ISLAMABAD: The government has started billing the gas to export industry at $12 per MMBTU instead of $6.5 per MMBTU as was earlier agreed and decided in the budget with textile, sports, surgical, carpets and leather, but in sheer contrast to what it has factually adopted with Punjab export Industry, it is billing the same industry in Sindh at $4.90 per MMBTU.The discriminatory treatment being meted out to Punjab’s export industry would serve nothing but to inflict huge damage to the exports of Pakistan. Despite the budget approvals and cabinet decision on sale of RLNG at $6.5 per MMBTU, the textile, sports, surgical, carpets and leather are being billed at $12 per MMBTU, but interestingly the same industry in Sindh is being billed $4.90 per MMBTU, Shahid Sattar, Adviser to All Pakistan Textile Mills Association (APTMA) told The News.He said that textile sector is being billed at $12 per MMBTU in the current month of July and the exports industry in Punjab has decided to close down its operations as it is not in a position to pay the gas bills at price of $12 per MMBTU. “The closure of export industry in Punjab will lead to the massive unemployment in the country.”According to the most revered economist Dr Hafeez Pasha, due to economic policies of the sitting regime, eight million people will go below the poverty line by June 2020. With high gas price of RLNG at $12 per MMBTU to export industry in Punjab, the textile products would become uncompetitive in the international market which is why the export industry in Punjab would have no option but to close down its operations.Shahid Sattar said that the government’s imported LNG is too much costly which is at $12 per MMBTU. He pointed out that the spot LNG price at Pakistan port is at $3.90 per MMBTU, and if the re-gasification charge of 47 cents, retainage of $1.95, PSO charges of 16 cents, SNGPL transmission and distribution charges of 58 cents and UFG cost of 35 cents are included, then the cost of RLNG in Punjab all the way from Karachi stands at $7.41 per MMBTU which is $4.59 per MMBTU is less than $12 per MMBTU at which export industry in Punjab is being provided the gas. “Unless the government honours it budgetary commitments and provide the gas at $6.5 per MMBTU at which industry in India, Bangladesh and Vietnam is being provided, the export industry of Punjab will not survive in international market and rather it will vanish.”However the Petroleum Division’s official when contacted has acknowledged that fact that the export industry is being billed at $12 per MMBTU as right now there is no mechanism that export industry is billed at $6.5 per MMBTU. “We have prepared a summary for Economic Coordination Committee (ECC) seeking the powers to bill the gas to export industry at $6.5 per MMBTU and in within 10 days, finance ministry should ensure subsidy of $5.5 per MMBTU to SNGPL.”The Petroleum Division said at the moment export industry is being billed at the full cost of LNG at $12 per MMBTU, but it would later be adjusted.
from The News International - National https://ift.tt/2MInee7
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