SITE Demands Withdrawal of Gas Tariff Hike

Staff Report

Muhammad Kamran Arbi, President of the SITE Association of Industry, has condemned the recent increase in gas tariffs approved by the Economic Coordination Committee and the caretaker government and demands withdrawal of gas tariff hike.

He has urged Caretaker Prime Minister Anwarul Haq Kakar, Federal Minister for Commerce, Industries & Production Dr. Gohar Ejaz, and Minister for Energy Muhammad Ali to retract the decision to hike gas tariffs in the greater interest of the national economy and to safeguard industries from collapse.

Arbi warned that failure to withdraw the decision would lead to the closure of industries, resulting in a decline in exports and widespread unemployment.

In his appeal, Arbi highlighted that the business community had been promised a tariff of 9 cents per kWh of electricity by the caretaker government.

This assurance provided a sense of relief and optimism to the business community, with the expectation that the new tariff would reduce production costs, enabling uninterrupted production and timely delivery of export orders. However, contrary to this assurance, the caretaker government has continued to raise prices of petroleum, electricity, and gas.Ogra Notifies Massive Hike in Gas Prices

The SITE President emphasized that the national economy is currently in a severe crisis, making running an industry no longer a profitable venture. He questioned how the country’s economy could be stabilized and strengthened without industrial and business activities.

“Regrettably, the caretaker government has taken no measures to create a competitive environment for industries, reduce production costs, or reignite the engine of the national economy, leaving the industrial community in despair,” remarked Arbi.

Arbi demanded that Prime Minister Anwarul Haq Kakar, Minister for Commerce, Industries & Production Dr. Gohar Ejaz, and Minister for Energy Muhammad Ali reconsider the decision to increase gas prices and reduce them, taking into account the prevailing ground realities.

He stressed that utility prices should be determined after thorough consultation with stakeholders, ensuring they are justifiable and regionally competitive, to facilitate uninterrupted industrial activities, ultimately having a positive impact on the national economy and exports.

Failure to reduce gas tariffs would adversely affect the country’s exports.