PM urged to take notice of zero gas pressure to Karachi industries

Web DeskWeb Editor

28th Jun, 2021. 07:32 pm
Prime Minister Imran Shares Happiness Over New Records Set By RDA

KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) and its affiliated industrial town associations have expressed concern over the non-supply of gas to industries of Karachi for the last 14 days, which has halted production that would lead to huge losses, a statement said on Monday.

The gas supply has been suspended in the name of annual turn-around (ATA) of Kunnar Pasaki field, it said, adding that previously such disruption was caused due to ATA of Gambat field.

If SSGC, as per its claim, was facing gas shortfall of 200mmcfd to 250mmcfd from Kunnar-Pasakhi Deep (KPD) gas field and Engro Terminal, this shortfall could have been surmounted through the re-gasified liquefied natural gas (RLNG) for the time being but instead of doing so, they announced abrupt gas suspension to industries, which was totally unacceptable.

The KCCI appealed to Prime Minister Imran Khan to order the Sui Southern Gas Company (SSGC) to refrain from suspending gas supply and also order a probe into the massive gas mismanagement, as the industries in Karachi cannot afford any interruption in their production activities due to gas suspension.

Despite the fact that the government has accorded priority to gas supply to the export sector, the export-oriented industries of Karachi are also deprived of gas.

The exporters fear excessive delays in their shipments, which would lead to shipment by air or cancellation of orders, whereas, the export shipment of 40-feet container by sea to the US costs $8,400, while the same shipment by air costs $93,000, which is equal to the total cost of the consignment of 40-feet container.

In this manner, the export industries are facing colossal financial losses and would become bankrupt, leading to permanent closure and massive layoffs.

More than 40 allied industries, including general industry, are also associated with the export industries, which provide them goods and services.

Karachi contributes to around 60 per cent in the total exports and owing to the non-supply of gas the estimated losses caused to the exports on a daily basis comes to around $44 million, or Rs7 billion, the KCCI said, adding that as per the government’s gas priority policy, five export sectors would be treated at par with the power sector in gas supplies.

In contravention to its own policy, the government is providing gas to K-Electric Limited, while the export sector has been deprived of gas.
The Karachi Chamber of Commerce and Industry appealed to the prime minister and the federal minister for energy to take immediate notice of zero gas pressure to industries in Karachi and issued directives to resume gas supply on an immediate basis so that the industries and exports must not suffer further in the best interest of the economy.

Adsense 300 x 250