Tag: Industries

  • Commerce minister warns of financial loss over proposed early market closure 

    Commerce minister warns of financial loss over proposed early market closure 

    Caretaker Minister for Commerce, Industries, and Production, Dr Gohar Ejaz, has voiced his opposition to the early market closure proposed as part of the energy conservation plan, expressing concerns over the significant financial losses the government could incur as a result.  

    According to ARY News, Dr Ejaz said that Pakistan currently has a surplus of electricity, making the decision to close markets prematurely economically unfavorable. 

    He revealed that recommendations were sought from all chambers of commerce across the country within a 30-day period. Additionally, Dr Ejaz announced an upcoming anti-gas theft initiative following the anti-power theft operation. He urged traders to be flexible, considering the limited gas resources in the country. 

    Furthermore, he revealed plans to invite 100 international brands to a conference in Pakistan, granting them the status of state guests. Dr Ejaz also mentioned the current exchange rate of the US dollar, which stands at Rs260. 

    To encourage the purchase of electricity from Thar, he directed Sindh and Punjab to do so, promising tax exemptions if they comply. This move aims to make electricity tariffs in these regions more competitive. 

    The caretaker minister stressed the need to boost exports, pointing out that Pakistan’s foreign direct investment is contingent on increased exports. He called for cooperation from business leaders to resolve various issues.  

    Dr Ejaz expressed his commitment to serving the country and previously outlined plans to support industry stakeholders in boosting exports and establishing business parks in major cities to stimulate economic growth. 

  • Supreme Court directs FBR to collect 50% super tax from big companies within seven days

    The Supreme Court of Pakistan has ordered organisations earning more than Rs150 million to submit 50 per cent of the super tax imposed on them to the Federal Board of Revenue (FBR) within seven days.

    A two-member bench consisting of Chief Justice of Pakistan Umar Ata Bandial and Justice Athar Minallah heard the plea filed by the FBR against an interim order issued by the Lahore High Court (LHC). The FBR’s counsel, Salman Akram Raja, informed the bench that the LHC had temporarily prohibited the FBR from collecting the tax pending a final decision.

    However, counsel for the respondents argued that the government’s super tax on corporations was unconstitutional. The Supreme Court suspended the interim order of the high court and allowed the FBR to collect 50 per cent of the super tax from these industries within seven days.

    Last year, Prime Minister Shehbaz Sharif announced the implementation of a 10 per cent super tax, also referred to as the “poverty alleviation tax,” on 13 key industries to increase tax collection. The government stated that the “tough decisions” were made to safeguard the economy.

    According to Geo, the sectors subject to the tax included cement, steel, banking, airlines, textile, automobile assembly, sugar mills, beverages, oil and gas, fertilizer, cigarettes, chemicals, and LNG terminals.

  • Gas supply to industrial sites suspended for two days

    Gas supply to industrial sites suspended for two days

    The gas crisis has grown worse in the economic hub of Pakistan as the duration of gas load-shedding in Karachi industries was extended for up to two days.

    The industrial sites in Karachi will be facing two-day gas load-shedding instead of one.

    According to the information obtained, all industrial facilities and captive power plants in Karachi will not be supplied gas for two days.

    From December 17 to December 19, seven industrial zones and captive power plants were instructed to refrain from using Sui Southern Gas Company’s (SSGC) gas supplies on Saturday and Sunday.

    In addition to conducting unannounced raids on all industrial sites, the SSGC surveillance teams will also take legal action against those who violate the rules.

    Imtiaz Shaikh, the energy minister for Sindh, criticised the gas load-shedding on December 13 and claimed that although the province is generating more natural gas than it needs, it is still being denied its legitimate right.

    Imtiaz Shaikh, the energy minister, demanded that Sindh be given preference over other parts of the country in the provision of natural gas.

    “We will take the matter to court if required,” Sindh’s energy minister said. “We are also considering raising the issue in the Council on Common Interest (CCI),” he said.

    He said that the chief minister had discussed Sindh’s case regarding the gas issue during discussions between the state and federal governments. He expressed hope that the prime minister will pay attention to the situation.

    The provincial minister stated that when additional petrol is provided to the province, Karachi’s industry will resume operation.

    The most natural gas-producing province in Pakistan, Sindh, is now experiencing a severe natural gas shortage for home, industrial, and commercial customers.

  • SSGC cuts gas supply to industries in Karachi to facilitate domestic customers

    SSGC cuts gas supply to industries in Karachi to facilitate domestic customers

    Owing to the Sui Southern Gas Company Limited’s (SSGC) decision to stop supplying gas to several industries throughout the city, the gas crisis in Karachi appears to have gotten worse.

    “In adherence to the Ministry of Energy (Petroleum Division) gas load management plan, that places domestic and commercial customers on top of the priority list, it has been decided to suspend gas supply to all general industries from November 15 to February 28, 2023,” a statement issued by the gas company read.

    The decision, according to the statement, is intended to accommodate the rising demand from domestic customers in Sindh and Balochistan.

    It should be remembered that due to a gas shortage, all CNG stations in Sindh have already been closed for two and a half months.

    According to Geo, the SSGC delivered notices last week that gas will be shut off for more than three months over the winter to the city’s industries, but they rejected the notices, claiming that gas interruptions would result in large layoffs and the closing of firms.

    “The industries are in a state of shock to receive SSGCL’s notices of gas closure starting from November 15, 2022, to February 28, 2023,” according to Karachi Chamber of Commerce and Industry (KCCI).

    “The gas closures can not be proved good for the economy, especially this year, as no special arrangements have been made by the government to purchase RLNG to inject in the system.”

    The committee, established by KCCI, stated that it expected the government to take the proper steps to ensure gas supply to the city’s industries rather than completely cutting off gas, which would cause a significant drop in exports and revenue, the closure of industries, and job losses.

    The committee had suggested to the government that the gas supply be shut off every 12 hours for two days each week during the winter.