Gas supply disruption to hit industrial production, exports

KARACHI: Disruption of gas supply in industrial areas of Pakistan’s largest city has impacted production with outfall to likely delay export orders as well as domestic supply of goods in the long run, industrialists said.

Industrialists from Korangi, SITE and other industrial areas have complained regarding the disruption in gas supply, and said that looking at the suspension of production, their buyers might move to other countries including India and Bangladesh.

According to the constitution, the province, which has natural resources, also has the priority right on its resources before supplying to the other provinces. Industries were the fourth priority in supply of natural gas.

Industrialists said they would face huge losses if their export orders were cancelled and buyers moved to other countries. They had already faced hardships in the face of Covid-19 lockdowns.

Korangi Association of Trade and Industry (KATI) President Saleem-uz-Zaman said in a statement that it was not right to impose the whole gas shortfall only on Karachi industries. The shortfall should be distributed to other parts of the country as well.

He said the government's decision to shut down the gas supply of industries was an extremely inappropriate move. “This decision will have a very negative impact on Karachi's industry and the country's economy,” he added.

The federal government and Sui Southern Gas Company (SSGC) officials should take immediate notice of the situation and resolve the problem faced by the industries of Karachi and issue orders to restore the supply on an emergency basis.

KATI president said that industrial production process was being severely affected due to non-supply of gas to industries and reduction in gas pressure.

However, in the current situation, the country cannot afford the negative impact on industrial production due to reduction in gas pressure and disruption in energy supply.

Zaman further added that it was not right to suspend gas supply to industries on a single notice.

The move has raised serious concerns among industrialists. Overcoming the gas crisis is the responsibility of the government and SSGC officials, he added.

He also mentioned that this act was tantamount to “an economic assassination” of Karachi. Covid-19 epidemic had already hit industrial production hard. This has significantly reduced the production of goods for local needs and exports.

The president of the association said that the gas crisis would lead to a rise in unemployment in Karachi, the country's economic hub, which would be an additional blow to the economy.

Earlier, SITE Association of Industry officials had also slammed the closure of gas to general industries by the SSGC and termed the move disastrous for industries in the city.