KARACHI, Dec 26: The export-oriented and value-added textile industry in the province of Sindh in general and Karachi city in particular are bound to face great hardships due to 17 per cent hike in gas prices effective from January 1, 2006.
In a statement issued on Monday, Patron-in-Chief of North Karachi Association of Trade and Industry (NKATI) Capt A Moiz Khan vehemently stressed that gas was an indigenous utility used for power and running of industry, therefore, it should not be used for making large profits.
He said the new price of gas evidently reflected that the industry in Sindh would pay substantially more than the industry in Punjab.
The continuous increase in rates of gas and other utilities, Capt Moiz said had increased the cost of production of export goods which ultimately render our exporting industry uncompetitive in the world market.
He appealed the president and the prime minister to come up with a workable solution and suggested that business leaders from Sindh should be included in the corporate structure of oil and gas companies as well as Ogra.
Our reporter from Islamabad adds: The Pakistan Cotton Fashion Apparel Manufacturers and Exporters Association has urged the government to withdraw the decision of 15 per cent increase in gas rates.
The association in a letter sent to commerce minister here on Monday said that the increase in gas rates would seriously affect the competitive edge of the apparel in the international
market.
“Our neighbouring countries and our main competitors China and India are offering export refinance to their apparel exporters at much lower rates,”, said Dr Shahzad Arshad, chairman of the association.
Mr Arshad urged the government to withdraw the increase in gas tariff to save the apparel export industry, which is labour-intensive, from slipping into crisis in greater national interest. The association also demanded that the export refinance rates should be brought down to three per cent from the nine per cent.
