Industrialists have strongly opposed the proposed increase in gas prices, warning of severe consequences for export-oriented industries and small and medium enterprises (SMEs). They emphasized that such a move would damage the national economy, leading to decreased exports and losses to the exchequer.
The Oil & Gas Regulatory Authority (OGRA) has recommended a gas price hike of up to 26 percent starting February 1, aiming to generate Rs. 847.33 billion in revenue during the current fiscal year. Sui Southern Gas Company (SSGC): Rs. 1,762.51 per MMBTU, Sui Northern Gas Pipelines Limited (SNGPL): Rs. 1,778.35 per MMBTU, this adjustment is expected to generate Rs. 319.78 billion for SSGC and Rs. 527.55 billion for SNGPL.
Shaikh Muhammad Tehseen, President Federal B Area Association of Trade and Industries (FBATI), urged the government to reconsider the hike to prevent further closures of SMEs. He stated that SMEs are already grappling with high production costs due to soaring utility prices and taxation. “There are no substantial incentives or relief measures for SMEs, unlike the corporate sector.
This environment is discouraging for businesses and entrepreneurship,” he said. Ijaz Khokar, former Chairman of the Pakistan Readymade Garment Manufacturers and Exporters Association (PRGMEA), highlighted that the hike would adversely affect the competitiveness of value-added exports, particularly in textiles. “The textile sector, which achieved a 10% export growth this year despite challenges, is now at risk. Increased gas prices will escalate production costs, making Pakistani products less competitive globally,” Khokar added.
Industrialists warned that higher gas prices will push up production costs, reducing global competitiveness for Pakistan’s value-added goods. Increased utility expenses could lead to job cuts in already struggling industries. A decrease in production and export receipts could reduce government revenues from profitable companies. Industry representatives urged the government to involve stakeholders in decision-making to stabilize the economy.
They stressed the need for policies that support businesses rather than impose additional burdens. “Ensuring the sustainability of SMEs and export-oriented industries should take precedence over revenue generation through higher gas tariffs,” they concluded. The industrialists emphasized that fostering a conducive business environment is crucial for economic growth, employment, and securing foreign exchange for the country.
