KCCI demands immediate restoration of gas to Karachi industries

Business Apr, 5 2023
KCCI demands immediate restoration of gas to Karachi industries
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KARACHI: President Karachi Chamber of Commerce and Industry (KCCI) Muhammed Tariq Yousuf, expressing deep concerns over enduring suspension of gas supply to industries appealed government to issue strict directives for immediate restoration of gas supply with ample pressure to all industries of Karachi otherwise industrialists will have no choice but to close down their production units themselves.

President KCCI said that it was highly unfair to have such an attitude towards Karachi’s business community which, despite facing so many odds and challenges, contributes around 54 percent in terms of exports and more than 68 percent in terms of revenue. Karachi has been subjected to severe gas shortage and there was no help from any other source whereas as per SSGC’s statement, gas supply has gone down to 720 mmcfd from 810 mmcfd which was originally 1000 mmcfd. In this scenario, industries have to go through severe gas load shedding which was totally unacceptable and intolerable. Industries cannot function without gas so somebody at helm of affairs has to take cognizance of situation and see what was happening, he added.

He said that feasibility or viability of company gets badly disturbed due to suspension of gas supply and cost of production rises. If production unit, which usually runs for eight hours day, is only able to run for two hours, then cost of production becomes very high, which results in making finished goods uncompetitive. Sustainability is key word but under prevailing conditions when no gas was available to industries, production has gone down to 25 percent which needs immediate attention, he said, reiterating that industries must be provided uninterrupted gas otherwise they would have no choice but to close down themselves.

Condemning SSGC for suspending gas supply to Captive Power Plants (CPPs) of General Industries he said that this was highly deplorable move as it has intensified problems for industries who simply cannot depend on unreliable electricity being supplied by KE.

“CPPs provide reliable electricity to general industries which helps in keeping high-tech machineries involved in entire production line operational. It is well-known fact that even minor electricity fluctuation for few micro seconds terribly disrupts entire production line, damages pricey machineries and causes heavy monetary losses during production”, he said.

Published in The Daily National Courier, April, 05 2023

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