Pakistan's export-oriented industries, industrialists in Karachi have announced that they will be stopping their export activities on a phased basis from the first week of December. This decision comes as a protest against the recent 130% increase in gas tariff, which is expected to have a crippling effect on the already struggling industrial sector. Addressing a joint news conference, President of Karachi Chamber of Commerce Iftikhar Sheikh expressed serious concerns over the rising gas prices and their impact on the industrial sector. He stated that the current tariff hike is unsustainable and will force many small and medium-sized industries to shut down. Sheikh also called for the immediate implementation of the 1350 rupees per MBTU gas price recommended by OGRA, while also urging the government to address the issue of circular debt.

Javed Balwani, Head of Value Added Textile Sector, further elaborated on the planned stoppage of export activities. He said that the first phase of the protest will involve a one-day shutdown of all export activities. Balwani also highlighted the unfairness of cross-subsidizing the fertilizer sector, which earns 40 billion rupees, at the expense of the industrial sector. He questioned the rationale behind the high gas price of Rs 2100 mmbtu and urged the government to engage with industry stakeholders to find a solution.

The decision by Karachi industrialists to halt export activities is a stark illustration of the deep-rooted problems plaguing Pakistan's economy. The rising cost of energy, coupled with the government's inability to address critical issues like circular debt, is creating an environment that is increasingly hostile to businesses. If left unchecked, this situation could lead to a further decline in industrial output and a significant drop in export earnings.

 
Credit: Independent News Pakistan (INP)