Karachi’s business community is in crisis due to the protracted stoppage of gas supplies to the city’s industries. Businessmen are urging the government to resume providing gas to companies with sufficient pressure because if they don’t, they will be forced to shut down their manufacturing facilities. Mohammed Tariq Yousuf, the president of the Karachi Chamber of Commerce & Industry (KCCI), voiced his serious worry about the circumstance and pleaded with the government to act quickly.
“It was really unjust to have such an attitude against Karachi’s business community, which provides around 54% in exports and more than 68% in income while experiencing so many obstacles and difficulties,” said Yousuf.
Asad Ali, an analyst for the energy sector at Insight Securities, told the Express Tribune that the output of natural gas has been falling due to depleting reserves and that importing gas appears to be the only practical solution. The government must implement the WACOG (Weighted Average Cost of Gas) bill, which would standardize gas pricing for both local and imported fuel. This strategy will solve the spiraling circular debt and gas scarcity problem.
Sui Southern Gas Company (SSGC) reports that the gas supply has decreased from 810 mmcfd, the initial 1000 mmcfd, to 772 mmcfd. As a result, there must be significant gas load shedding in the industry.
Ismail Suttar, the president of the Lasbela Chamber of Trade and Industry, told the Express Tribune that he thinks Pakistan has to cease providing home customers with piped gas right away and instead raise gas costs by giving them access to LNG through cylinders. He stated that Pakistan must follow this strategy since it is customary in every nation.
According to the president of the KCCI, industries cannot operate without gas, and when the gas supply is cut off, manufacturing costs rise, and final goods become less competitive.
Yousuf angrily criticized SSGC for stopping gas shipments to Captive Power Plants (CPPs) of General Industries, calling the action a very reprehensible decision that made matters worse for the sectors of the economy that can no longer rely on KE’s erratic energy supply.
“CPPs offer reliable energy to general industries, which aids in maintaining the high-tech equipment necessary to run the complete production line. It is well-known that even a small electricity fluctuation lasting a few microseconds severely interrupts the entire production line, damages the expensive gear, and results in significant financial losses while production is underway,” he stated.
Salman A. Siddiqui, the SSGC’s Head of Corporate Communication, stated there had been no gas supply restrictions by the company in an interview with the Express Tribune. Gas has only been supplied to non-exporting companies for their use in power production, allowing domestic users to increase their gas pressures in preparation for Sehri and Iftaar.
