FCCI president blames government for declining exports and ruining sector. PHOTO: INP
FAISALABAD: Increase in gas tariff right after the enforcement of GIDC is highly detrimental for the industry and would precipitate unemployment in the country, said Faisalabad Chamber of Commerce and Industry (FCCI) President Ashraf Rizwan.
“Oil and Gas Regulatory Authority (Ogra) has issued a notification in which the prices for domestic consumers have increased up to 3.8%, for commercial consumers 9.9%, while for the industry this increase is 23%. This clearly indicates that the industry is not a priority for the government and it is actually paving way for its spontaneous death,” said Ashraf.
Quoting export figures of last July, he said that even the 12% decrease in exports failed to get the government’s attention to take immediate remedial measures. “The industry sector is confronted with multifarious problems and the energy crisis has been topping them all since the past few years.”
Presenting the comparative statement of electricity and gas prices in regional countries, Ashraf said, “In India, the electricity is available at 13 cents per unit, in Bangladesh 9 cents/unit, while here we are getting it at 16 cents per unit. As for gas, in India, it is available at $4.66 per mmbtu, in Bangladesh at $1.86 mmbtu and in Pakistan it is $6.0 per mmbtu.”
“By adding the GIDC charges, the increase will be to the tune of 27%,” he added.
He said that Pakistani products, due to high cost of production, are uncompetitive when compared to regional countries. “Even in our domestic market, we are unable to complete with India and China,” he said.
Published in The Express Tribune, September 3rd, 2015.
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