KARACHI: Abdullah Abid, the Acting President of the Federal B Area Association of Trade and Industry (FBATI) and head of the Gas Sub-Committee, has termed the government's imposition of a levy on natural indigenous gas as unjustified, demanding the government for its immediate withdrawal.
Abdullah Abid said that the government's aim in imposing this new levy on gas is to make electricity from Captive Power Units (CPUs) more expensive. He said that the government has already achieved this goal because the electricity from captive power units, when supplied to industries from the grid, is more expensive than the B3 electricity tariff. Therefore, the further imposition of this additional levy is incomprehensible and unfair. He demanded that the government immediately withdraw this levy.
The government has already set the price of indigenous gas at Rs. 3500 per MMBTU, which has made the production cost of captive power plants more expensive than the electricity received from the grid. After this, he argued, there is no justification for imposing the transition levy.
Abdullah Abid warned that if the government does not reverse its action, industrialists will be forced to resort to protests and shutdowns (strikes/lockouts). He concluded by stating that employment opportunities are already very low in the country, and such measures could lead to the shutdown of the remaining industries and unemployment.
Copyright Business Recorder, 2025