ISLAMABAD (December 27 2006): In its third round, the Sui Northern Gas Pipelines Limited (SNGPL) has disconnected gas supply to dozens of export-oriented industrial units, giving a clear message that load shedding was for all industrial sectors, as it believes in indiscrimination.

Disconnection of gas of export-oriented industrial units also negates Petroleum Secretary, Ahmed Waqar, who is on record saying that "The government has put in place a load management system, and gas of export-oriented units will not be disconnected during this winter season".

Business Recorder on Tuesday was provided the list of some of the industrial units, which are 100 percent export-oriented but the SNGPL has disconnected their gas between December 22 and 25.

These units include Ali Akbar Spinning Mills Ltd, Riaz Textile Mills (Pvt) Ltd, Sapphire Fibres Ltd (Unit No 3), Nestle Pakistan Ltd, Sapphire Fibres Limited, Ejaz Spinning Mills Ltd, Shadman Cotton Mills Unit No 2, Rana Textile, Emco Industries 2nd, North Star Textile Limited, Sapphire Textile Mill Ltd (Unit No 5), Lahore Textile and General Mills Ltd, Gulshan Weaving Mills Ltd, Ravi Glass Industries, Ravi Rayon, Prosperity Weaving Mills Limited, Anjum Textile Mills Pvt Ltd, Sapphire Finishing, Kohinoor Weaving Mills Ltd, Ghazi Fabrics International Ltd, Quality Textile Mills Limited, and MGM Corporation.

The units enlisted for third round of gas disconnection have closed down and in majority of the cases the management of affected industries would not be able to deliver exports orders booked for December 2006 and January 2007. The new situation will not only result in further decline in exports but also deprive the exporters of their valued clients.

An affected exporter, who had booked an order of yarn for Japan, is now worried about his future. He says he is liable to pay penalty to his Japanese client for not delivering consignment as per agreement. His other worry is loss of many other clients as his textile unit has been closed down due to gas disconnection.

He says: "How can we compete in the world if we are bound to face punitive action like gas disconnection every year?"

This is not the story of only one industrialist who travels abroad several times a year to get a client in today's world when the whole market is open to get any product and the exporters across the globe have concessional inputs like gas and electricity. All units, which fell prey to the new SNGPL gas disconnection drive, have the same tale and their management was puzzled over such a harsh step. They cannot understand why the government top policy-makers issue statements of excluding export-oriented industrial units if they do not mean what they say.

Gas is the most important and cheapest fuel for industrial use and its continuous supply for 12 months can keep the exporters competitive in the international market. Of course, the exporters cannot enhance exports in the given situation when the industrial sector, in particular, export-oriented units get gas for only 9 months.

Copyright Business Recorder, 2006