KARACHI: The Korangi Association of Trade and Industry (KATI) has strongly denounced the proposed increase in gas tariffs for industrial consumers, calling for urgent relief measures to alleviate the burdens faced by manufacturers.
Johar Qandhari, President of KATI, vehemently opposed the suggested hike in gas prices, urging both the Government and the Oil and Gas Regulatory Authority (OGRA) to reconsider their stance. Qandhari highlighted the immense challenges encountered by industrialists, emphasizing the detrimental impact of the proposed tariff hike on the already struggling industrial sector.
During a recent OGRA hearing, KATI representatives articulated concerns over the unfair burden placed on industrialists in subsidizing gas for domestic consumers. They pointed out critical issues such as line losses, theft, and Unaccounted-for Gas (UFG), which significantly contribute to the financial strain on industrialists. Rehan Javed, Chairman of KATI’s standing committee, formally submitted objections during the OGRA session, underscoring the urgency of finding practical solutions to prevent industrial bankruptcy.
Qandhari emphasized the urgent need for a revised tariff structure that prioritizes the interests of the industrial sector. He advocated for a substantial reduction in gas prices to Rs 500 per mmbtu, aiming to alleviate the financial strain on manufacturers and ensure their sustainability. Additionally, he urged OGRA to maintain domestic tariffs above the determined average price to prevent further losses in the industrial sector. Qandhari proposed the implementation of direct subsidies for low-income domestic consumers through programs like the Benazir Income Support Program (BISP) to ease the burden on the industrial sector.
Furthermore, Qandhari rejected any notion of gas blending that would favor the domestic sector over industry. He urged the government to swiftly lower tariffs for industrial consumers to safeguard the financial stability of manufacturers and protect the employment security of thousands of workers dependent on the industrial sector.
As the debate on gas tariffs and industrial relief measures intensifies, stakeholders eagerly await further developments. The outcome of these discussions holds significant implications for the future of Pakistan’s industrial sector and its contribution to the national economy. In the face of mounting challenges, KATI remains steadfast in its commitment to advocating for the interests of industrialists and seeking viable solutions to ensure their long-term viability and growth.