Industries in Pakistan’s Karachi suffering $125mln daily losses amid gas crisis — traders

An employee works on a loom at a fabric factory in Karachi, Pakistan, on November 23, 2021. (AFP/File)
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Updated 31 January 2022
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Industries in Pakistan’s Karachi suffering $125mln daily losses amid gas crisis — traders

  • Pakistan is currently facing around 200 mmcfd gas shortage due to depleting gas reserves, cargo defaults
  • Court stay barred government from implementing load management plan for domestic consumers, official says

KARACHI: Business leaders on Monday said they were “disappointed” over the suspension of gas supply to industries in the southern Pakistani commercial and industrial hub of Karachi for more than three months, which they said was causing Rs22 billion ($125 million) per day losses in export revenue. 
Representatives of 14 industrialist bodies, including Karachi Chamber of Commerce and Industry (KCCI) President Muhammad Idrees and Businessmen Group Chairman Zubair Motiwala, appealed to Prime Minister Imran Khan and his aides to immediately restore gas supply to all industrial zones in Karachi. 
“Our industrial activities are suspended for last 68 days and the situation is affecting thousands of laborers,” Motiwala said at a joint press conference in Karachi. “On account of exports, industries are suffering Rs22 billion losses on a daily basis.” 




Zubair Motiwala, chairman of Businessmen Group, addresses a joint press conference in Karachi, Pakistan on January 30, 2022. (Photo courtesy KCCI)

They said they were “deeply shocked and totally disappointed with the government for neglecting and ignoring repeated appeals over natural and regasified liquefied natural gas (RLNG) crises and for remaining indecisive in resolving the matter after more than 100 days.” 
The chronic gas shortage amid depleting local reserves worsens Pakistan’s energy woes in winters and leaves industrial and domestic consumers struggling for survival. This year the situation was further complicated when prices of liquefied natural gas (LNG) skyrocketed globally, making it unaffordable for the South Asian nation to import it. 
More recently, suppliers denied two LNG cargoes as they backed out from deliveries amid skyrocketing rates and increasing global demand. 
“The country is currently facing around 200 million cubic feet per day (mmcfd) gas shortage due to cargo defaults and about 9 percent yearly depletion of gas from indigenous fields,” Muzzamil Aslam, a spokesperson for the Pakistani energy ministry told Arab News. 
“Despite global crunch, high demand and prices, Pakistan was able to import 90 percent of the LNG cargoes.” 
The Karachi-based industrialists said the government’s promises to supply gas to export industries appeared to be an eyewash and a mere lip-service. 
“It is extremely unfair to deprive Karachi of gas or RLNG as the city, being the textile and industrial hub of Pakistan, alone contributes 68 percent revenue to the national exchequer, 54 percent to national exports and 52 percent to textile exports,” Motiwala said. 
“Karachi continues to face discrimination that has led to causing severe production losses of more than 66 percent due to reduced or no supply of gas.” 
Jawed Bilwani, chairman of Pakistan Apparel Forum, said the value-added textile export industries were beset by such behavior of the government. 
“Government is well aware that a decline in exports will translate into downward revision of national revenue and negatively impact the foreign exchange coming into Pakistan,” Bilwani said. 
“Industrialists have invested more than $3 billion on the purchase of machineries and equipment, which was likely to promote industrialization but this policy will be wasted due to unavailability and unjustified distribution of gas.” 
Industrial consumers alone have not been bearing the brunt of Pakistan’s gas shortages, but domestic consumers also face frequent gas outages and are compelled to look for alternative sources, mainly the liquefied petroleum gas (LPG). 
“We are suffering from gas outages on a daily basis,” Kashif Hussain, a resident of Karachi’s Nazimabad area, told Arab News. “The supply is restored during night times with extremely low pressure causing severe problems in cooking food.” 
Similar situation is being witnessed in other parts of the country, including the eastern city of Lahore. “The situation of gas supply is not normal. In some areas, supply resumes at night but with low pressure,” Asif Ali Khan, a Lahore resident, said. 
Since the shortfall hit the country, LPG prices have gone up by 52 percent, according to the official weekly inflation data. 
Responding to a question about gas supply situation in Sindh, Aslam said industrialists had obtained a stay from the court, due to which the load management plan could not be implemented to divert gas to domestic consumers. 
“Every year gas to non-exporting industries is disconnected and diverted to domestic consumers, but due to the court’s stay order obtained by some industrialists, the government is unable to divert gas to domestic consumers as per the load management plan,” the energy ministry spokesperson said. “That is why domestic consumers are facing problems.” 
Aslam, however, said the situation would improve in the first week of February. 


Pakistan, other Muslim states raise alarm over Gaza situation after heavy flooding

Updated 02 January 2026
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Pakistan, other Muslim states raise alarm over Gaza situation after heavy flooding

  • Cold winter rains have repeatedly lashed the sprawling tent cities, turning Gaza’s dirt roads into mud and causing damaged buildings to collapse
  • The situation has been compounded by lack of sufficient humanitarian access, acute shortages of essential life-saving supplies and materials

ISLAMABAD: Foreign ministers of Pakistan, Saudi Arabia and other Muslim nations on Friday voiced concern over the situation in Gaza, following severe flooding triggered by heavy rains in the territory.

As 2026 begins, the shaky 12-week-old ceasefire between Israel and Hamas has largely ended large-scale Israeli bombardment of Gaza. But Palestinians are still being killed almost daily by Israeli fire, and the humanitarian crisis shows no signs of abating.

Cold winter rains have repeatedly lashed the sprawling tent cities over past weeks, turning Gaza’s dirt roads into mud and causing buildings damaged in Israeli bombardment to collapse. UNICEF says at least six children have now died of weather-related causes.

In a joint message, foreign ministers of Pakistan, Saudi Arabia, Egypt, Indonesia, Jordan, Qatar, Türkiye, the United Arab Emirates, expressed their “deepest concern” over the situation, compounded by lack of sufficient humanitarian access, acute shortages of essential life-saving supplies, and the slow pace of the entry of essential materials required for the rehabilitation of basic services.

“The ministers highlighted that the severe weather has laid bare the fragility of existing humanitarian conditions, particularly for almost 1.9 million people and displaced families living in inadequate shelters,” the Pakistani foreign ministry said in a joint statement.

“Flooded camps, damaged tents, the collapse of damaged buildings, and exposure to cold temperatures coupled with malnutrition, have significantly heightened risks to civilian lives, including due to disease outbreaks, especially among children, women, the elderly, and individuals with medical vulnerabilities.”

The statement came a day after UNICEF said a 7-year-old, Ata Mai, had drowned Saturday in severe flooding that engulfed his tent camp in Gaza City. Mai had been living with his younger siblings and family in a camp of around 40 tents.

They lost their mother earlier in the war, according to the UN agency.

Video from Civil Defense teams, shown on Al Jazeera, showed rescue workers trying to get Mai’s body out of what appeared to be a pit filled with muddy water surrounded by wreckage of bombed buildings. The men waded into the water, pulling at the boy’s ankle, the only part of his body visible. Later, the body is shown wrapped in a muddy cloth being loaded into an ambulance.

Foreign minister of Pakistan, Saudi Arabia and other states appreciated the efforts of all United Nations (UN) organizations and agencies as well as non-government organizations (NGOs) in continuing to assist Palestinian civilians and deliver humanitarian assistance under extremely difficult and complex circumstances.

“They demanded that Israel ensure the UN and international NGOs are able to operate in Gaza and the West Bank in a sustained, predictable, and unrestricted manner, given their integral role in the humanitarian response in the Strip. Any attempt to impede their ability to operate is unacceptable,” the statement read.

The foreign ministers reaffirmed support to President Donald Trump’s plan for Gaza, with a view to ensuring the sustainability of the ceasefire, bringing an end to the war in Gaza, to secure a dignified life for the Palestinian people who have endured prolonged humanitarian suffering, and leading to a credible pathway to Palestinian self-determination and statehood.

“In this context, they stressed the urgent need to immediately initiate and scale up early recovery efforts, including the provision of durable and dignified shelter to protect the population from the severe winter conditions,” the statement read further.

“The ministers called on the international community to uphold its legal and moral responsibilities and to pressure Israel, as the occupying power, to immediately lift constraints on the entry and distribution of essential supplies including tents, shelter materials, medical assistance, clean water, fuel, and sanitation support.”