Daily Times

The Karachi Chamber of Commerce & Industry and its affiliated industrial town associations have demanded Prime Minister Imran Khan to order a probe into the massive gas mismanagement as supply of gas to industries of Karachi has been suspended for the last 14 days, which has halted production.

According to a statement issued on Friday, the industries in Karachi, which are already going through unbearable circumstances, cannot afford any interruption in their production activities due to suspension of gas supplies.

The KCCI said if Sui Southern Gas Company (SSGC), as per its claim, is facing gas shortfall of 200-250 mmcfd from Kunnar Pasakhi Deep (KPD) gas field and Engro Terminal, this shortfall could have been surmounted through RLNG for the time being but instead of doing so, they announced abrupt suspension of gas supplies to industries which is totally unacceptable as it would prove disastrous not only for the business community but also for economy and the public.

Despite the fact that the government has accorded priority in supply of gas to the export sector, the export industries of Karachi are also deprived of gas. Exporters are fearing excessive delays in export shipments and will lead to shipment by air or cancellation of orders. Whereas, the export shipment of 40 feet containers by sea to the USA costs $8,400 while the same shipment by air costs $93,000.

The statement said that Karachi contributes to around 60% in national exports. Due to the situation if 10% of the exports are affected, it means a 5% decline in national exports. The estimated losses caused to national exports on a daily basis comes to around $44 million.

The KCCI said that it is surprised as to why SSGC has disrupted gas supply on account of Annual Turn Around of Kunnar field on working days which must have been done during Eid holidays when there is no industrial usage of gas. The KCCI appealed to the prime minister and federal minister of energy to take immediate notice of zero pressure of gas to industries and intervene to resume gas as quickly as possible so that the industries and export must not suffer further in the best interest of economy, exports and foreign exchange earnings.