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Tag: gas supply

  • NKATI expresses concerns over gas disconnection

    NKATI expresses concerns over gas disconnection

    KARACHI: Faisal Moiz Khan, President, North Karachi Association of Trade & Industry (NKATI), while expressing deep concern over the gas disconnect of non-export, general industries, has demanded the government to continue gas supply with required pressure to industries.

    In a statement, Faisal Moiz Khan said that Karachi should not be punished for paying 54 per cent of the country’s exports and 70 per cent of its revenue. If SSGC disconnects the gas supply to non-export, general industries then factories will be locked and the SME sector will be destroyed.

    “Karachi has always played a vital role in the development of the country and is still playing a positive role in spite of all difficulties, be it for strengthening the national economy or promoting exports and providing vast employment opportunities”, he added.

    He raised the question of where is the wisdom to shut off the gas of ordinary industries? The SSGC has no authority to disconnect industrial gas. On the contrary, the government should help the industries to survive in the corona economy so that the country can get back on its feet economically.

    NKATI president further said that where is the justice for Sindh not getting gas? Sindh has the first right to the gas reserves of Sindh. Therefore, first of all, while fulfilling the gas needs of the people of the province, gas should be supplied to all industries with full pressure without any discrimination and then the remaining gas to be given other provinces.

    Faisal Moiz Khan stated that the industrial community would not tolerate this injustice under any circumstances. The government should stop discriminating against Karachi and the resources of the province should be utilized to meet the needs of the province.

    SITE industrialists condemn gas suspension
  • SITE industrialists condemn gas suspension

    SITE industrialists condemn gas suspension

    KARACHI: Abdul Rasheed, President, SITE Association of Industries (SAI), has criticized the suspension of gas supply to all non-export general industries.

    In a statement issued on Monday, while totally rejecting SSGC’s imprudent decision to suspend gas supply to all non-export general industries, he demanded that instead of doing so, the SSGC should carry out staggered gas holidays along with better load management which would ensure non – export general industries will continue to run according to the given schedule.

    READ MORE: SITE Association signs MoU for tax return filing

    SAI president said that SSGC’s management which appears to be unaware of what was happening and was unable to control the situation, must go for staggering holidays and better load management in order to provide relief to the perturbed business & industrial community who are providing livelihood to millions of people.

    Rasheed also questioned the policy to prioritising gas supply to domestic consumers over job security. “What good is gas availability for an unemployed person,” he questioned.

    READ MORE: Export orders under threat as gas supply to industries suspended

    He urged the government to no take populist decisions and understand the negative impact of shutting down manufacturing activity on employment and inflation.

    Abdul Rasheed said the exemption given to export sector would not provide the desired results as general industries supply essential raw materials to export-oriented industries hence are an integral part of the supply chain must stay operational otherwise the export sector even with gas would not be able maintain the pace of exports.

    Terming suspension of gas supply to non-export general industries as detrimental, he said, that SITE Association will not stay silent and we will use all available options including a huge sit-in outside SSGC’s Head office until relief is provided to all industries without any discrimination.

    READ MORE: SITE Association hails FBR chairman’s no bank account freezing decision

    SAI president was of the opinion that gas suspension to general industries would not only result in increased unemployment but would also fuel massive inflation due to shortage of essential goods in the market. “With inflation already at 18% YoY, any supply side disruption would make the situation untenable for the masses as supply side shortages would jack up prices further eroding the purchasing power of the lowest strata,” he added.

    Rasheed further said that Imran Khan did not shutdown industries during COVID 19 for these very reasons while SSGC has done the same without giving heed to Prime Minister’s clear policy on the matter.

  • FPCCI expresses annoyance over gas suspension

    FPCCI expresses annoyance over gas suspension

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed annoyance over suspension in gas supply to industrial sector.

    Mian Nasser Hyatt Maggo, President FPCCI, in a statement on Friday expressed his profound concerns over yet another gas supply suspension for 72 hours for the industrial areas of Sindh and Balochistan.

    It will bring many export-oriented industrial units to a halt and ensuing losses, he added.

    FPCCI Chief pointed out that after every few months the industrial sector has to endure the prolonged gas supply suspensions; despite repeated promises and assurances given to the business, industrial and trade community of Pakistan from the platform of FPCCI.

    Mian Nasser Hyatt Maggo maintained that governments all over the world protect the industries from unplanned gas and fuel outages; and, also help them ward off the adverse effects, if the suspensions occur.

    FPCCI President forewarned the government authorities that during winters there could be an unprecedented gas shortage and the country’s exports can be gravely impacted; and, the government should sit down with the business community at the earliest to chalk out a plan to protect the export-oriented industries from inevitable gas shortages.

    Mian Nasser Hyatt Maggo, as President FPCCI, has reiterated his full support to facilitate consultative process between government authorities and the business community before the winter starts. FPCCI wants to support the government’s vision to enhance Pakistan’s exports in a fast-paced; yet, sustainable manner, he added.

    Business community rejects hike in oil prices
  • FBR tightens noose around electricity, gas consumers

    FBR tightens noose around electricity, gas consumers

    ISLAMABAD: The Federal Board of Revenue (FBR) has issued 650,000 notices to consumers of electricity and gas, who are not in the tax net, in its efforts to enhance tax compliance.

    The FBR said that data has been obtained from DISCOs and Gas Companies for broadening of tax base. More than 650,000 notices have been issued on the basis of data obtained from DISCOs and in lieu of these notices 129,541 returns have been enforced so far.

    The FBR has undertaken unprecedented enforcement measures to ensure filing of returns. Resultantly, the number of income tax return filers for TY2020 has crossed 3.1 million.

    Tax Asaan, has been launched which provides basic verification features like ATL, Online NTN/STRN inquiry, exemption certificates and sales tax registration. Facility for filing income tax returns for salaried class has also been included in the application.

    In order to develop 360 degree view of tax payers, data sources like banks, vehicles and real estate transactions have been captured and a Data Bank has been developed. Based on this data bank, notices to more than 200,000 high net-worth un-registered persons have been issued.

    To ensure proper declaration of sales by retailers and to realize due revenue from them, FBR has initiated the integration of all sales outlets of tier-1 retailers with FBR’s central computerized system. The system shall ensure that all sales are reported in real-time to FBR and are duly accounted for in monthly sales tax returns of such retailers.

    The scheme was initially launched for textile and leather retailers last year which has now been made mandatory for all tier-1 retailers with effect from 15th December 2019.

    The field offices have been directed to undertake surveys in their respective jurisdictions and ensure integration of all tier-1 retailers.

    In order to prevent leakage of revenue, under-reporting of production and sales, and to ensure proper payment of FED and Sales Tax on the manufacture and sale of specified goods/ products, FBR has initiated the implementation of Track and Trace System for specified goods/ products i.e. Tobacco, Cement, Sugar, Fertilizer and Beverages imported into or manufactured in Pakistan.

    Sectorial analysis of huge business concerns has been conducted across the country by Assessment & Processing Units in all field formations of IRS. Sectors like cement, sugar, cotton and tobacco remained under focus. Legal action has been initiated against the defaulting units.

    Legal actions (attachment of properties, arrests and seizures) has been made against huge tax-defaulters to create deterrence against tax-evaders.

    Establishment of Inland Revenue Enforcement Network (IREN) to check smuggling and counterfeit products. Inland Revenue Service and Pakistan Customs Service have joined hands for anti-smuggling field intelligence exercise.

    FBR has launched Maloomat (tax profiling system) on its web portal, containing data of 53 million citizens, giving access to the filers and non-filers to the information about their assets and bank accounts available with FBR.

    Tax rates on electricity consumption during 2021-2022
  • PM directs finalizing tight gas policy by next month

    PM directs finalizing tight gas policy by next month

    ISLAMABAD: Prime Minister Imran Khan on Thursday directed authorities to finalize Tight Gas Policy by end of September 2021.

    The prime minister chaired a meeting to discuss the tight gas resources.

    The meeting was attended by Federal Ministers Shaukat Fayyaz Tareen, Hamad Azhar, Asad Umar, Special Assistant Tabish Gohar and concerned senior officials.

    The meeting discussed in detail the potential resources of Tight Gas in the country.

    The meeting was informed that Pakistan is expected to have huge reserves of tight-gas. These reserves could help reduce the country’s dependence on expensive imported LNG.

    The prime minister directed that the Tight Gas Policy be reviewed and finalized by the end of September 2021.

  • Gas supply suspension cripples industries, halts production

    Gas supply suspension cripples industries, halts production

    KARACHI: The Karachi Chamber of Commerce & Industry (KCCI) and its affiliated industrial town associations have shown deep distress towards non-supply of gas to industries of Karachi for the last 14 days since 11 June, 2021 with ZERO gas pressure which has crippled industries and halted production that will ultimately lead to huge losses.

    According to a statement issued, the supply of gas has been closed in the name of annual turnaround (ATA) of Kunnar Pasaki field. Previously such disruption was caused due to ATA of Gambat field. All such ATA / maintenance must be planned at least six months and intimated to all concerned promptly. If SSGC as per its claim was facing gas shortfall of 200-250 mmcfd from Kunnar-Pasakhi Deep (KPD) gas field and Engro Terminal, this shortfall could have been surmounted through RLNG for the time being but instead of doing so, they announced abrupt suspension of gas supplies to industries which was totally unacceptable as it would prove disastrous not only for the business community but also for economy and the public.

    KCCI appealed Prime Minister Imran Khan to order SSGC to refrain from suspending gas supply and also order a probe into the massive gas mismanagement as the industries in Karachi, which were already going through unbearable circumstances, cannot afford any interruption in their production activities due to suspension of gas supplies.

    Despite of the fact that the Government has accorded priority in supply of gas to export sector, the export industries of Karachi are also deprived of gas. Exporters are fearing excessive delays in export shipments and will lead to shipment by Air or cancellation of orders. Whereas, the export shipment of 40 feet container by sea to USA costs USD 8,400/- while the same shipment by air costs USD 93,000/- which is equal to the total cost of said consignment of 40 feet container. In this manner, the export industries are facing colossal financial losses and shall be bankrupted leading to permanent closure and massive layoffs. Needless to mention here that more than 40 allied industries which include general industry are also associated with export industries which provide them goods and services.

    It is pertinent to note that Karachi contributes to around 60 per cent in national exports. Due to the situation if 10 per cent export is affected it means 5 per cent decline in national export. The estimated losses caused to national exports on daily basis comes to around USD 44 million (PKR 7 billion). As per the Government’s gas priority policy five export sectors would be treated on a par with the power sector in gas supplies. In contravention to its own policy, the Government is providing gas to power company of Karachi while export sector has been deprived to gas.

    KCCI is surprised as to why SSGC has disrupted gas supply on account of Annual Turn Around of Kunnar field on working days which must have been done during Eid Holidays when there is no industrial usage of gas. KCCI fail to understand why such incidences happen repeatedly only in Karachi in every 3-4 months. Whether such attempts on part of the Government are deliberate to compel the industries of Karachi to shift abroad? Why should the export industries of Karachi may bear the brunt of the mismanagement caused due to ill-planning on part of the Ministry of Petroleum and SSGC?

    KCCI appealed to the Prime Minister of Pakistan and Federal Minister of Energy to take immediate notice of Zero Pressure of gas to industries of Karachi and intervene to resume gas as quick as possible so that the industries and export must not suffer further in the best interest of economy, exports and foreign exchange earnings.

  • Gas supply suspension: NKATI appeals PM to save industry

    Gas supply suspension: NKATI appeals PM to save industry

    KARACHI: Faisal Moiz Khan, the President of the North Karachi Association of Trade & Industry (NKATI), has issued a fervent appeal to Prime Minister Imran Khan to intervene and rescue Karachi’s industries from the brink of disaster.

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  • Export commitments to be missed on gas supply curtailment: APTMA

    Export commitments to be missed on gas supply curtailment: APTMA

    KARACHI: All Pakistan Textile Mills Association (APTMA) in a statement on Thursday said that industries will fail to meet export commitments due to 50 percent reduction in gas supply.

    Zahid Mazhar, Chairman, APTMA, Sindh-Baluchistan Region demanded the government to restore full supply of gas to the industries located in the province of Sindh and Balochistan as the industries in these province can’t operate and fulfill their export commitments at 50 percent load supply.

    Mazhar said that the province of Sindh and Balochistan are producing about 84 percent of the system gas and consuming only 39 percent of the gas produced in the country, even then the industries of Sindh province are denied of their Constitutional Right guaranteed by the Constitution of Pakistan.

    He said that the gas being produced in Sindh should first be supplied to the province and only after fulfilling the requirement of Sindh and Balochistan, surplus gas should be passed on to the other provinces in line with Article 158 of the Constitution of Pakistan.

    Mazhar further said that the textile industry units located in the province of Sindh are mostly export oriented units and these units attract priority in the allocation of energy including gas supply.

    As this is the peak season and any disturbance or short supply of gas would affect the timely shipments of export commitments resulting in not only decline in export earnings and loss of foreign buyers of textile products of Pakistan but would also result in decline in production and revenue of the government.

    He said that the curtailment in gas supply by 50 percent in addition to low gas pressure has completely disturbed the production-lines, resulting in decline exports and causing damages to industry’s costly plants and equipments.

    He further said that curtailment in gas supply is against the assurance given by the present government of Imran Khan of continuous and uninterrupted supply of energy both gas and electricity specially to the export oriented industry like textiles which is earning more than sixty percent of the much needed foreign exchange through exports.

    It is also against the government policy of industrialization and export led growth, he added.

    He said that the curtailment in gas supply by 50 percent to the Sindh and Balochistan based industry that makes about 52 percent of the country’s total exports is resulting in loss of foreign exchange and revenue.

    He said production of export oriented industries has shrunk since the export sector has been compelled to work for 50 percent of its capacity.

    In other countries governments give priority to their export oriented industry in supply of gas and energy, whereas domestic and commercial sectors are provided with LPG or LNG. On the contrary in Pakistan, our precious natural gas is being supplied to domestic and commercial sectors at the cost of industries.

    Mazhar urged the Federal and Provincial Governments and the gas utility to look into this issue on urgent basis and to ensure continuous and uninterrupted gas supply otherwise the industries would be compelled to close their operations which will create not only irreparable losses to the economy of Pakistan but would also create law & order situation due to unemployment of large number of workers employed in these industries.

  • KCCI shows concerns over gas shutdown to industries

    KCCI shows concerns over gas shutdown to industries

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has expressed serious concerns over abrupt shutdown of gas supply to industries and said that such closure caused immense losses to the tune of billions of rupees.

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