INP-WealthPk

Funds allocated for infrastructure upgrade in Hub insufficient: Industrialists

July 09, 2024

Ahmed Khan Malik

Industrialists have termed the funds allocated in the Balochistan budget for the upgradation of infrastructure in the Hub industrial estate as meagre and insufficient.

They have pointed out that poor gas supply has greatly impacted the operations in this major industrial area of the province. They have also highlighted the delay in construction of a major bridge connecting Sindh and Balochistan for the past one and a half years, causing disruptions in transportation of merchandise and hindering economic activities. Talking to WealthPK, Ismail Suttar, a leading industrialist in Hub, said that entrepreneurs were denied new gas connections and were being forced to opt for Regasified Liquefied Natural Gas (RLNG) connections at a higher cost. He said that RLNG cost Rs3,950 per mmBtu (million British thermal unit), while regular gas connections cost only Rs1,350 per mmBtu. He lamented that Balochistan produced approximately 18% to 20% of the country’s natural gas, but only 6% was provided to the province. Ismail called for the implementation of Article 158 of the Constitution, which stipulates that the local population has the first and foremost right over a natural resource discovered there. The Hub industrial estate, spanning 1,300 acres and housing around 200 national and multinational industries, faces numerous challenges, including energy shortages and utility problems.

The industrialists argued that the official apathy towards Hub City had resulted in energy crisis. Maqsood Husain, another industrialist in Hub, while talking to WealthPK highlighted the acute shortage of water in the region. He pointed out that despite the presence of ample water in Hub Dam, issues such as water theft and evaporation persisted due to lack of a proper water supply channel. He urged the government to lay pipelines to supply water to Hub City and the Hub industrial estate, thus ridding the industrialists and residents of reliance on water tankers. He said addressing these fundamental issues would unlock the tremendous potential of the area to accommodate more industries. He underscored the need for the government to allocate funds for the rehabilitation of the area, emphasising the positive impact it can have on the region’s prosperity and job creation. Maqsood said that the amount allocated for the industrial sector in the budget was not sufficient. He demanded of the government to provide more funds for the Hub industrial area so that it can contribute its due share to the economic development of the province.

Credit: INP-WealthPk