Gas suspension enrages businesses, spurs criticism of PTI government

KARACHI: The country’s apex trade body on Monday asked the government to immediately roll out help for industries against gas suspension that has enraged businesses at what they see as government incompetence and its ‘criminal negligence’.

Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has expressed disappointment on the government’s decision to suspend gas supply to non-export oriented industries; “which will result in the losses of billions of rupees”.

“Why no preemptive arrangements were made; while everyone in the government knew well that there will be huge gas shortage in the winter months,” Mian Nasser Hyatt Maggo, president FPCCI said in a statement. Maggo regretted that only 10 cargoes of LNG are coming in December 2021 as compared to 12 in December 2020.

“The delayed tendering has proven to be extremely expensive and resulted in less than required offers; and, that too, on a very high rate.” FPCCI president said only 886 MMCFD of LNG will be imported in December 2021and only 950 MMCFD in January 2022, which is 27 percent less than the LNG imports in December 2020 and January 2021, respectively.

“The responsibility and liability lies with the government for the criminal negligence for practicing delay and procrastination in issuing LNG Cargoes once again,” he added “Had the tenders were issued in a planned, coordinated and timely manner, there would have been no shortage by now.”

Maggo said FPCCI time and again raised gas shortages issue; and, “still industries have to endure gas suspension several times in every single year”. “Had the government come to FPCCI for a consultative process on the issue, we would have provided them guidelines to successfully forfend the gas crisis in a win-win mechanism.”

FPCCI president questioned that why the government does not issue enough LNG import licenses to commercial importers to bridge the gap? “Instead, it keeps mismanaging the gas supplies to the industries.”

He sought immediate and direct intervention of the Prime Minister Imran Khan to save the industrial backbone of Pakistan and proposed that, “though difficult, but the PM should consider the option of spot tendering with the help of friendly countries”.

“FPCCI strongly demands immediate steps to restore gas supply to industries; and, take other remedial & compensatory measures to avoid closure of industrial units and loss of millions of jobs in the non-export oriented industries for the working class of Pakistan, which lives paycheck to paycheck every month,” Maggo added.

Meanwhile, Karachi Chamber of Commerce & Industry (KCCI) on Monday announced its support to general industries’ resistance against suspension of gas supplies. Muhammad Idris, president KCCI said suspension of gas supplies would not only affect localproduction but would also have a severe impact on the export-oriented industries as well because “both were linked with each other and it was these general industries which provide raw material to export-oriented industries”. President KCCI suggested Energy ministry to devise “some kind of an effective mechanism that ensures provision of additional 10 percent gas to industries in Karachi from Sindh’s indigenous gas resources which would certainly result in smooth functioning of general as well as export-oriented industries throughout the winter season”.

“We feel that if only 100mmcf of additional gas is given back to Karachi, out of 180mmcfd gas which has erroneously been given to SNGPL, it would surely normalize things and resolve all the problems being faced by the business & industrial community due to unavailability of gas,” Idris said in a statement.

“The government must look into the possibility of giving back 100mmcfd gas from Sindh’s natural gas resources to industries in Karachi which, if done, will make everything alright as both, the export-oriented and general industries will stay operational without any problem.”