Hike in gas tariffs across-the-board is a deathblow: KCCI

KARACHI - Karachi Chamber of Commerce and Industry (KCCI) President Abdul Majid Haji Muhammad has termed the 18 per cent increase in gas tariffs by OGRA as one-sided decision and a deathblow to industrial, commercial and CNG sectors.
The chamber chief, in a statement, expressed deep concern against the decision of OGRA for allowing gas companies to increase gas tariffs across-the-board by 18 percent.
He strongly condemned and criticised the apathetic and slapdash attitude of the concerned quarters. He lamented that in the prevailing conditions, further increase in gas tariffs will worsen the situation, owing to further increase in CNG prices and ultimately commuters will be penalised and cost of transportation will high-rise.
Abdul Majid recalled that during the hearing of SSGC in OGRA, KCCI, raised high voice against the unjustified increase of tariffs allowed by OGRA to gas companies from time to time, while considering the case one-sided and not bearing in mind the point of views of other parties including industrial, commercial and domestic consumers.
Abdul Majid said that such actions will protect the vested interests of gas companies and their revenue generation will yield whereas the industry and commercial concerns are fatally stabbed with another deathblow which will increase the cost of production and doing business and will further narrow down their profitability.
He was of the view that such harsh decision without consultation and consent of stakeholders may result in widespread discontentment in the business community. The closure of industry, due to detrimental affect of high cost of production due to higher utility tariffs, will lead to flight of capital, massive unemployment and decline in the revenue of government, he added.
Abdul Majid maintained that the said increase will be a serious threat to the industry owing to highest-ever tariffs of utilities in the history of Pakistan. The cost of production/ manufacturing has gone exorbitantly higher absolutely due to unjustified policies of OGRA and NEPRA.
He stated that it was incomprehensible that on the one hand government contemplates to achieve the targets for nominal growth of 2.5pc while on the other pretext its inconsiderate and austere decisions to increase utility tariffs have already penalised the industry and posed as terrible threats for achieving the same.
At present, country is going through a worst economic crisis in terms of escalating cost of production/ manufacturing based on continuous rise on the utilities. The dollar has depreciated in the international market, oil prices have stabilised, interest rates and inflation started decreasing. In the wake of such indicators, it is unjustified to enhance the tariffs, he maintained.
Abdul Majid demanded that government must negotiate with foreign companies for favourable conditions and interests of the business community should at the forefront of OGRA decisions rather than that of foreign companies earning huge profits from Pakistan and sending foreign exchange to their respective countries.