KARACHI: SITE Association of Industry, in a press statement, demanded the federal government to provide gas to Sindh province in accordance with the provisions of the Constitution of Pakistan.
President SITE Saleem Parekh it was clear in the constitution that gas-producing province shall have precedence over other parts of the country but unfortunately, it is not being done in the case of Sindh province, which produces 73 percent of total gas of Pakistan and consumes only 29 percent of the gas it produces. “Today gas production in Sindh stands at 2900 MMCF while only 1200 MMCF is being provided to the gas producing province”.
He said that government has announced incentives for the five zero-rated sectors aiming to boost exports. “Non-zero-rated industries are essential part of the export value chain. Closure of gas for three months to non zero-rated industries (or closing down of industries for three months) will badly affect export orders and shortage of industrial raw material,” Parekh said adding closing down of these import substitute industries will increase cost of production of exporting units and also create mass employment.
“Sweeping statements such as shortage of gas from wellheads is meaningless. SSGC must quantify the shortfall and the logic of this linked to the available gas in the system,” Parekh said.
SSGC has itself contradicted its statement in its Petition for 2018-19 as the official petition of SSGC does not give any significant drop in gas output as per its own expected supply from wellheads and expects a drop in gas supply by less than one per cent only.
Parekh said that apparently it seems that SSGC is deliberately creating hurdles in the smooth functioning of industries by closing gas of captive power units for three months on the grounds of mere less than one percent drop in gas supply. “Instead SSSG should plead the case of its due share from the gas produced in the Sindh province as per constitution to meet the minor shortfall mentioned in their petition”.
President SITE Association urged Chief Minister Sindh to intervene for the due share of gas quota of Sindh province as per the Constitution of Pakistan to ensure smooth functioning of non-zero rated industries in winter months.