Karachi, December 28, 2018 (PPI-OT): Today an emergent meeting was held at SITE Association of Industry with regard to low pressure and non-availability of gas. Members in large number attended the meeting and it was resolved that from Monday all industrialists will close their factories from Monday and would stage protest at Governor House on Tuesday, January 01, 2019.
Mr. Salem Parekh, President SITE Association of Industry in a press statement said that SITE being largest industrial area of Karachi, exporting 52 percent of Pakistan’s exports, generating 64 percent of total Pakistan’s tax revenue is being treated step motherly by gas utilities’ companies. Despite complaints at Federal and Provincial levels both governments are least concerned to protect employment, exports and tax revenue of the city and province.
Mr. Saleem Parekh and Chairman, Media and Publication Committee Mr. Sanaullah Abdullah informed that at the moment SITE industrialists are facing:
Low gas pressure is equivalent to having no gas at all. It is a 360 degree turn from government policy of industrialization, export led growth and development of import substitution industry
Out of 45 days, 33 days there was extreme low pressure and 12 days were total gas load shedding in SITE area
SITE industries are losing about 2.5 billion each day by mismanagement of SSGC
On one hand government is allowing heavy UFG (unaccounted for gas) and high fixed rate of return to gas utilities, on the other hand gas utilities’ gross mismanagement is a cause of huge loss to exchequer in shape of substantial foreign exchange loss and tax revenue loss
Exporters are losing orders and are unable to full fill their yearend export commitments which will further decrease country’s export which have been flat since last 5 months of the current financial year, despite devaluation and incentives announced by the government
Saleem Parekh said that industrialists of Karachi are unable to understand why Sindh government is not concerned to fight for Sindh right under Article 158. Saleem Parekh informed that SITE Association has requested Federal Finance Minister to give same subsidy to Sindh as given to Punjab on RLNG price on weighted average mix. Sindh only requires 50 mmcfd RLNG subsidy whereas Punjab is enjoying subsidy for 200 mmcfd.
Saleem Parekh announced that if gas supply does not improve by Sunday, December 30, 2018, all factory owners have decided to closed down their factories from Monday and would stage protest at Governor House on Tuesday.
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