Restoration of gas to Karachi units: Textile makers-cum-exporters send ‘SOS’ to PM

KARACHI: Textile makers-cum-exporters Saturday sent an ‘SOS’ to the prime minister over zero-level gas pressure to Karachi-based industrial units, seeking his urgent notice to end the utility supply’s suspension.

A letter that Chief Coordinator, Value Added Textile Forum (VATF), Muhammad Javed Bilwani dispatched to the prime minister, sought restoration of gas supplies to the Karachi-based industrial units.

A copy of the letter was also made available to Business Recorder on Jan 1, 2022, which titled “SOS” following gas pressure reduced to zero-level.

“The gas supply and pressure to export industries of Karachi has further aggravated and became worst which direly demands your urgent notice,” according to the letter.

Karachi’s industries with contribution of over 50 percent to the national’s total exports is “starving” for the most essential input supply of gas.

“Gas Supply to the textile export industries is worsening every coming day which has brought disastrous effects on the export consignments,” it maintained.

The VATF said that the export production has reduced from zero gas supplies, making hard for the industries to meet their export commitments on time.

Despite of claims that the government has exempted the manufacturing units from gas cuts, the main utility is still being supplied to their captive power as well as for processing units.

“However, here in Karachi there is no gas for 16 hours due to zero gas pressure and gas is supplied only eight hours in a day,” the letter said.

Moreover, several of Karachi based exporters have only RLNG connections are paying excessively for $15.67 per MMBtu despite the required supplies are only available for eight hours a day from 11 pm to 7 am.

The Managing Director, SSGC informed the VATF that the gas supply and pressure will further decline.

The PSO has discontinued supply of furnace oil and diesel to the exporters of Karachi as Pakistan Refinery Ltd (PRL) temporarily shut down its production, it said.

Foreign buyers have become “doubtful” over their consignments will sail without delays to their countries following a halt in Pakistan’s textile making.

In a bid to avoid delays in export of their consignments, the global buyers are demanding their shipments should be made via air that amounts 800 percent costlier to that made by sea, according to the letter.

If exporters failed to ship the foreign consignments on time, the buyers are likely to divert their orders from Pakistan to India and Sri Lanka, citing a communication with global market players, the letter maintained.

Copyright Business Recorder, 2022