KARACHI:,,, SITE Association of Industry Chairman Younus M Bashir while expressing his concern over 14% enhancement in gas prices by OGRA, has said that the imposition of Gas Infrastructure Development Cess (GIDC) and exorbitant gas rates would cripple the industrial sector.
In a statement on Wednesday, he said levy of GIDC and increase in gas rates with effect from 1st July 2014 would put the industrialists in trouble.
He termed the rise in gas tariff as “last nail in the coffin” for the ailing industry that was the backbone of the economy. This unprecedented rise in gas tariff had pushed the industry in difficult situation. The recent spike in gas prices would have a spiralling effect on industrial sector, he added.
The chairman SITE Association also said that on the one hand, the government had announced textile package in the Federal Budget 2014-15, while on the other hand, it had increased the gas tariff which would hurt the textile sector.
He further stated that the gas tariff of Pakistan was already the highest in the region and any further increase in tariff, Pakistan’s exports of textile products would become incompatible in the international markets resulting in closure of large number of mills and considerable addition to unemployment in the country.
He apprehended that the enormous increase in gas prices would jeopardize the measures taken by the government in federal budget 2014-15 to boost industrial activities and would leave negative effects on their competitiveness.
He termed the rise in GIDC rate as punitive and unjustified and requested the government for an immediate review.
He strongly urged the Federal Finance Minister Ishaq Dar to withdraw the enormous increase in gas prices forthwith and reject the OGRA summary in this regard.