KARACHI: The government has been urged to give first priority to the industries of Karachi in respect of gas supply which contribute more than 54 per cent to national exports, provide highest urban employment and generate highest taxes for the exchequer.
The government in the Natural Gas Load Management Policy has upgraded five zero-rated export sector industries to the second position.
In a joint statement, Chairman Zubair Motiwala and Vice Chairman Jawed Bilwani of the Businessmen Group, President of the Karachi Chamber of Commerce and Industry Mohammad Idrees, President of the Site Association of Industry Abdul Rasheed and its former president Saleem Parekh after a meeting which discussed the gas supply problem said the zero-rated export sector industries should be given first position and general industries second position in the priority list followed by commercial, domestic and other sectors to increase the production and fulfill the aim of the government to enhance exports.
They said it was highly unfair that the government had accorded first priority to the domestic sector in terms of supply of gas on subsidised tariff through cross subsidy by charging high rate of gas from industrial consumers.
The industrialists and exporters said the industries, which provide cross subsidy for gas to the domestic sector, lack priority in respect to gas supply while the domestic consumers have been accorded the first priority at the cost of industries. For supply of power, no such subsidy is given to the domestic sector. Reason is simple that the calculation of gas pricing is done after accounting for all subsidies to be given to domestic, fertiliser and other sectors. This means that total subsidy given in this regard to various sectors is not borne by the government or included in the budget but is actually taken from the industrial sector during calculation of gas pricing.
They proposed that the domestic connections already given in the urban and rural areas should be removed gradually and converted to other sources like LPG in urban areas and Biogas in rural areas.
Globally the governments give priority in natural gas supply to the industries while domestic and commercial sector is supplied LPG but in Pakistan precious natural gas is being supplied to domestic and commercial sectors at the cost of industries, they added.
Moreover, unaccounted for gas/line losses are approximately 10 per cent in the domestic and commercial sectors while it is approximately 1pc in the industries sector, they claimed.
Published in Dawn, November 6th, 2021
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