LCCI resents unilateral hike in gas tariff

RECORDER REPORT

LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) on Monday took a strong exception to the Oil and Gas Regulatory Authority (Ogra) decision making around 15-percent increase in gas tariff without any prior notice to the industry and said this decision would cost devastating repercussions for local industry apart from ousting the export-oriented industries from the international export market.

LCCI President Irfan Qaiser Sheikh said here on Monday that unilateral increase in gas tariff through raise in cess was a sheer injustice and would further jack up inflation to alarming levels. The raise incorporated in the industrial gas bills for the month of July had created multiple problems for the industrialists as the authorities kept them in the darkness about the hike, resultantly they could not include it into their cost, he added. According to him, when the government functionaries or ministers visit Lahore Chamber, they always vow to take the private sector on board on all future decisions but it was very unfortunate this time they did not bother to even consult the LCCI or any other sector-specific association while jacking up the gas tariff.

The impact of this increase would be much bigger than the expectation of the government who should avoid any such decision keeping in view the economic scenario in the country.

The LCCI President said that Rs 100 MMBTU increase in the gas tariff would put extra burden on cash starved industry therefore the Ogra authorities should immediately withdraw this raise. “If the Ogra authorities fail to take this back, there are a number of associations who would be moving court against this unilateral decision, he said, adding “By making such like decisions, the Ogra is not doing any service to the industry.”

He said at a time when all the governments in the world were facilitating their respective private sectors, the situation in Pakistan was the other way round and various government departments were tightening noose around the private sector.

Quoting the example of textile sector, the LCCI President said, “It is one of the most value-added and export-oriented sectors in Pakistan which accounts for more than 60 percent of total exports of the country while 95 percent of its inputs are locally produced and by making energy out of their reach, government is in fact curbing the use of local inputs.”

He said that even the slightest raise in the cost of production at this critical juncture would, therefore, spell doom and oust Pakistani merchandise from the international export market which would deprive the exchequer of much-needed valuable foreign exchange to the tune of billions of dollars.