Gas price issue irks exporters

Published December 16, 2005

FAISALABAD, Dec 15: Enhancement of gas rates by Oil and Gas Regulatory Authority would adversely affect exports. This was apprehended by All Pakistan Textile Processing Mills Association (APTPMA) chairman Dr Arshad Vohra and regional chairmen Shabbir Ahmad (Faisalabad), Abdul Sattar (Karachi) and Haji Abdul Rashid (Lahore), Hafiz Bashir Ahmad, APTPMA (Gujranwala) vice-chairman and Mr Bashir Mahmood, in a joint press statement here on Thursday.

They said according to a recent news item, OGRA has permitted SNGPL to enhance the gas prices by Rs26.9 per MMBTU proportionate to the increase in raw oil and furnace oil prices. OGRA has invited objections against proposed enhancement from the public till Dec 22, 2005.

Denying the contention of OGRA, they argued that there was no denying the fact that gas had assumed the status of a basic raw-material in the dyeing, bleaching, printing and finishing of textile fabrics in Pakistan while the exporters of textile fabrics have been confronted with a tough competition in the global market with the introduction of WTO and cessation of quota regime. Even the slightest raise in their prices at this critical juncture would, therefore, oust them from the world market.

They said the agriculture sector in the US and EU was being provided billions of dollars in subsidy, while the situation in Pakistan was reverse. subsidy on gas has been provided only to the fertilizer industry for being an agro-based sector. Textile processing sector too, which was basically an agro-based sector, should be allowed a similar facility by the government, they added.

They demanded that the president and the prime minister should stop OGRA from the proposed enhancement enabling Pakistani textile exporters to meet the WTO challenges.

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