Zahid Mazhar, Chairman, APTMA Sindh-Balochistan Region has demanded the Prime Minister Imran Khan and the Economic Managers of the Government to reduce the indigenous gas tariff for the five export oriented sectors in line with major reduction in oil prices in the international market, to recover from the negative impact of Coronavirus (COVID-19) on the economy and exports.
In a statement issued to the press, Zahid Mazhar said that the wide spread of COVID-19 Pandemic has severely disrupted the global economy so large that some economists have suggested that it will be even worse than the Great Depression.
In case of Pakistan due to slowing down of the growth momentum, the growth rate would be far below the target of 2.4 percent initially fixed for the current Financial Year, now expected to end up in negative growth of -1.5 percent, he added.
He further said that to offset the devastating impact of Coronavirus on the economy, industry and international exports, the rate of natural gas for the industries, specially the export oriented industries including their gas power generation plants which may be part of the same concern or associated concerns incorporated separately, should be reduced by at least 35 to 40 percent as the cost of energy is the major component of the total cost of production.
The drastic fall in the international oil prices to around $40 from the previous level of $65 also justifies the reduction in gas prices, Zahid Mazhar added.
