KARACHI: While slamming the Sui Southern Gas Company Ltd’s (SSGCL) announcement of stopping gas supply to captive power plants (CPPs) from December to February 2019 period, industrialists have termed the decision tantamount to shutting down their factories for three months.

President Site Association of Industry Saleem Parekh on Tuesday said the SSGCL issued gas closure notices to units with CPPs during winter without realising the share of industrial sector of Karachi which contributes 30 per cent to the country’s overall exports. “This move will bring the industry at a standstill,” he feared. Already facing low pressure and closure of gas on Sundays, he said these notices have created panic among factory owners.

The period from November to March is very crucial for exporters due to Christmas season and other religious festivals. Due to imposition of 25pc additional duty on Chinese exports by the US, Pakistani industries are expecting to receive large numbers of export orders.

Parekh said that, as per article 158 of the Constitution, Sindh has a right to receive gas being a resource generating province.

Sindh produces 73pc of the country’s total gas and uses only 29pc, which means it is already contributing to the national resource reserve.

It was decided and agreed under ex-president General Musharraf’s regime that the province would get a 50pc share of the total exploration, which today stand at 2,900mmcf while only 1,200mmcf is provided to it. As per the agreement Sindh’s share comes to 1,450mmcf.

On one hand, the government is trying to bridge the trade deficit and increase exports through corrective measures, yet on the other, the gas utility is taking the decision of a three-month long closure, he added.

He urged the federal government to immediately look into this matter and withdraw this notice to ensure continued industrial growth of the province.

Published in Dawn, October 31st, 2018