Tuesday, May 6, 2008, Rabi-ul-Sani 29, 1429    

Gas price hike to harm industry

Hussain Kashif

Lahore—In case the gas prices are raised by 35 per cent as has been sought by the Sui Gas Companies to OGRA, it would cast devastating repercussions upon the national economy and oust the export-oriented industries from the international export market. These apprehensions were expressed by LCCI President Mohammad Ali Mian after a meeting with APTMA delegation headed by its Chairman Akbar Sheikh. LCCI Senior Vice President Mian Muzaffar Ali, LCCI former Presidents Mian Anjum Nisar and Mian Shafqat Ali were also present on the occasion.

Mohammad Ali Mian said that textile is one of the most value-added and export-oriented sectors in Pakistan which accounts for more than 65 percent of total exports of the country, while 450 textile processing units are engaged in dyeing, bleaching, printing and processing of textile fabrics in the country for whom Sui gas has assumed the status of a basic/primary raw material/input which accounts for 25 to 30 percent of their total cost of production. Even the slightest enhancement in their cost of production at this critical juncture would, therefore, spell doom and oust them from the international export market which would deprive the exchequer of valuable forex to the tune of billions of dollars and throw thousands upon thousands of wage earners out of job.

The LCCI President argued that the contention which has been portrayed by gas companies time and again that their prices are cheaper than several other countries is fallacious, illogical, and untenable, because the prices quoted by them are not co-related with the cost of living index and hence do not depict the true picture.