Raise in gas prices flayed

LAHORE- Because of acute shortage, load-shedding and phenomenal hike in electricity, large industrial group made a big investment by installing Captive Power Projects, based on Sui Gas. This industrial group took such an expensive step, so that the wheel of the domestic industry keeps running, but the recent hike in gas tariff has become them unviable to both, large industrial group, which is utilizing Captive Power and small industries, those are utilizing gas as raw material. 31% rise in gas prices has destroyed the existence of the domestic industry. At present hundreds of thousands labourers have become unemployed due to the increasing rates of gas & electricity, which has resulted into the closure of thousands of small and large units," says Tanvir Ahmad Sufi, Chairman Pakistan Soap Manufacturers Association He further said that the industrial sector has already been facing innumerable problems; in the crucial phase, the recent decision of tariff hike would force a good number of industries to close down. He said this is very important factor that industry and trade should be competent. The most important factor to make industry compatible is to facilitate it by reducing input cost. But contrary to this economic policies of our government are adversely affecting the industry. Industrial production is made more and more expensive. This is why our products are not finding place in the international market competition. He added in Pakistan economic and monitory policies are not supporting industrial sector. In fact we are seeing all together in different attitude. It looks as if our economic expertise has lost the vision to redress the problems of industrial sector; contrary to it we see that the industries are over burden. Very recently some drastically hurting measures are taken increasing markup, imposing L/C margin on imports, increasing sales tax rate by one per cent, adding surcharge in utility bills have counted for increasing financial burden. He said the most damaging factor to increase Sui Gas charges on its industrial consumption & tremendous increase in gas charges for Captive Power Units serve as to hammer nail in the coffin. One cannot understand what is the wisdom in making Captive Power Units expensive as compare to IPP Units.

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