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Home Op-Ed Editorial

Industry without gas

byCustoms Today Report
13/11/2014
in Editorial, Op-Ed
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The federal government has decided to suspend gas supply to industries and CNG stations in Punjab for four months from November 15 to March 15. According to load management policy of the Federal Petroleum Ministry, the decision has been taken in view of the shortage of gas which will only be supplied to domestic consumers in the province.

The Lahore Chamber of Commerce and Industry (LCCI) has rejected the decision on the ground that it will further deteriorate the industrial sector in Punjab, as thousands of workers will be rendered jobless and billions of dollars export orders will be cancelled. LCCI present Ejaz A Mumtaz has termed the suspension of gas supply a well-planned conspiracy against the government and a simple case of discrimination against Punjab. He also fears that unemployment will create anti-government sentiments among the people and suspension of gas will not only cause heavy losses to the industrial sector, but will also curtail the government revenue.Another matter of concern is that the affected businessmen will not be able to pay their dues and fulfil their liabilities in this situation. The industrial sector is given priority all over the world, but every successive government in Pakistan tries to put the cart before the horse. However, it is heartening to note that the Sui Northern Gas Pipelines Limited has announced incessant gas supply to the textile industry in Punjab.

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Earlier, All Pakistan Textile Mills Association Chairman SM Tanveer had warned that viability of the textile industry would be questioned if gas supply was suspended in Punjab.At least 35 percent of the textile units havealready been closed, exports have dropped by $1 billion and a total of $2.5 billion export revenuewill be lost in case the industry is rendered non-operational during winter. It will also cost millionsof jobs in the province while procurement of five millions cotton bales will be in doldrums.

The country has been facing energy crisis for the last many years and it has become one of the biggest hurdles in the way of development. The government should learn from the experiences of other countries such as Turkey which not only overcame energy crisis but also raised its per capita income from mere $2000 to $12,000within a decade.The situation in Bangladesh was worse than Pakistan with half of its GDP than ours, but it has doubled its export volume and is now an emerging economy in South Asia.Thousands of Pakistanis have set up industries across Bangladesh due to its business friendly policies, tax relief and electricity supply.

Tags: CNG stationsEjaz A Mumtazfederal governmentgasLahore Chamber of Commerce and Industry (LCCI)

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