Industries criticise hike in gas, power tariffs

Karachi: Industry bodies are planning to finalize a joint strategy soon to take the issue of 18 per cent increase in gas prices and last week's power tariff walk with the relevant authorities.
She said a number of units may include the following three months, since it might not be able to absorb shocks.
Korangi Association of Trade and Industry president Razzak Hashim Paracha told Dawn that after an increase in power and gas tariffs, at least 20-25 percent of units, from 4500 in Korangi area, would definitely be on the brink of closure in the next three months than they would be able to absorb the shock.
He said the token strike or closure of units in protest of the problem would not solve.
The association, with the assistance of other commercial bodies a plan to take up the matter with the government would finalize, he said.
Site Association of Industry Chairman Salim Parekh told Dawn that at least 300-400 units of hosiery, textile, weaving, the geometry, etc., already in Site Industrial area closed during the past two years, while more closures would be in the coming months witness.
But he was in favor of holding talks with the ministry concerned to resolve the problem.
The Site industrialists would also discuss the negative impact of next week and try to find the time, especially in the textile sector as a minister has hit hard due to rising yarn prices, the export of cotton, 0.5 percent increase in refinance rate increases in terminal handling charges and a lack of practical implementation of the decisions taken in the textile and trade policy.
He said that if the government has a rescue package can apply for the fertilizer industry, it should be the same treatment should be extended to industries, especially textiles and value-added sectors.
Salim said that a further increase of 18 percent would adversely affect the manufacturing sector because it is under pressure from higher costs of doing business and its survival has become difficult because the government is to raise prices of utilities gas, electricity, etc. off and on.
He told the hearing fixed by Ogra to input from the consumer is only a formality.
Karachi Chamber of Commerce and Industry President Mohammad Haji Abdul Majid told Dawn that the KCCI had planned a meeting of affiliated associations and trade bodies after Eid, a common strategy to prepare for entry to the matter with the government.
He further said that in the trial of SSGC in Ogra for the proposed reduction of gas and proposed increase in fares, KCCI's representative, Dr Ahmed Kamal Qazi has transferred the discussions of the KCCI, but in vain.
He said the government should negotiate with foreign companies for favorable conditions and the importance of the business community must be protected in the Ogra decisions.
President F.B. Area Association of Trade and Industry Ismail Shahid said that 20-30 percent and small-sized units were in the past six months, closed down because they could compete due to surging costs of production.
He said that more units will be closed after the recent power and gas tariff increases. He said the association has no plans to call a strike, but a joint strategy will be followed to access the anti-industry decisions with the government.