Gas Tariff HikeGas Tariff Hike

The recent decision by the caretaker government to increase gas tariffs has sent ripples of concern through Pakistan’s industrial circles, painting a grim picture of potential consequences. In­dustrial bodies are raising the alarm, warning of possible industrial closures, a surge in unemployment, and a hit to the export market if the decision isn’t promptly reversed.

Asif Inam, chairman of the All Pakistan Textile Mills Association (Apt­ma), expressed his concerns about the precarious situation of Paki­stan’s textiles and apparel exports. The surge in energy prices is put­ting the country at a disadvantage in the global market. Inam warns that if production costs continue to skyrocket, the textile and appar­el sectors could be on the brink of collapse, dealing a severe blow to an economy already facing its fair share of challenges. The skyrocket­ing energy prices not only jeopardize the survival of local industries but also put Pakistan at risk of losing ground to competitors like India, Bangladesh, and Vietnam. The high production costs make it increas­ingly challenging for Pakistani products to remain competitive in inter­national markets. This, in turn, could result in a significant drop in ex­ports, amplifying the economic challenges faced by the country.

Muhammad Kamran Arbi, the president of the SITE Association of In­dustry (SAI), expressed his disappointment at the caretaker govern­ment’s lack of support. The constant increases in petroleum, electricity and gas tariffs have made running an industry an unprofitable venture. The business community finds itself in despair as the caretaker govern­ment fails to breathe life back into the engine of the national economy.

Johar Qandhari, president of the Korangi Association of Trade and Industry (KATI), is urgently calling for a re-evaluation of gas prices and a quest for affordable energy alternatives. The current trajectory, if unchecked, could threaten the stability of Pakistan’s economy caus­ing a spike in unemployment, and a slowdown in industrial activities.

The caretaker government must act responsibly and engage in a di­alogue with industrial bodies to address the fears of the industrial community and find affordable solutions to sustain the competitive­ness of Pakistani products in the global market. Ignoring these con­cerns could set off a storm with consequences not only for industries but for the entire economic landscape of the country.

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