Despite competitive quality and price, Pakistan businessmen were unable to make delivery on time due to discriminatory gas suspension by the government for Punjab industries which has dealt a death knell for export productivity.
Asking the Federal Minister for Petroleum and Natural Resources Dr Asim Hussain to honour his commitment for increasing gas supply to Punjab Industry for three days a week, the President Lahore Chamber of Commerce and Industry (LCCI) Irfan Qaiser Sheikh said it will help arrest Rs100 billion monthly loss to the economy and ensure jobs 400,000 daily wagers.
He reminded Dr Asim’s promise to the industry in Punjab on January 27 in the presence of Chief Minister Punjab Mian Shahbaz Sharif at Chief Minister House that the three day per week gas supply would be restored in the month of February, but the economy has hit the rock bottom only because of federal minister’s failure to keep his word.
How can an industrialist run his industry when he is paying a markup of 365 days and getting gas for around hundred days only as last year the industry in Punjab was given gas for only 170 days. “It is not only the industry that was suffering massively, but the government was also a loser on many counts.”
Irfan Qaiser Sheikh said around 40 per cent of the industrial units in Punjab run on gas and gas suspension means no production by almost half of the industry and a loss of millions of rupees to the exchequer.
The ‘discriminatory attitude’ of the government was not only denting its goodwill and reputation, but had also put a question mark on its ability to manage and govern things. “It was a death knell for export-based industry and productivity.”
How would the industry be able to manage export orders worth millions of dollars when there is no gas? What about millions of daily wagers who have a single source of income? And above all, he added, how would the government convince both the local and foreign investors for investment when it is unable to manage the supply of gas to the existing industrial units. “Instead of coming up with some sort of relief package, the industry is being pushed to the wall. The gas suspension is tantamount to throttling the industry to death.”
Despite competitive quality and price, Pakistan exporters were unable to make delivery on time, he added. He said it seemed that some elements in the gas department were hatching conspiracies against the government to defame it.
LCCI President said the businessmen were unable to understand why the business community was not taken into confidence over industry-related issues. If SNGPL was facing some supply related issues they must bring them to the notice of real stakeholders, well ahead of time.
Giving a breakup, LCCI President said the industry was denied gas for 77 days in 2008-09, 100 days in 2009-10, while in 2010-11 it was given gas for only 170 days. “An unprecedented hike in power tariff had made the scenario more complex and complicated. To run the industry on alternative fuel, including diesel and furnace oil is not a viable proposition.”
The shortage of gas is not the only issue; its improper distribution also remains a cause of worry. “It would have taken about two years to set up a system for LNG supply, had the government accepted the LCCI proposal a couple years ago.
LCCI asks Dr Asim to honour his commitment over gas supply
