Industry plunged into crisis

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KARACHI: As the Sui Southern Gas Company Limited (SSGCL) claims that supply has been suspended to those units using gas for power generation, the industrialists said on Thursday that production has come to a standstill due to zero gas pressure in industries.

The Karachi Chamber of Commerce and Industry (KCCI) and industrial areas’ associations stated that almost all industries in the city were closed due to zero gas pressure, thus bringing the production activities to a complete standstill besides terribly affecting export-oriented and general industries.

In a joint statement, KCCI along with Site Association (SAI), Korangi Association (KATI), F.B. Area Association (FBATI), North Karachi Association (NKATI), Site Superhighway Association (SSAI) and Bin Qasim Association (BQATI) appealed to Prime Minister Shehbaz Sharif and Energy Minister Shahid Khaqan Abbasi to take notice of the situation and look into the possibility of supplying RLNG to SSGC for domestic usage as being done in the case of SNGPL so that the gas crisis being suffered by the industries in Karachi could be averted.

“We will shortly announce the future plan of action if relief was not provided immediately which may even lead to triggering across the board protests,” they said.

A meeting was held between SSGCL and federally constituted committee comprising representatives of industries from Karachi which suggested to either close down gas supply to industries for two days a week or carry out gas load shedding for eight hours a day so that SSGCL could maintain its line pack and the industries receive gas for 16 hours a day at required pressure. However, this unfortunately, was not done and later on, without taking the stakeholders on board, SSGC issued a notification/letter to industries about suspension of gas supply which contained several ambiguities as in the said letter, SSGC has issued a caution for future as well by saying that every year gas supply would remain suspended. Subsequently, it has also been notified that 50pc of gas supply to captive power plants would also be curtailed without explaining what would happen to those industries who do not have KE connection or any other source.

Chairman Pakistan Fashion Apparel, Jawed Bilwani said the gas crisis would further jeopardize already dwindling textile exports. He said textile exports had plunged by 15pc year on year to $1.4bn during October 2022 followed by 11pc drop month on month. However, textile exports in 4MFY23 stood at $5.9bn, down by one per cent year on year.

Deputy Manager Media Relations, SSGCL, Safdar Hussain said “gas to general industries is being supplied while gas supply to captive power plants only had been suspended from November 15 to February 28, 2023.”

Hussain said it is also clearly stated that gas availability would be ensured for nine months instead of 12 months every year.

In view of the widening demand and supply gap, especially with the drop in mercury, the company was implementing the government’s gas load management plan, giving top most priority to the domestic and commercial sectors.

Published in Dawn, November 18th, 2022

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