LAHORE, July 3: Lahore Chamber of Commerce and Industry President Mohammad Ali Mian said on Thursday that industrialists would be left with no option but to close down their units, if increase in gas tariff was not withdrawn.

In a statement issued here on Thursday, the LCCI president described the 31 per cent increase in gas prices and 68 per cent increase in captive power generation a hard blow to the already hard-pressed industry, and said that gas and power were the basic inputs for industry and hike in their prices would not only increase cost of doing business, but would also make Pakistani merchandise uncompetitive in the global market at a time when exports are already on the decline and trade deficit has gone up to $20 billion in 2007-08.

He said that the industry was already on the verge of closure due to hike in prices of petroleum products, raise in GST and imposition of 10 per cent withholding tax on electricity and now the decision to increase gas tariff for general industry and for captive power generation of export-oriented industry amounts to closing the local manufacturing sector and turn Pakistan into a trading nation.

He said that the captive power producers were mostly exporters who had been ditched twice by the government firstly when they abandoned their high cost diesel and furnace-run generators due to high cost and invested heavily in gas -run generators.

Now after the unprecedented increase in gas tariff, the electricity produced through these means would be at par with Wapda tariff.

He said 70 to 80 per cent textile and other Large Scale Manufacturing Units had their own captive power generation and the recent measure would force them to become sick units besides creating a new generation of unemployed workforce.

The LCCI President said that such unilateral decisions were bound to bounce back because these were being taken by ignoring the ground realities and without consulting the stake-holders.

He appealed to the prime minister to intervene and order withdrawal of the gas tariff increase before the collapse of the industry under its pressure.