The Lahore Chamber of Commerce and Industry on Saturday rejected a proposed increase in gas tariff, warning that it could add unfortunate to the industrial sector and turn local products uncompetitive in the global market. LCCI President Ijaz Mumtaz in a statement urged the govt to give a due representation to the private sector in the Oil and Gas Regulatory Authority to make it an efficient institution.
"At present all decisions are being taken without considering the ground realities. The increase in gas tariff would jack-up the cost of doing business manifold and oust the export-oriented industries from the international export market where Pakistani products already facing hard competition." He further said that such anti-business acts would hamper the growth of manufacturing sector. "The proposed raise in the gas tariff will create multiple problems for industrialists since they have to bear a heavy loss while fulfilling their export commitments. The govt machinery always vows to take the private sector on board but it has never bothered to consult the Lahore Chamber or any other sector-specific association while taking decisions on gas or electricity tariff."
He said, "Increase in the gas tariff will put extra burden on cash starved industry. Therefore, the OGRA [Oil and Gas Regulatory Authority] should avoid taking such initiatives. By making such decisions, the OGRA will not be doing any service to the industry except widening the gap between the private sector and the govt. At a time when all the govts in the world are helping their respective private sectors, the situation in Pakistan is on the reverse and various government departments were tightening noose around the private sector. Even the slightest raise in the cost of production, at this critical juncture, would, therefore, spell down and oust Pakistani merchandise from the international export market which will deprive the exchequer of much-needed valuable foreign exchange to the tune of billions of dollars."
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