“The five days curtailment of gas to Faisalabad industries by SNGPL was not acceptable as it would render the industrial units particularly the textile industries closed down”, stated President Faisalabad Chamber of Commerce and Industry (FCC) Mian Zahid Aslam, while talking to newsmen here Wednesday.
He apprehended that industries were already running on 30% of their installed capacity due to six hours load-shedding of electricity and this curtailment of five days a week of gas will render the industrial wheel to a complete halt. Referring to a news that provinces have already refused to release water from Tarbala and Mangla Dams during the yearly month-long canal closures in December/January , the electricity shortfall will go further from its current high of above 4000 and no gas would be available in the coming months as the supply situation deteriorates.
Giving comparative input cost available to the industries in the rival regional countries, he said that Gas and electricity prices are the highest in Pakistan Rs.485.13/ MMBTU if compared to Bangladesh 260/MMBTU and Sri Lanka Rs.330/MMBTU.
Similarly, electricity rates are 10.3 US cents per kWh in Pakistan compared to 5.4 in Bangladesh and 9.1 US cents per kWh in Sri Lanka.
He continued that textile sector is the worst hit as it would not be able to fulfill the export orders for Christmas and the New Year on the one hand while availing the EU Autonomous Trade Preference Scheme (AUTPS) 25% quota granted to Pakistan ending Dec 2012 and also affecting the exports under the Scheme in the beginning of 2013. He said that country has already lost two to three percent in GDP growth, Rs.53 billion revenue loss and affecting 400,000 jobs due to the acute shortage of electricity and gas. Such a dismal situation will further push the pressure on the external sector proceeds where Director foreign Investment (FDI) has already decreased to the historic low during the first quarter of the year, he added.
He deplored that gas was in continuous supply to one part of the country while it has been made only for two days per week in other part of the country. He urged the Government for allowing addition of more gas to the SNGPL system and also speed up work on Iran Pakistan Pipeline as a long term solution to keep the industrial wheel running.
