SUBJECT: UTTER DISCRIMINATION FOR KARACHI INDUSTRIES DUE TO HIGHEST WATER TARIFF SERIOUSLY HITTING THE VITAL TEXTILE EXPORT SECTOR.
Pakistan Hosiery Manufacturers & Exporters Association conveys its best wishes and compliments to your good self.
It is indeed most unfortunate that there is utter discrimination in the Water Tariff for the Industrial Consumers of Karachi. The export oriented industries, in view of such discrimination and highest Water Tariff are finding that the cost of doing business is rising and this is compelling them to leave Karachi. Such a scenario will indeed be most devastating and create mass unemployment leading to chaos and serious law and order situation in Karachi.
Honourable Sirs, it is pertinent to note that the tariff for industrial Raw Material such as Gas, Electricity, Petrol and Diesel is uniform in all the Provinces all over Pakistan as also Minimum Wages of Labour. Petrol and Diesel is transported to other provinces from Sindh province and entailing transport costs to the far corners of other provinces all over Pakistan but still the rates are uniform while such utter discrimination in the price of water which is Rs.53/- in Punjab; Rs.52/- in Balochistan and Rs.158/- in Sindh is not at all understood. To crown this all the Karachi Water & Sewerage Board has once again increased Water Tariff for the Industrial Consumers by 9% which is a most unjust, cruel and harsh step which will crush the export manufacturing units of Karachi.
As it is this increase will not only shoot up the rising cost of doing business but also make us uncompetitive within our own Sindh Province because even the current water charges in Hyderabad is Rs.25/-; Kotri is Rs.33/- and Nooriabad is Rs.65/- are much cheaper as compared to Karachi while the current rate for Punjab Industries is Rs.53/- and Balochistan is Rs.52/-.
Further, we strongly feel that due to improper billing of just 20% of supply, KW&SB is suffering huge losses while 80% of supply is not billed and this burdened is put on the 20% of the consumers. If proper billing for 100% supply and collection of payment is carried out by KW&SB, it will not only be a high profit earning organization instead of suffering huge losses but earn so much that it will not necessary to raise water tariff at all. Further this will result in uniform Water Tariff all over Pakistan.
Honourable Sirs, 50% of the exports of Pakistan are from Karachi and generates huge employment but unfortunately the export oriented industrial units of Karachi who consume huge amount of water in their production process.
Furthermore our exporters are battling for their survival in the global market just because even in our neighbouring competing countries like Bangladesh, India etc the water tariff is much lower as compared to Pakistan, which again makes our products uncompetitive in the international market.
Why such utter discrimination in the price of water for the Karachi industries?
The Government, in the best interests of earning of foreign exchange and keeping in view the huge employment generated by the Export Manufacturing Industries of Karachi, must seriously ponder and look into this serious discrimination in the water tariff for industrial consumers of Karachi and ensure that the water tariff is uniform in comparison to other provinces and also within the province of Sindh and immediately withdraw this unjust increase in water tariff by 9% by KW&SB for industrial consumers.
We are indeed confident that your good self will consider our above request most favourably in the larger interests of our beloved Province of Sindh and its people in general.
With best regards,
For Pakistan Hosiery Manufacturers & Exporters Association
Rana Muhammad Mushtaq Khan