restore confidence of the business community and encourage collaborative efforts for stabilising the national economy. He urged them to reconsider the decision, pointing out that in developed countries, utilities were not exploited for economic gains.
He asserted that the government’s focus should be on providing essential facilities to foster industrial growth, rather than jacking up gas and electricity tariffs without proper planning. He deemed it disastrous for industries and questioned the moral justification of the caretaker government, especially after February 2024 elections.
He said the additional burden of Rs242 billion imposed on consumers was solely aimed at complying with IMF’s conditions, resulting in an adverse impact on businesses and the public.
Read ECC approves increase in gas prices
The revised gas prices, reaching Rs100 per million British thermal units (mmBtu) for the protected consumers, Rs300 per mmBtu for non-protected consumers and Rs900 per mmBtu for bulk consumers, are seen as detrimental to the already struggling industries in the country.
He said 80% of factories in Hyderabad’s renowned glass bangle industry had already been closed due to high tariffs and gas outages, which left thousands unemployed.
With the latest 65% increase, Shaikhani feared that the remaining factories would also be shut down, adding to the number of jobless people in the Hyderabad region.
He slammed the caretaker government’s plan to meet IMF’s conditions, stating that it would result in the closure of industries, worker layoffs, rise in street crimes and bankruptcy of manufacturing units, all of which would negatively impact the economy.
Published in The Express Tribune, February 16th, 2024.
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