KARACHI – The Pakistan Economy Watch (PEW) on Saturday said new gas tariff to be imposed from July 01 will devastate masses and industrial sector.
The gas tariff has already been increased therefore there is no justification in another hike, it said.
Gas price is being increased by 191 percent which will put a burden of Rs510 billion on gas consumers, said Dr. Murtaza Mughal, President PEW.
The move will hit the while population which damaging the middle class, textile, fertilizer, and general industry sectors, he warned.
The gas price hike is to hit exports, employment, and industrial expansion, he said, adding that may CNG stations will be bankrupted.
The maximum burden has been put on the middle and upper-middle income groups whose incomes have already shrunk due to increase in taxes, inflation, and a shrinking economy.
Dr. Murtaza Mughal said that increasing the price will help gas utilities swing to profit but it will also increase gas theft while imposing cutoms duty on LNG will also hit almost every sector of the economy.
LNG terminals are already working below capacity and reduced demand for gas will add to their losses for which masses would be billed.
He said that abiding by the directives of IMF is necessary but interests of masses and keeping economy on track is more important.
