Ahmed Khan Malik

Production units in the Hub Industrial Area of Balochistan have been struggling to keep running due to high energy costs, disruptive gas supply and water shortages.  The manufacturers have complained that in an era of competition, the governments around the world are facilitating the industries through provision of subsidised and uninterrupted energy, but the situation in Pakistan is the opposite, where energy costs have skyrocketed and their availability has become a major issue due to shrinking reserves and no planning to increase production.  Balochistan has a very narrow industrial base, and the Hub district is the only area which houses a large number of industries because of its close vicinity to Karachi, the economic and industrial centre of Pakistan.  Industrialists have long been urging authorities to tackle critical issues affecting their output. They have been calling for consistent gas supply with proper pressure, improved road connectivity between Karachi and Hub, apart from rehabilitation of the deteriorating infrastructure in the industrial zone. According to them, Hub Industrial Area is providing jobs to the locals, especially youth, but the authorities were not ensuring its smooth functioning.  The industrial area, spanning 1,300 acres and housing around 200 national and multinational industries, faces numerous challenges, including energy and water shortages. Lasbela Chamber of Commerce and Industry (LCCI) president Ismail Suttar stressed the importance of addressing these issues.

He underscored the need to ensure proper gas supply, highlighting that new gas connections are not being provided, and industrialists are being forced to opt for Regasified Liquefied Natural Gas (RLNG) connections at a higher cost. According to Suttar, RLNG costs Rs3,950 per mmBtu (million British thermal units), while local gas costs only Rs1,350 per mmBtu. He lamented that Balochistan produces approximately 18% to 20% natural gas but only 6% is provided to the province. Suttar called for the implementation of Article 158 of the Constitution, which stipulates that the people of the production areas have the first and foremost right over natural resources. Maqsood Ismail, an industrialist, also highlighted the acute shortage of water in the region. He said despite the presence of ample water in Hub Dam, issues such as water theft and evaporation persist due to a lack of a proper water supply channel. Ismail urged the government to lay pipelines to supply water to the Hub city and the industrial area, so that reliance on water tankers can be eliminated. The industrialists believe that addressing these fundamental issues will unlock the tremendous potential of the Hub Industrial Area to accommodate more industries and create new job opportunities. They have underscored the need for the government to allocate funds for the rehabilitation of the industrial area, emphasising the positive impact it can have on the region’s prosperity and job creation.

Credit: INP-WealthPk