Karachi industries object subsidies for fertilizer and power companies announce shutdown on Dec 4

All seven industrial zones of Karachi have announced a strike on December 4, (Monday) to protest unaffordable and unbearable gas tariffs, various trade and industry bodies endorsed the decision.

The industrialists has pointed out that new gas tariffs had burdened industries with a cross-subsidy for providing unfair support to fertiliser, power and domestic sectors.

A complete closure of all industries on December 4 (Monday), if the legitimate demand of fixing gas tariff at Rs1,350 per mmBtu is not met by the government, an Industrialist leader stated.

The industrial associations are supporting to implement the gas tariff of Rs1,350 per million British thermal units (mmBtu) instead of Rs2,100 to Rs2,600 per mmBtu , determined by the Oil and Gas Regulatory Authority (Ogra) this month.

The Economic Coordination Committee (ECC) endorsed, Oil and Gas Regulatory Authority (OGRA) tarrifs mentioned below from November 1, 2023.

Businessmen Group Vice Chairman, Jawed Bilwani said that the industry demands fair gas tariffs and will never accept the unbearable rates ranging from Rs2,100 to Rs2,600 per mmBtu.

The industrialists across the board claims that the hiked gas tariffs have been imposed to please the fertiliser, domestic and power sectors, and penalise the industrial sector that forms the backbone of the economy.

SAI President Muhammad Kamran Arbi urged the government to hold a meeting with industry stakeholders to reach consensus on gas prices since the existing tariffs had outgrown the manufacturing costs.