Karachi: The President of the Korangi Association of Trade and Industry (KATI), Junaid Naqi, has strongly
opposed the Oil and Gas Regulatory Authority (OGRA)’s recommendation to increase gas tariffs for Sui
Southern Gas Company (SSGC). He warned that this proposal would place undue pressure on industries
and the public, already struggling with rising inflation and energy costs.
Junaid Naqi argued that the economic conditions do not justify such an increase, highlighting that the
move disregards recent reductions in unaccounted-for gas (UFG) losses and interest rates. Instead of
proposing a hike, OGRA should have suggested a reduction in gas prices, he stated, adding that such
measures are critical to ensuring the competitiveness of local industries in global markets and
supporting exports.
The KATI President reminded the government of its commitments to facilitate export-oriented
industries, emphasizing that OGRA’s proposal contradicts these assurances. He urged Prime Minister
Shehbaz Sharif to direct OGRA to revise its recommendations and adopt policies that are supportive of
both the public and the industrial sector.
Naqi also pointed to inefficiencies, such as unaddressed gas theft and system improvements, as major
contributors to financial challenges faced by gas distribution companies. He called on the government to
address these underlying issues rather than passing the financial burden onto consumers.
Highlighting the risks of the proposed tariff hike, Naqi warned that industries relying on gas-fired captive
power plants could face severe setbacks, including lost investments and further uncertainty in the
business environment.
President KATI appealed to the Prime Minister to reject the proposal outright and prioritize the
economic welfare of citizens and industries, stressing that any additional financial strain would hamper
the country’s economic recovery.
ADVERTISEMENT
