Karachi, October 30, 2018 (PPI-OT): Mr. Salem Parekh, President SITE Association of Industry has strongly condemned notices issued to Captive Power generating industry by SSGC with regard to closure of gas for 3-months i.e. December, January and February. In other words SSGC is asking industries to closed down for 3-months. Mr. Parekh said that SITE Association of industry totally rejects these notices and the justification clause provided in the notices by SSGC. No body reads these agreements and these clauses are not to be exercised or implemented, and SSGC has to see the larger interest of issuing such notices, as Karachi exports 30 percent of total country’s export and this step of SSGC would bring the industry at standstill.
He informed that industries are already facing problem of low pressure and closure of gas on every Sunday, and now these notices have created panic among the factory owners. Industries have shown serious concerns in meeting export orders in such conditions.
He said that from November to March are very crucial period for the exporters due to Christmas season and other religious festivals. He added that we are also foreseeing that due to imposition of 25% additional duty on Chinese exports by USA, Pakistani industries are likely to get large number of export orders, but due to shortage of utilities and poor infrastructure we would not be able to capitalize this golden opportunity.
Mr. Parekh said that as per article 158 of the Constitution, resources originator province has first right to utilize resources. Sindh produces 73% of gas of Pakistan and uses only 29%, it means Sindh has already over extended helping hand to other provinces. It was decided and agreed under Ex-President General Musharraf regime that province would get 50% share of the total exploration, which today stand at 2900 MMCF while only 1200 MMCF is provided to Sindh, as per the agreement Sindh share comes to 1450 MMCF.
SSGC management is creating chaos in industrial estates on daily basis either by issuing notices of closure; supplying gas on low pressure; visiting industries without any notification or informing trade association of the area.
Mr. Parekh said that Ministry of Textiles and Commerce are trying to bridge trade deficit and looking towards industries to help them by enhancing exports and in the process of taking corrective measures to facilitate exporting and manufacturing industries in order to increase domestic investments and generate employment, BUT on the other government utility agencies are issuing notices of closing gas.
He said that the new government is trying to enhance the production and lower down the cost of manufacturing and cost of business, which the government is practically doing and also demonstrating the same in the way that they have not enhanced the tariff of Export Oriented Industries and they have also brought in many other reforms such as payment of sales tax refunds on urgent basis, DLTL claims to be streamlined and timely payments of custom rebates so that the exporters which are in deep crisis of cash flow, can have better cash flow and can export more for the county.
Mr. Parekh appealed to the Ministers of Finance; Petroleum, and Textile and Export Advisor to immediately look into this matter and withdraw these notices on emergent basis and ensure industrial growth and make the vision of newly elected government. He also called upon the Chief Minister of Sindh Syed Murad Ali Shah as he has always been helpful to the industry, to kindly look into this fiasco that what is being done to the industries of Sindh.
He also requested to the Prime Minister of Pakistan for opening of one-window facility for local investors who are doing business for the last 40 years in Pakistan. Mr. Parekh said that the need of the hour is to have coordination among different Ministries and utilities agencies to facilitate local investors as they are not asking for duty exemptions but supply of un-interrupted utilities and peace of mind. If the local investor is satisfied new investment would automatically come to Pakistan.
For more information, contact:
Secretary General
S.I.T.E. Association of Industry
H-16, Textile Avenue, SITE, Karachi
Pakistan
Tel: +92-21-32562883, +92-21-32560705
Fax: +92-21-32560704
E-mail: site@site-association.org
Website: www.site-association.org