Ahmed Khan Malik

Industrialists of Karachi are feeling the heat because of high gas prices coupled with its shortage as winter season has further deteriorated the gas supply situation, marring the country’s economic growth. The arbitrary increase in gas tariff and gas shortages have slowed down the production process in the financial hub of Pakistan. “In these tough conditions, it is becoming impossible for the exporters to fulfill the export orders. The small and medium-sized sector is in the worst hit,” said Faisal Moeez Khan, President of North Karachi Association of Trade and Industry. “Though the country is going through a critical situation, the government should give us breathing space as the industries of Karachi are going to be closed down due to the current grim situation of gas,” he said. He noted if the industry was not allowed to run, where would the government generate revenue from.

“As the industrial sector is paying the highest rate of tax, the government should take concrete measures to address its concerns.” Moeez regretted that Sindh was the largest gas producing province, but was not getting its due share. “We have given some time to the government because we don’t want the country's economy to face any difficulties, but if industries start to close down, then the Karachi industrialists would devise a future line of action,” he said. Karachi, the financial and industrial capital of Pakistan, has an estimated $164 billion GDP. The city accounts for about half of the total collections of the Federal Board of Revenue, out of which, approximately half are customs duty and sales tax on imports. Karachi produces about 30% of value-added products in large-scale manufacturing.

Credit: INP-WealthPk