Print Print edition: 2011-03-01

Zardari calls meeting on gas crisis today

Published Updated

President Asif Ali Zardari on Monday called a high-level meeting in Karachi on Tuesday (today) to resolve the issue of gas crisis, Business Recorder has learnt. The representatives of All Pakistan Textile Mills Association (Aptma), Sui Northern Gas Pipeline Limited (SNGPL), the Petroleum Ministry and other stakeholders will attend the meeting.
"Textile production is likely to decline by 30 to 35 percent due to five-day a week gas load shedding that has resulted in complete shut down of textile industry," Aptma Chairman Gohar Ijaz told Business Recorder here on Monday. He said export target of $14 billion was set for the current fiscal year, however, this target is unlikely to be met if gas shedding on the current scale continues. "Despite government''s stated policy to have two-day a week gas load shedding for textile industry, it is resorting to 5 days a week gas load shedding which is negatively impacting the country''s major export earner," said Gohar Ijaz.
He confirmed that the President had called a high-level meeting today to address the concerns of Aptma over the increase in number of gas load shedding days by the SNGPL to the industry that tantamounts to destroying the industry. More than 600 industrial units including processing, printing, sizing, dyeing, hosiery, and chemical manufacturing plants remained closed for the fifth consecutive day due to gas load shedding.
"Supply of gas to the industry is more important than the CNG stations and textile industry is a major source of foreign exchange earning as well as providing employment opportunities and the government simply can not afford its closure," he added.
Sources said the Ministry of Petroleum was ready to discuss the issue of gas load shedding during the last meeting of the Council of Common Interests (CCI) after high courts had issued order against load shedding in Sindh and Khyber Pakhtunkhwa. But the Punjab Chief Minister inexplicably did not raise the issue of gas load shedding during the meeting.
Sindh High Court and KP High Court had given decisions that according to Article 158 of the Constitution, the two provinces will meet their gas requirements first and therefore no gas loadshedding plan would be implemented in these provinces. "The government will have to amend the Constitution if it wants to share load shedding equally among all provinces," sources said, adding that Sindh and KP would understandably resist any such amendment.
"Even the ruling Pakistan Peoples Party (PPP) party will not be able to develop consensus within the party to amend the Constitution with the objective of equally sharing gas load shedding," sources said. In case of increasing load shedding, gas utilities have been cutting supplies to other provinces to divert gas to Punjab but now they can not follow this practice after Sindh and KP high courts'' orders.
SSGC had no binding agreement with Karachi Electric Supply Company (KESC) for gas supply and therefore gas could be diverted to SNGPL to overcome gas crisis in Punjab. "But after the court orders it is impossible to divert gas," sources added. "Our first priority is provide gas to domestic consumers," sources said, adding that domestic consumers have lodged complaints against SNGPL in the Ministry of Petroleum over gas loadshedding that has sparked protests in different parts of Punjab as a cold wave has hit northern areas of the country.
Office-bearer of CNG Association, Paracha said that SNGPL had a provision in gas sales agreement inked with the industry that allowed SNGPL to cut gas supply from December 1 to February 28 to industry. "But the industry is being provided gas that has created problems for the consumers of priority sectors including domestic and CNG consumers triggering strong protests in different parts of Punjab," he added.