Karachi, September 03, 2015 (PPI-OT):Abdul Rahim Janoo, Acting President FPCCI has shown great concerns over the exorbitant increase of 23% in gas tariff from Rs.448 per MMBTU to Rs. 600 for general industry and power captive sector and 66% for fertilizer sector. He said that it would increase cost of production of indigenous products for export and rendering them un-competitive in the global market by eroding their competitiveness.
He further said that the industrial sector is also facing the exorbitant GIDC which cost to US$ 0.96/MMBTU, the current increase in the gas price will badly affect the industrial sector. He quoted the recent report of World Bank in which the tariff of gas and electric were critically discussed. He said that the concerned authorities should study the said report.
Rahim Janoo further said that according to new gas charges including GID Cess the industrial sector will pay US $ 6.72 per MMBTU which is 261% higher than Bangladesh where the prevailing gas charges are US $1.86/MMBTU.
Similarly our gas charges are higher by 83.6% from Sri Lanka where prevailing gas charges are US$ 3.66/MMBTU, Pakistan is higher by 44.2% from India where prevailing gas charges are US$ 4.66/MMBTU and Pakistan is higher by 55% from Vietnam where gas charges are US$ 4.33/MMBTU. He further said that that the Gas charges on Captive Power Plants including GIDC @ US$1.92/MMBTU is also higher by 312.9% in Bangladesh, 109.8% in Sri Lanka, 77.36% in Vietnam and 64.8% in India.
He further proposed that the government should consult first the trade and industry before formulating the trade related policies as it has to face brunt of the policies although the government frequently claimed that it would take business community on board.
Rahim Janoo, urged upon Prime Minister Nawaz Sharif to take immediate issue notice and instruct the concerned quarters to withdraw the decision by keeping the gas prices at previous level otherwise it will gravely hamper our exports.
For more information, contact:
M. A. Lodhi
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
B-1, Federation House, Main Clifton Road,
Tel: +92-21-35873691, 93-94