Karachi: Mr. Muhammad Yasin Siddik, Chairman, Sindh-Baluchistan Region of APTMA has strongly opposed decision of the government for increasing gas tariff by 14 percent from 1st January 2012.
In a statement issued to the press, Mr. M. Yasin Siddik said that increase in gas tariff will affect all sectors and also intensify the circular debt problem which is already at an alarming position of Rs. 444 billion as on 6th December 2011 and to avoid this situation government has to increase power tariff accordingly.
Chairman – Sindh Baluchistan Region of APTMA said that gas tariff for industrial consumers has already been increased by 34 percent till to-date since 1st July 2009 and further increase of 14 percent by 1st January 2012 will aggravate this situation and the overall effect will be about 53%. The industry, especially export oriented industry like textile cannot bear such increase in gas tariff as the industry cannot export inflation and will become uncompetitive.
Mr. M. Yasin Siddik while commenting on the news published in print media that the government is going to increase gas tariff from 1st January 2012 held it unwise move as it would further increase the cost of doing business, hit industrial production and affect exports. He further said that such increase in the tariff will not only be counterproductive but also largely disturb and dislocate the entire industry. In order to stabilize the industry particularly the textile industry from spinning to processing, government should not take such harsh decisions.
He feared that industry would gradually be failing to meet the export orders due to such inexpedient steps resulting in hard earned global markets would be slipping out of their hands. He further said that the textile sector is a largest employment provider would badly suffer due to these increases as more than 40 percent of textile industry has become uncompetitive due to gas load-shedding. He viewed that industry has the potential to meet the target of exports fixed by the Government provided issues concerning to cost of doing business etc. are taken care of by the Government.
He demanded the government to take sustainable measures to provide uninterrupted gas and electricity supply to the industry. He stressed that government must always keep in view the ground realities and ensure efficient working of the industry. He further strongly urged the government to abstain its decision to increase gas prices.
For more information, contact:
All Pakistan Textile Mills Association
APTMA House, 44-A,Lalazar,
Off: Moulvi Tamizuddin Khan Road,
Karachi -74000, Pakistan.
Web Site: www.aptma.org.pk