Wednesday, November 18, 2009
LAHORE: Pakistan Industrial and Traders Associations Front (PIAF) has appealed to the prime minister to reject the recommendations of Oil and Gas Regulatory Authority (OGRA) for a 26 per cent increase in gas tariff as it would be disastrous for major export earning sectors, including textiles.
In a statement here on Tuesday, PIAF Chairman Irfan Qaiser Sheikh said that OGRA has no justification for making recommendations for tariff hike at a time of bad law and order situation, high electricity rates and mark-up in double digits.
“Industrial production is already at its lowest ebb and any further increase in gas or electricity prices is bound to cause irreparable loss to the overall economy, therefore it would be wiser to keep the decision pending,” Sheikh added.
Sheikh said if the input cost for doing business in Pakistan would be higher than that of its neighbouring countries, foreign investors would not be ready to invest in new ventures in Pakistan.
He pointed out that acute power shortage had already pushed the industrial sector to the wall and a large number of workers had lost their jobs, adding the government should avoid any anti-industry step.
The PIAF chairman said it would be better if gas companies control line losses, introduce efficiency in their system and control gas theft.
Sheikh urged the Prime Minister to look into the matter and stop OGRA from making any further hike in gas tariffs.
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