KARACHI: The suspension of gas to fuel stations across the provinces of Sindh and Balochistan not only risks the employment of over 20,000 people associated with the business but is also likely to exert further pressure on the country’s import bill, said traders and stakeholders on Tuesday.
The state-owned Sui Southern Gas Company (SSGC) announced the decision to suspend gas supply to the compressed natural gas (CNG) sector for two and half months from December 1 to meet the demand of domestic consumers during winter.
According to a notification released by the company earlier this week, the gas supply will remain suspended to “all CNG stations across Sindh and Balochistan from December 1, 2021, until February 15, 2022.”
However, the business community warned such decisions could wipe out CNG stations in in the country.
“We fear that about 20,000 people who are directly or indirectly associated with the CNG business will be affected along with their families,” Samir Najmul Hussain, convener of the Federation of Pakistan Chambers of Commerce and Industry’s standing committee on CNG, told Arab News. “It will also deprive the government of much needed revenue, exert pressure on the import bill, and add to the environmental woes.”
Owners of CNG stations also voiced concern over the decision.
“This practically amounts to driving CNG station owners out of business since this is the longest gas supply cut,” Shabir Sulemanji, chairman of the CNG Forum, said while talking to Arab News.
He informed that about 520 CNG stations out of 630 were operational in the two provinces and employed an average of 15 to 20 workers each.
Pakistan faces a chronic shortage of gas during winter, as demand for heating increases. The situation is mostly managed by the authorities by resorting to such load management mechanisms.
The country is expected to face a shortage of about 2,281 million cubic feet per day (mmcfd) between December 2021 and February 2022 due to a decline in local gas production, according to various estimates.
Given the frequent supply cuts to manage the gas demand in the country, CNG traders believe the sector is gradually being phased out.
“The number of CNG station across Pakistan has declined by about 3,300 to around 16,000,” Sulemanji said.
The country introduced CNG in the 1990s as a form of green fuel for ordinary people, though traders believe the concept is now coming to an end. “The concept of this being a cleaner fuel is gradually over,” Sulemanji said.
Pakistan stopped issuing CNG licenses in 2008, though it lifted the official ban last year and allowed people to set up new stations where they could only sell re-gasified natural gas (RLNG).
'Longest' supply cut to CNG stations in Pakistan may jeopardize over 20,000 jobs, warn stakeholders
https://arab.news/v3b45
'Longest' supply cut to CNG stations in Pakistan may jeopardize over 20,000 jobs, warn stakeholders
- The Sui Southern Gas Company has started suspending gas supply to all CNG stations in Sindh and Balochistan until February 15
- Owners of CNG pumps say frequent supply cuts to manage the demand of gas in the country will gradually wipe out the sector
Pakistan stocks close at record high over current account surplus, falling bond yields
- KSE-100 index gains 1,646.79 points or 0.97% to close at new high of 171,960.64 points
- Pakistan’s central bank posted a current account surplus of $100 million in November
KARACHI: Pakistani stocks closed at an all-time high of 171,960.4 points on Thursday, with financial analysts attributing the surge to increasing investor confidence stemming from a current account surplus reported in November and a drop in government bond yields.
The benchmark KSE-100 index gained 1,646.79 points or 0.97% to close at an all-time high of 171,960.64 points on Thursday. The previous day, Pakistani stocks surged to 170,313.85 points at close of business.
Ahsan Mehanti, chief executive officer at Arif Habib Commodities, said the optimistic mood at the stock exchange was fueled by the $100 million current account surplus reported by the central bank in November.
“Speculations ahead of year-end close and fall in government bond yields up to 70 basis points after the SBP (State Bank of Pakistan) policy easing played the catalyst role in bullish activity at PSX,” Mehanti told Arab News.
The surplus was a welcome development for Islamabad as Pakistan’s central bank reported a $291 million deficit in October.
Topline Securities, a Pakistani brokerage firm, said in its daily market review that strong buying by local funds followed a drop in Pakistan Investment Bond (PIB) yields, which boosted investor confidence.
PIB yields are the returns on bonds or government-backed securities that pay fixed semi-annual interest, with rates influenced by market demand and SBP auctions.
“Strength in ENGRO (Engro Corporation), FFC (Fauji Fertilizer Company), UBL (United Bank Limited), LUCK (Lucky Cement) and BAHL (Bank AL Habib) underpinned positive momentum, collectively contributing 1,504 points to the index,” the brokerage firm wrote on X.
“This upside was partly offset by declines in PIOC (Pakistan International Oil Company), DHPL (D.H. Corporation Limited) and MLCF (Millat Tractor Limited), which together subtracted 176 points.”
The sustained rise in equities comes amid improving liquidity conditions and continued investor participation, with market participants focusing on corporate earnings, sector-specific developments and broader macroeconomic signals.
Earlier on Monday, Pakistan’s central bank cut its key policy interest rate by 50 basis points to 10.5%, a move that surprised analysts and followed four consecutive policy meetings where rates were held unchanged.
The cut came despite an International Monetary Fund staff report earlier this month cautioning against premature monetary easing.
Inflation eased to 6.1% in November, remaining within the SBP’s target band, though analysts have warned that price pressures could resurface later in the fiscal year as base effects fade and food and transport costs remain volatile.
