Karachi, The industrialists of Karachi's SITE industrial area have voiced strong opposition to the recent hike in gas prices. This increase, they argue, threatens the viability of many industries in the area, with concerns that it may lead to widespread closures, particularly in the export and general industry sectors.
According to SITE Association of Industry (SAI), an emergency meeting was convened to discuss the ramifications of the sharp increase in the industrial gas tariff. The association leaders emphasized that industries in Karachi are already struggling to compete in international markets due to high production costs, and the recent hike in gas prices exacerbates this issue, potentially impacting their ability to compete globally. They highlighted that, despite the increased tariff, the SITE area, situated at the end of the Sui Southern Gas Company's network, experiences inadequate gas pressure. This has led industries to resort to alternative fuels like wood and coal, raising concerns about environmental compliance and deforestation.
The SITE leaders expressed the belief that the industrialists are being pushed towards shutting down their units in Karachi, a move that could result in significant job losses and potentially escalate law and order problems due to a rise in street crimes. The members also raised concerns about the government's subsidy policy, which they claim favors the fertilizer and domestic sectors over industrial sectors. Despite attempts to address this issue with senior government officials, including the Prime Minister, and the Federal Ministers of Energy and Finance, their concerns have reportedly been ignored.
The meeting concluded with a unanimous decision to demand the government implement the tariff of Rs 1350 per MMBTU set by the Oil and Gas Regulatory Authority (OGRA) for industries, representing the full cost of gas. The industrialists resolved to continue protesting against what they view as an unwise and excessive increase in gas rates.