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Business community agitates over supply of 110 mmcfd gas to SNGPL from Ghotki

March 30, 2022: While referring to an announcement wherein it has been disclosed that initially 20 mmcfd of gas will be supplied to Sui Northern Gas Pipelines Limited (SNGPL) from Sachal Gas Processing Complex (SGPC) located in District Ghotki which will be enhanced to 110 mmcfd during the current year, the leadership of Businessmen Group, President Karachi Chamber of Commerce & Industry (KCCI) and Presidents of all seven Industrial Town Associations of Karachi stated that the entire business community was agitated over this unjust move as it was purely against the Article 158 of Pakistan’s Constitution and highly imprudent action, particularly in a situation when the industries of Karachi have been suffering dreadful gas shortages since last four months.

In a joint statement issued, Chairman BMG Zubair Motiwala, President KCCI Muhammad Idrees, President Site Association of Industry Abdul Rasheed, President Korangi Association of Trade & Industry Salman Aslam, President Federal B Area Association of Trade & Industry Haroon Shamsi, President North Karachi Association of Trade & Industry Faisal Moiz, President Bin Qasim Association of Trade & Industry Ellahi Buksh, President Site Super Highway Association of Trade & Industry Aamir Hassan Lari and President Landhi Association of Trade & Industry Nisar Palla pointed out that the Article 158 of the Constitution states that “the province in which well-head of natural gas is situated shall have precedence over other parts of Pakistan in meeting the requirement from well-head, subject to the commitments and obligations as on the commencing day.”

Hence, in light of Article 158, we can confidently say that it is a gross mistake on part of Secretary Energy who, while representing the Ministry of Energy, submitted before the Sindh High Court that the federal government did not need any permission from the province of Sindh to take its natural gas which even the judges found surprising in view of Article 158 of the Constitution, they added.
They further commented that sheer violation of Article 158 was giving a clear message that the Federal government wants to completely shut down Karachi industries forever by denying their constitutional right guaranteed by the Constitution of Pakistan. The gas being extracted from Ghotki belongs to the people of Sindh so the federal government has to comply to the Constitution and refrain from diverting gas to SNGPL without completely fulfilling SSGCL’s demand, they stressed.

They pointed out that since so many years, there has been a prevalent formula for distribution between the two gas companies in case any new gas field is explored but this formula has been totally ignored in the case of Sachal Gas Processing Complex in Ghotki. Under the Constitution of Pakistan, this gas being extracted from Ghotki should be given to Sindh so that the gas crises being suffered by the industries of the province, particularly those situated in Karachi could be averted.

They said that industrial production has suffered badly in Karachi due to the unavailability of gas for the last four consecutive months as neither indigenous gas nor RLNG was provided to the industries of Karachi throughout the winter season which has undoubtedly caused severe losses not only to the industries but also to the economy. The gravity of the situation can be gauged from the fact that during last year, Karachi’s export share stood at 54 percent which has descended to 50 percent and the 4 percent depreciation in export was only due to ongoing gas crises, they added.

Keeping in view the dire gas shortages being suffered by the industries of Karachi, BMG Leadership, KCCI and all Industrial Town Associations fervently demanded that the entire 100 percent gas i.e., 110 mmcfd extracted from Ghotki must be given to SSGC so that the industrial activities could be normalized to an extent.

They also appealed to Chief Minister Sindh Syed Murad Ali Shah and Energy Minister Imtiaz Ahmed Sheikh to take notice of the situation so that the industries of Sindh province particularly Karachi city could be saved from further disaster.

Press Release

Posted on: 2022-03-30T17:21:15+05:00

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