The Sui Southern Gas Company (SSGC) has recently imposed a crippling two-day weekly suspension of gas supplies to industries in Karachi, resulting in a staggering 30% decline in production activities and significant losses for businesses.
Pakistan’s business community is grappling with a severe challenge that poses a threat to economic stability the chronic shortage of essential utilities such as electricity, gas, and water.
In Karachi, the nation’s industrial hub, industries are facing significant disruptions, leading the President of the Karachi Chamber of Commerce & Industry (KCCI), Mohammed Tariq Yousuf, to urgently call on the federal government for intervention.
President KCCI expressed frustration and appealed to Prime Minister Shehbaz Sharif and Minister of State for Energy Musadik Malik to promptly address the issue.
The impact of these utility shortages goes beyond the business community, affecting the nation’s economic stability. Karachi plays a crucial role, contributing 68% of revenue to the national exchequer and 54% to national exports, with 52% of the country’s textile exports originating from the city.
However, despite its contributions, Karachi faces a gas supply deprivation, raising concerns about the violation of Article 158 of Pakistan’s constitution, which grants the province the first right to the gas produced within its boundaries.
Research by Gallup Pakistan in 2022 highlights the severity of utility challenges faced by businesses in Pakistan.
The study revealed that Pakistani firms experience 22 electrical outages in a typical month, four times higher than the global average.
Frequent electricity disruptions lead to annual sales losses, but the use of generators helps mitigate some of the losses compared to other regions.
Water supply issues affect 2% of firms in Pakistan, lower than the global average. However, the textile industry bears the brunt due to its high-water consumption. Transportation emerges as a significant constraint for 25% of Pakistani firms, indicating potential issues with the country’s roads and overall transportation system.
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