Pakistan is facing an economic upheaval with an alarming 223% surge in gas tariffs within a single year, and the consequences are nothing short of a seismic. This abrupt rise in fuel costs has placed our industries on the brink, endangering our foothold in the global marketplace.
In the wake of this economic upheaval, industry leaders, led by Adil Siddiqui, President of the Hyderabad Chamber of Commerce and Industry, are raising their voices in unison; urging the new government and the Special Investment Facilitation Council (SIFC) to recognise the severity of the situation. Siddiqui is advocating for a strategic focus on research and development (R&D) to uncover alternative fuel sources that can resuscitate our struggling industries. His plea is not an abstract one but is grounded in the dark reality of small industries facing an exponential increase in utility bills, climbing from Rs10 million to Rs30 million monthly.
The 223% hike in gas tariffs has already resulted in a 30% capacity closure in textiles and apparel, with others teetering on the edge of extinction. Zahid Mazhar, Chairman of All Pakistan Textile Mills Association (APTMA) South Zone (Sindh), emphasises the immediate threat to our global competitiveness against regional rivals like India, Bangladesh, and Vietnam, revealing a stark disparity in energy costs. As Pakistan charges Rs52 per kilowatt-hour (kWh) or 18 cents/kWh, our counterparts offer significantly more attractive rates.
Muhammad Farooq Shaikhani, President of the Hyderabad Chamber of Small Traders and Small Industry, has echoed these concerns, pointing out the insufficient gas supply from Sui Southern Gas Company Limited, which operates a meagre 15 hours a day. Shaikhani decries the reduction in gas supply during Ramazan as a detrimental move that worsens challenges faced by industries. Not only do industries depend on fuel charges being at a rate that ensures financial feasibility and profitability for businesses to operate effectively, but they also require a consistent gas supply to meet their operational needs.
The government and SIFC must prioritise R&D for alternative fuel sources, swiftly reduce gas prices, and commit to an uninterrupted supply. It is the responsibility of the state to support the local businesses to sustain the economy of the country and it must take all the necessary steps to ensure we do not lose our share in the global marketplace.
