- SSGC informed that business will be closed from November 15 to February 28.
- Business associations warned of mass layoffs and closures.
- “Gas outages can’t be good for the economy,” he says.
KARACHI: Sui Southern Gas Company Limited (SSGCL) has sent. Gas shut off More than three months’ notice over the winter to the city’s industries, which they rejected by saying that the gas shutdown would lead to massive layoffs and business closures, News reported on Sunday.
Karachi Chamber of Commerce and Industry (KCCI) and seven other industrial town associations said in a joint statement, “Industries are in a state of shock after receiving the gas shutdown notice from SSGCL from 15 November 2022 to 28 February 2023. ” Statement on Saturday.
The KCCI said it had formed a committee on the gas issue with town associations – including SAI, KATI, LATI, FBATI, NKATI, SSHAI, and BQATI – which had highlighted the issue. Gas supply advance to the government.
“Give Gas shut off May not bode well for the economy, especially this year, as the government has made no specific arrangements to buy RLNG to inject into the system.
The committee said it expected the government to take appropriate steps to ensure gas supply to city industries instead of a complete gas shutdown, which would lead to a sharp drop in exports and revenues, industrial closures and retrenchment.
The industries said they had submitted a different proposal to a committee on gas matters set up by the government, and had suggested ways to deal with the growing gas shortage in winter. He added that none of them were covered in issuing notices to industries.
According to KCCI, their committee had given the idea to the government to shut down gas supply for 12 hours twice a week in winter.
It said that a proposal was made for gas load management on a rotation basis so that industrial production is not stopped completely and it was also discussed to shut down 50 per cent of captive power plants.
‘Quite the opposite’
It continued that he had further suggested that the captive power plants of those industries which have adequate supply of electricity and power from Karachi-Electric should be closed.
It was also discussed that the use of gas for CPPs would be stopped while ensuring gas for running industrial boilers. In addition to this, other energy conservation measures should also be adopted, the joint statement said.
“The gas shutdown notices issued by SSGC are also in stark contrast as it does not say how the company will supply gas to export-oriented industries in winter, which is a priority sector.”
Rejecting the gas cut plan of SSGC, KCCI and seven associated industrial town associations asked Prime Minister Shehbaz Sharif and Sindh Chief Minister Murad Ali Shah to intervene in the matter immediately.
If we compare it with Pakistan, Bangladesh has prioritized by supplying 961 mmcfd to industries which is 34% of the total gas supplied to industries while in Pakistan gas supply to industries is only 18 percent with a supply of 721 mmcfd. Only.”
According to KCCI, Karachi’s export industries contribute more than 54% to national exports while Karachi’s general industries also meet more than 50% of national needs.
The joint statement called on the government to ensure smooth running of the wheels of industries and save them from crisis by presenting a reasonable gas supply plan to the industries.
He also claimed that the SSGC had taken the government committee into confidence and had issued the gas shutdown notices.