Save Pakistan Industry Forum proposes key to energy crisis

In a letter to the Federal Advisor, the Forum said the only short term solution to solve the energy crisis is to increase the price of CNG equivalent to petrol and close them for 90 days in summers during July, August and September and 90 days in winters during December, January and February.                                                

Regarding the medium term solution, the Forum has advised to set up three LNG terminals of 500MMCFD each with capacities of handling gas up to 1500MMCFD and distributing it to all consumers through SNGPL or SSGC networks wherever required on the basis of weighted average .                                          

So far as long term solution is concerned, it is about completing TAPI and IP gas lines and making investment friendly and market based policies to encourage gas exploration in Pakistan.

The letter has appreciated the role and vision of Dr Asim Hussain to end energy shortages in Pakistan and his intellectual contributions and achievements  in his tenure as a Cabinet Minister of the most sensitive and important ministry of Pakistan with  honest commitment, hard work  with highest integrity earning for him the reputation of a' Hard Task Master'.

The letter has stressed the government to take concrete and solid economic decisions to save Pakistan from wastage of most precious natural resource gas of 500MMCFD in CNG consumptions for cars of rich, being subsidized on an average Rs2000 per car per month, approximately Rs50 billion per year at the cost of survival of industry of Pakistan with 10 million workforce and livelihood of 50 million families.

It has also been lamented that the gas-based power plants producing electricity through diesel are costing Pakistan Rs300 billion because of such an inefficient use of 500MMCFD in CNG.            

It may be noted that Pakistan is facing huge gas shortfalls in winters up to 1500MMCFD, which results in closure of all the industries in Punjab and 500MMCFD in summers resulting in 2 days closure every week for industry. Meanwhile, the captive power plants of textile industry and 100% fertilizer industry are totally dependent on SNGPL Network for gas consumption.              

The letter said that the textile industry is employing 10 million workforce earning Rs9000 per month and providing livelihood to 50 million Pakistanis. The textile industry is producing Industrial raw material and finished goods through agricultural raw materials and $14 billion exports for the country.

It has further highlighted that Pakistan government had introduced a wrong policy 10 years ago to allow our natural gas as CNG for consumption in cars and Pakistan has today become the highest consumer in the world by using this precious resource and now wasting 500MMCFD in 15 % efficient millions of car engines, which is only because it is priced at 60% of petrol.

All Pakistan Textile Mill Association (APTMA)