KARACHI: There may be large-scale closure of industries, if 26 per cent increase in gas tariff proposed by the Oil and Gas Regulatory Authority (Ogra) is allowed by the government.

This was stated by business leaders at a press briefing arranged by the Korangi Association of Trade and Industry (Kati) here on Saturday.

The business leaders were concerned over the issue, and said they are perplexed because they have no alternative to gas.

Kati chairman Razzak Hashim Paracha said that most of jobs, for which the government is supposed to be responsible and even collects taxes from the industry, are presently being done and carried out by the industry.

When there had been prolonged power outages, the industry went for alternative sources by installing captive power plants.

Similarly, when it faced water shortage, it also made its own arrangement by boring or through private water tankers.

He further said that most of internal roads are made and developed by individual industrial units to facilitate their workers and foreign buyers, in case they like to visit the unit.

But unfortunately, Mr Paracha said the industry became helpless when gas problem, such as low pressure or shortage, was confronted. Moreover, it is needed to maintain power supply through captive power generation units.

Senator Abdul Haseeb Khan, former KATI chairman, said if gas tariffs is increased as per recommendations of the Ogra the viability of the industry would be threatened and it may even prove devastating.

He agreed with Mr Paracha that the industry had taken many responsibilities which are primarily the responsibility of the state or government, but unfortunately in order to keep the wheels of the industry running, the cost factor decisions had been taken by the industry.

The industry had been facing a lot of problems, and for each solution of the problem, it incurs extra cost, but as far as gas is concerned, the senator said it has no solution.

Answering to a question, Kati chairman said presently 70 to 80 per cent of the industry in his industrial area was running on captive power plants which are run on gas to keep the cost of production under control.