KARACHI: An Emergent meeting of SITE Association of Industry (SAI) was held to devise strategy for future line of action in view of recent exorbitant increase in industrial gas tariff due to which, industries of Karachi have become unviable to operate and majority of industries (export and general industries) may not survive and will close down.

SAI leaders addressing meeting, stated that industries are already facing hard time to compete with neighbouring countries in international markets due to high production cost while current exorbitant increase in gas tariff is, in no way viable for them.

They said that in SITE area, being located at tail-end of network of SSGC, there is no guarantee of gas pressure despite increase in gas tariff. Due to unavailability of gas and poor pressure, industrialists of SITE are forced to use alternate fuels like wood and coal which are not only creating environmental compliance issues for exporting industries but are also contributing to deforestation in country.

Members expressed their reservations over government’s subsidy policy, which it said, favoured fertilizer and domestic sectors at expense of industries (whether general or export-oriented). Association had taken up matter with high-ups in government, including Energy Minister, Finance Minister and Prime Minister, but to no avail.

Meeting demanded that government should apply tariff of Rs 1,350 per million British thermal units (MMBTU) determined by Oil and Gas Regulatory Authority to industries, which was 100 percent cost of gas.

Published in The Daily National Courier, November, 14 2023

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