FAISALABAD, Dec 19: The Federation of Pakistan Dry Ports has expressed concern over increase in gas prices from Jan 1, and urged the president and the prime minister to take stock of the situation and direct the Oil and Gas Regulatory Authority (OGRA) not to allow this increase.

Talking to newsmen here on Monday, federation chairman Shahzad Ali Siddiqi said any increase in the gas prices would be a blow to textile and other industries as it would ultimately increase the cost of production and thus hamper exports.

He said exporters were already bearing the brunt of high electricity tariff, gas prices and heavy taxes/duties, and after a further increase in gas prices they would not be able to compete in the world market under the WTO regime.

He said the OGRA authorities had already allowed SNGPL and SSGCL to enhance the gas tariff for all categories of consumers by 18.57 per cent during the last one year (July 2004 to July 2005). After approval, the gas prices were increased by 5.7 per cent on July 1, 2004; 8.25 per cent on Feb 2, 2005; and 5.52 per cent on July 1, 2005, for all industrial consumers.

The value-added and export-oriented sectors of the textile industry in Pakistan accounted for more than 65 per cent of export earnings, and any increase in gas prices would put an adverse effect on the cost of production, he said.

He said if this decision was not withdrawn forthwith, it would oust the Pakistani textile exporters from the international export market.

He said if the increase was inevitable, it should not be levied on export-oriented industries.