FPCCI concerned over increase in gas tariff for industries

President FPCCI Says increase of 23% in gas charge for industry, power captive plants & 66% for fertilizer sector will further hamper the export

KARACHI – Acting President Federal of Pakistan Chambers of Commerce and Industry (FPCCI) Abdul Rahim Janoo while expressing concerns over the exorbitant increase of 23 per cent in gas tariff from Rs 448 per MMBTU to Rs 600 for general industry and power captive sector and 66% for fertilizer sector has said that it would increase cost of production of indigenous products for export and rendering them noncompetitive in the global market by eroding their competitiveness.

In a statement issued here on Thursday, Abdul Rahim Janoo 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 adversely 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.

He said that according to new gas charges including GID Cess the industrial sector will pay $6.72 per MMBTU which is 261 per cent higher than Bangladesh where the prevailing gas charges are $1.86/MMBTU. Similarly our gas charges are higher by 83.6 per cent from Sri Lanka where prevailing gas charges are $ 3.66/MMBTU, Pakistan is higher by 44.2 per cent from India where prevailing gas charges are $4.66/MMBTU and Pakistan is higher by 55 per cent from Vietnam where gas charges are $4.33/MMBTU. He further said that that the gas charges on Captive Power Plants including GIDC $1.92/MMBTU is also higher by 312.9 per cent in Bangladesh, 109.8 per cent in Sri Lanka, 77.36 per cent in Vietnam and 64.8 per cent 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.

He urged the prime minister 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 country’s industrial exports.


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