Suspension of gas causing heavy losses: FPCCI

Published June 26, 2021
The FPCCI president questioned why such gas closures repeatedly happened in Karachi every three to four months. — APP/File
The FPCCI president questioned why such gas closures repeatedly happened in Karachi every three to four months. — APP/File

KARACHI: The country’s exports are facing a daily loss of $44 million due to the suspension of gas supply to export-oriented units by the Sui Southern Gas Company Ltd (SSGCL) since June 11, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said on Friday.

In a letter addressed to Federal Minister of Energy Hammad Azhar, FPCCI President Mian Nasser Hyatt Magoo said the industry was faced with cancellation of orders and delay in shipments due to the suspension of gas supply.

“Exporters are in a fix owing to the high freight charges of $8,400 per 4 feet container for shipment to the US while the same shipment by air costs $93,000 which is equal to the total cost of said consignment of 40 feet container,” he said.

In this situation, exporters are facing colossal financial losses which may lead to the closure of industries and huge workers’ layoff, the FPCCI chief warned.

“The supply of gas to industries has been switched off in the name of annual turnaround (ATA) of Kunnar Passaki Field. Previously, such gas disruption was attributed to the ATA of the Gambat Gas Field.

The ATA and maintenance of gas fields should have been communicated to the industries six months back,” he said.

The FPCCI chief highlighted that Karachi contributed around 60 per cent to the country’s exports. “Under the current situation if 10pc exports from Karachi are affected, then this would cause a 5pc drop in national exports,” he said.

The SSGCL should have avoided ATA of gas fields in working days and this should have been initiated during Eid holidays when there is no industrial usage of gas, he added.

The FPCCI president questioned why such gas closures repeatedly happened in Karachi every three to four months.

Published in Dawn, June 26th, 2021

Now you can follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Blatant Islamophobia
Updated 30 Jan, 2023

Blatant Islamophobia

Muslim extremists and terrorist outfits are emboldened by hateful acts.
Modern slavery
30 Jan, 2023

Modern slavery

MODERN slavery is a wide-ranging term that can encompass a multitude of scenarios. Common to all of them, however, ...
Remarkable Sania
30 Jan, 2023

Remarkable Sania

BRINGING to a close a career in which she smashed stereotypes, Sania Mirza delivered almost the perfect ending in ...
Losing grip
Updated 29 Jan, 2023

Losing grip

The state and the government are responsible for providing Imran with the security he deserves as a former prime minister.
Telling silence
Updated 29 Jan, 2023

Telling silence

THE silence of the Sindh government over the recent exposé in this paper about Karachi’s water tanker mafia ...
Palestine escalation
29 Jan, 2023

Palestine escalation

THE fire of conflict once again threatens to envelop the land of Palestine, as the growing cycle of violence refuses...