Unprecedented hike in gas tariff rejected

PESHAWAR: Khyber Pakhtunkhwa Board of Investment and Trade (KPBoIT) Vice-Chairman Senator Mohsin Aziz has rejected the recent unprecedented hike in gas tariff by 67 per cent.
Speaking at a press conference here on Tuesday, the senator from the Pakistan Tehreek-i-Insaf said the federal government’s decision was an injustice to the consumers. He feared the manifold increase would lead to closure of industries, joblessness in Khyber Pakhtunkhwa and the country as a whole.
Mohsin Aziz said the decision would increase a sense of deprivation among the smaller federating units. He pointed out that the KP was producing surplus natural gas compared to its total consumption while gas was being supplied to Punjab as well from this province.
The senator asked the federal government to stop what he said was the step-motherly attitude towards smaller provinces and let them fully utilise the indigenous natural resources.
Mohsin Aziz went on to say that the federal government had imposed a moratorium on new gas connections for industries in KP for the last eight years. The gas loadshedding, he said, was also being carried out due to high pressure and rising consumption in Punjab.
The KP BoIT vice-chairman said the federal government was trying to burden the poor gas consumers through various tactics and unjust policies, which could not be accepted at any cost.
Mohsin Aziz, who was flanked by the KPBoIT member, Muhammad Ishaq, said the provinces had the legitimate right to fully exploit indigenous natural resources as per Constitution. But, he said, the policies are depriving smaller provinces of their constitutional rights. He said that only 40mmcfd gas was supplied to industries in KP while consumption was 1200mmfcd in Punjab.
The senator said federal government had earlier increased gas tariff by imposition of Gas Infrastructure Development Cess (GIDC). He said the gas tariff was increased 44 percent during last three months.
Of other competing countries, Mohsin Aziz said the gas prices in the neighbouring India is Rs.415mmfcd, as compared to Pakistan, which is Rs.770mmfcd with recent increase for industries, while in Bangladesh Rs.350mmcfd, and Vietnam Rs.470mmcfd.
The senator accused the federal government of following Punjab-centric policies which, he said, had brought the industries on the verge of collapse, as a large number of industrial units have been closed down in KP, and the country as whole.
Despite the granting of Generalised System of Preferences GSP+Plus Status to enter duty free access to the European Union market, he said the export volume of Pakistani manufacturing products, especially textile, had been brought down at level which was eight year ago.
Vowing to move a motion in the Senate against the increase in gas tariff, Senator Mohsin Aziz urged the all chambers of commerce and industries along with the political leadership to raise voice against the unjustified hike in gas prices and save the industries from closure.