Gas closure hitting hard megacity: Parekh

KARACHI: Saleem Parekh, President, SITE Association of Industry, in a press statement, expressed serious concerns over non-availability of gas in Karachi since Saturday and termed it ‘disastrous for the exporting industries’ and asked Federal and Provincial governments where they are heading?

He informed that Pakistan’s exports in the month of November 2018 have already declined by 6.4% and only $1.84 billion of exports are registered. Now with this scenario of no gas, how industries can meet their exports targets.

It is pure incompetence of SSGC with over 14% un-accounted for gas (ufg) in general and upto 41% ufg in interior Sindh. Gas producing Sindh share has been diverted to Punjab without taking care of the needs of Sindh. Sindh producing 73% of gas and uses only 36%, while Punjab is producing 5% of gas and consuming 49%.

Parekh said that another biggest problem is the 17 percent fixed rate of return on assets being offered to these gas utilities companies which has made them useless because it is essentially stopping them to come out of their comfort zone, reduce losses and make themselves competitive in the market.

SSGC is supplying RLNG to industries, which has higher calorific value than natural gas, due to difference in density it is causing higher escapes from lines and increasing ufg and OGRA is not compensating this loss.

Parekh further added that consumption of gas is increasing while our yearly production is stagnant, although Pakistan has sixth largest untapped shale gas reservoirs in the world.

He appealed Ministry of Commerce, Finance and Sindh Chief Minister to immediately intervene in this matter, before it is too late as non-availability of gas and cost of doing business in Sindh is getting worse day by day and these conditions and industrialists having no choice to shut down their factories and lay off millions of workers.