Karachi Chamber of Commerce & Industry (KCCI) has rejected the recent news by ECC (Economic Coordination Committee) to increase tariffs, gas outages for industry and CNG sector while terming it one-sided.
In a joint statement on Friday KCCI President Muhammad Saeed Shafiq, Senior Vice President Talat Mahmood, Vice President Junaid Esmail Makda, Chairman Public Sector Utilities, Power & Gas Sub-committee Dr. Qazi Ahmed Kamal, stated that the chamber views the recent news regarding the escalation of prices for the various categories of end users, the proposed gas load shedding and the possible curtailment of gas to the industries and CNG sector in Sindh as detrimental to various stake holders.
Despite ample reserves and gas availability in the province such steps by authorities can have serious repercussions on the industry.
They suggested that an even load shedding time table ought to be introduced across the country.
They cautioned that the decision would severely harm the economy of Sindh which is the source of more than 60 per cent tax revenue and demanded that the business community of Sindh must be made part of the negotiations. They also warned that the situation arising out of gas outages will lead to colossal collapse in commitment to export orders, flight of capital, huge labour layoffs, and worsening of law and order situation in Karachi along with the decline in the revenue of the government.
They said that on one side the government is contemplating to increase targets for nominal growth and on the other hand its harsh decisions to increase utility tariffs and gas and power outages are posing severe threats for achieving the said target.
At present, the country is going through a very serious economic crisis in terms of escalating cost of production and manufacturing based on continuous rise of utility prices. They categorically rejected this plan in absolute terms and stressed that under article 158 of the constitution of Pakistan, issue of the availability and use of gas has been specifically settled once and for all and any changes in it can only be done through the legal process of passing a bill in the National Assembly.
The matter is under the court and sub-judice at this point in time. Any action contrary to the status-quo before the judgment of the Supreme Court will tantamount to a contempt of court proceeding. They stated that the KCCI will not accept any holidays of gas supplies to its affiliated 5 industrial zones and industries along with CNG stations in Karachi. They emphasised that in a total national output of 3800 MMCFD approximately only 37 per cent approximately i.e. 1200 MMCFD is being consumed by Sindh and Balochistan.
Today even out of this 37 per cent Sindh is getting 25 per cent less whereas the shortage in SNGPL (Punjab) is 15 per cent. KCCI expressed its interest in knowing why there is a deficit of 900 MMCFD when the local province SSGC supply is around 1105 MMCFD and that of SNGPL stands at 1800 MMCFD.
They articulated that the plan of the government to pass on the savings of gas to the KESC will not be possible as no GSA (General Sales Agreement) exists between the SSGC and KESC. With the absence of such an accord the possibility of benefitting the KESC will hit a legal loop hole and cannot materialise. “The KCCI will not be able to stop the ensuing agitation and especially not a genuine one by its members of the industry, commerce and the CNG. The government must take the stakeholders into confidence in this regard.”
