textile-ind

KARACHI: The trade and industry leaders have rejected the government’s decision of two weekly holidays for all government departments and its affiliated offices in the name of conserving energy.

They recalled that the previous practice of observing five days week for public sector, customs and ports had severely hampered the commercial and industrial activities, while exports and timely clearance of imports also suffered. “Due to two weekly holidays, Pakistan will remain cut off for three and a half days with the rest of the world,” they added.

The Karachi Chamber of Commerce and Industry (KCCI), President Mian Abrar Ahmad in a statement said the present most difficult economic situation demanded the people to work for 365 days a year for economic recovery.

He said that nowhere in the world banks are closed when the commerce and industrial sector is operative even in the countries where five days week is observed.

Exporters doing business with the Gulf countries already face additional elimination of business activity on Friday being observed as holiday.  He was of the view that to curtail the government expenditure and conserve energy austerity measures should be taken.

Korangi Association of Trade and Industry (Kati), chief patron S. M. Muneer, and chairman Ehteshamuddin also opposed the government’s decision terming it disastrous for the economy.

In a statement they said that closure of two days in a week would result in shut down of many export-oriented industries creating enormous unemployment.

They added that the present government has no vision to revive the economy as it has never come out with an industrial policy in the last three and a half years.

Chairman KATI also said that industries are without water for the last 48 hours which is affecting production activities of leather manufactures and exporters, tanneries, food processing, dying and bleaching, textile related units etc. - File photo

KARACHI: Production at the industrial areas of Landhi and Korangi has been affected owing to suspension of water supply to the area for the last 48 hours.

The worst hit are textile related units, tanneries, glass, chemical, dying and bleaching, food processing units. It has also been affecting exports.

Industrialists are perturbed over reports of a payment dispute between KESC and KWSB while impression was being given that it was a cable fault at Pipri pumping station due to theft of cable.

Sources said some four representatives of the Landhi Association of Trade and Industry (LCCI) sought help of Sindh Governor Dr Ishrat ul Ebad in a meeting on Tuesday to rectify the problem so that the industries could resume their production activities. The governor rang up KWSB chief to resolve the water crisis which is causing delay in export orders besides resulting in shutdown of many units.

LCCI chairman Riaz Ahmed said that production work in 60-70 per cent units out of 200 active units remained suspended due to no water supply from KWSB for the last 48 hours.

He said residential area in Landhi is also facing the same problem.

He said the government must take action against the KWSB for this unannounced suspension in water supply, while the rest of the damage is being done by the KESC for conducting six to eight hours daily load-shedding.

Chairman, Korangi Association of Trade and Industry (KATI), Syed Johar Ali Qandhari also said that industries are without water for the last 48 hours which is affecting production activities of leather manufactures and exporters, tanneries, food processing, dying and bleaching, textile related units etc.

Mr Kandhari said there was no justification in loadshedding by power utility when there was no total stoppage of gas. - File photo

KARACHI: Business and industry leaders have urged the government to appoint auditors to oversee cash flows of the Karachi Electric Supply Company (KESC) to avoid another circular debt.

Reacting to the power utility company`s recent decision to resort to eight-hour load shedding, which would affect two production shifts in all industrial estates, the leaders suspected some serious financial leakages in the KESC.

Site Association of Industry chairman Wahab Lakhani said when the power utility was regularly receiving utility charges from consumers, particularly business and industry, there was no reason it should face cash flow problem and stay fully dependant on gas for power generation.

He said under an understanding the KESC in case of shortage of gas supply is bound to ensure uninterrupted power supply by shifting to alternate fuel, which in this case is furnace oil.

However, he accused the KESC of destroying industry by saving its own funds on furnace oil.

The Pakistan Apparel Forum chairman Jawed Bilwani suggested that a formula should be evolved wherein payments to Sui Southern Gas Company could be made through the cash flows from current billings of the KESC.

He alleged that the power utility company resorts to such tactics to blackmail the government to get relief.

The city is confronted with law and order situation, Bilwani said, and added there will be further rise in unemployment with closure of industry due to prolonged loading shedding.

He recalled that the KESC in a letter dated August 17, 2011 had informed the ministry of water and power that all the industrial zones in the city were exempted from load shedding since last 18 months.

However, he challenged the statement of the CEO of KESC as completely false and misleading.

Korangi Association of Trade and Industry (Kati) chairman Johar Ali Kandhari said that as per agreement the KESC can not resort to loadshedding to the industry if gas supply was maintained at 160mmcft but the power utility in order to put pressure on government adopts method of dividing load- shedding in two spells as it will hurt the industry most.

He said that loadshedding causes millions of rupees production loss as well as increases cost of production of industry, which badly affects their competitiveness in the world market.

Mr Kandhari said there was no justification in loadshedding by power utility when there was no total stoppage of gas.