business Leaders Urge Government Action on Rising Gas Bills
In Karachi, the business community is sounding the alarm. Leaders from the Karachi Chamber of Commerce and Industry (KCCI) and various industrial association groups are expressing deep concern over the skyrocketing gas bills that impact factories and exports alike. They’re calling on government leaders, including the Prime Minister and the Ministers of Petroleum and Power, to take immediate action.
During a recent press conference, business leaders voiced their frustrations about a controversial levy imposed on gas bills. This new charge has increased costs from millions to tens of millions of rupees in just a few months, placing substantial financial strains on industries. The appeal for a freeze on this retroactive levy aims to prevent further damage to an already struggling economy. If left unchecked, this situation could jeopardize factories and push Pakistan towards becoming more reliant on imported goods.
Zubair Motiwala, Chairman of the Businessmen Group (BMG), shared his insight via Zoom, recalling a time when industries were encouraged to invest in captive power plants (CPPs) to combat electricity shortages. However, he quickly pointed out that the recent surge in gas tariffs has rendered these investments unsustainable. “What was once a reliable solution has now become a fiscal burden,” he lamented.
Motiwala emphasized the importance of having competitive energy rates, especially in the textile sector, which relies heavily on power at every stage of production. He highlighted the disparity in energy costs between Pakistan and its neighbors like Bangladesh and India. "When our energy costs are significantly higher, how can we expect to compete?" he asked. He urged the government to bring our business costs in line with those countries, asserting that accountability should follow if they still fail to perform.
Furthermore, Motiwala criticized the levy imposed on CPPs, arguing that it was introduced under false pretenses and does not reflect a genuine cost differential with grid electricity. His call for transparency and fairness resonates with many within the business community.
As these discussions continue, it’s clear that the stakes are high, and the need for a collaborative approach between government and industry is paramount. These leaders believe that with thoughtful and proactive measures, Pakistan can stabilize its economy and reduce dependency on imports.
If you’re interested in keeping abreast of developments like these or seeking solutions for your own business challenges, consider connecting with organizations like Pro21st, which focus on fostering industry dialogue and providing valuable insights for growth. Together, we can work towards a more prosperous future.
