Daroo Khan Achakzai
BUSINESS HEADLINE

President FPCCI shows concern over Gas crisis

KARACHI – Engr. Daroo Khan Achakzai, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has shown his serious concern over the current gas crisis in Pakistan. He stated that due to gas shortage large number of factories in Punjab and Sindh has suspended their production activities which may create difficulty in achieving the exports target US$ 40 billion in FY19. 

He further stated that power sector is the largest consumer of gas followed by domestic and fertilizer sector and the current demand supply gap has reached to 2,500-3000 mmcfd as local production of gas depleted to less than 4,000 mmcfd which not only affect the industrial sector production but also created problems for the domestic sector.

 While quoting the statistics, he stated natural gas indigenous supplies contributes 38 percent in total primary energy supply mix of Pakistan while this contributes just 6.5 percent in Indian energy mix supply whereas India largely uses hydel, coal and oil for energy production and large portion of its natural gas is used for industrial production.

Engr. Daroo Khan Achakzai the government to ensure continuous supply of energy to industrial sector as it helps in improving the economies of scale and making industrial sector competitive globally.

Engr. Daroo Khan Achakzai further added that Sindh is the major producer and consumer of natural gas but doesn’t get it complete share. It produces 56 percent of total gas supply (including RNLG) but uses 43 percent while Punjab produces just 3 percent and uses 47 percent, KPK produces 12 percent and uses 7 percent and Baluchistan produces 13 percent and consumes 2 percent. He further stated that Pakistan meets its 18-20 percent of its total requirement through RLNG. Moreover, there is a huge transmission and distribution losses of natural gas in Pakistan which is estimated 13-15 percent of total consumption due to illegal compressors installed and rampant theft. He suggested that these losses may be removed by good management and proper distribution.