KARACHI:Saleem Parekh, President, SITE Association of Industry, in a press statement, expressed serious concern over non-availability of gas in Karachi since Saturday and termed it a disastrous for the exporting industries and asked federal and provincial governments where are they heading?
He informed that Pakistan’s exports in the month of November 2018 had already declined by 6.4% as only $1.84 billion exports were registered. Now with this scenario of no gas, how industries could meet their exports targets.
It is pure incompetence of SSGC with over 14% un-accounted for gas (UFG) in general and upto 41% UFG in interior Sindh. Gas producing Sindh share has been diverted to Punjab without taking care of the needs of Sindh. Sindh producing 73% of gas and uses only 36%, while Punjab is producing 5% of gas and consuming 49%.
Parekh said that another biggest problem was fixed rate of return of 17% on assets being offered to these gas utilities companies making them white elephants useless because that is stopping them to come out of their comfort zone, reducing losses and making themselves competitive.
SSGC is supplying RLNG to industries, which has higher calorific value than natural gas, due to difference in density it is causing higher escapes from lines and increasing UFG and OGRA is not compensating this loss.
Parekh further added that consumption of gas was increasing while yearly production was stagnant, although Pakistan had sixth largest untapped shale gas reservoirs in the world.
Parekh appealed to Ministry of Commerce, Finance and Sindh Chief Minister to immediately intervene into this matter, before it was too late as non-availability of gas and cost of doing business in Sindh was getting worse day by day and those conditions and industrialists having no choice to shut down their factories and lay off millions of workers.