KCCI concerns on stoppage of gas supply to industry

18 Aug, 2012

While terming the move of SSGC unilateral, he stated that the KCCI takes a very exception of this arrogant and unilateral move by SSGC by abruptly stopping the gas to industry without any consultation with the stakeholders. He said that lame excuse of low pressure by SSGC is wrong and unacceptable. He stated that the officials of SSGC were repeatedly contacted but they are not replying and not picking up the phones.

President KCCI stated that in the next four days the industry was supposed to operate to cater the domestic needs and to meet the export targets. He lamented that particularly process industry would be badly affected due to stoppage of gas and productions of textiles, eatable items, and fast moving consumer goods (FMCG) would be seriously hampered if the gas is not restored immediately.
He said that this stoppage will lead to disturbance in the demand and supply chain and would upset the distribution of products in the local markets and upcountry destination. He said that scarcity of products in the market may also lead to increase of rates of products and black marketing.

He strongly condemned the arrogant attitude of SSGC and highly criticized such deplorable action by the Government. He said that in spite of ample reserves and gas availability in the province, such move of gas curtailment/ stoppage is highly deplorable as the industries in all the seven industrial zones would suffer. Such negative moves and decisions also harm the economy of Sindh which source around 68 percent revenue in terms of taxes and demanded to consult with Business Community.

He warned that the situation arising out of gas outages will lead to colossal collapse in commitment to export orders, flight of capital, huge labour layoffs, and worsening of law and order situation in Karachi and decline in the revenue of the government.

He said that on one side government is contemplating to increase targets for nominal growth and on the other side its harsh decisions of gas and power outages and increased utility tariffs are posing severe threats for achieving the said target. At present, country is going through a very serious economic crisis in terms of escalating cost of production/ manufacturing based on continuous rise on the utilities.

He said that the KCCI will not accept gas outages to its affiliated 7 industrial zones and industries thereof along with CNG stations in Karachi. He said that the KCCI will not be able to stop the ensuing agitation arising out due to stoppage of production in the industries owing to gas outage. The government must take the stakeholders into the loop and stop the one-sided iron handed policies and decisions, he maintained.

Copyright PPI (Pakistan Press International), 2012

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