ISLAMABAD: Growing denunciation has led to retraction of the Gas Infrastructure Development Cess (GIDC) ordinance just after nine days of its issuance by President Dr Arif Alvi.The piece of legislation, now annulled, had waived Rs208 billion worth of liabilities of a few industrialists in addition to writing off late payment surcharge for the past seven years. Widespread criticism was being showered on the government for giving this concession. Simultaneously, there were strong indications that the ordinance is going to be disapproved through a resolution by the opposition-dominated Senate, which staged a walkout on Tuesday against its promulgation.Prime Minister Imran Khan did not take much time to revoke the ordinance. He was apparently conscious of the escalating criticism when it was stated in the official statement that “in view of the recent controversy, the prime minister, in the interest of transparency and good governance, has decided to withdraw the ordinance and direct the attorney general to move an application for urgent bearing in the Supreme Court so that the matter is decided at the earliest in accordance with the law and the Constitution.”While the federal ministers were stoutly defending the GIDC ordinance with one of them saying that the government has not offered a “free lunch” to the beneficiaries and the impact of increase in gas price is being offset by reduction in GIDC rate on fertilizer, the opposition parties kept condemning the instant legislation, which offered a lucrative amnesty to fertilizer and power plants and other businesses before audit.During the incumbency of Mian Saqib Nisar as the chief justice, the issue was massive litigation relating to projects undertaken by China had emerged and Beijing was extremely uneasy about it. When he had visited China, Beijing brought it to his notice. On his return to Pakistan, the top judge had concretely acted which discouraged such litigation, removing China’s objections.In the present case, the government before issuing the now-withdrawn ordinance may have taken up the issue involving multiple billions with the judiciary with the request to expedite the cases after bunching them together. This becomes all the more important when the government needs much more money at a time of revenue collection shortfall.Before its issuance, the ordinance was discussed in a meeting of the federal cabinet, which, it is believed, reviewed it from all aspects. However, its withdrawal shows that no meaningful deliberations were done prior to its promulgation.After the controversy intensified and the government was put under pressure, Energy Minister Omar Ayub stated that the federal cabinet has detailed discussions on the GIDC issue and noted that even though forensic audit was not mentioned in the ordinance because it was a sector specific issue, the cabinet linked the settlement of GIDC with fertilizer industry to forensic audit of accounts of the fertilizer companies.The ordinance had reduced GIDC rates by up to 75%, which was going to push down prices of gas and fertilizer for the end-consumers. According to official statistics, as of the end of December 2018, the total principal liabilities of beneficiary sectors stood at Rs416.3 billion and half of those were written off by the government. Cumulative GIDC collection since 2012 stood at Rs701.5 billion till the end of December 2018, of which only Rs285 billion had been deposited. However, the ordinance had not addressed the issue of how to refund 50% GIDC to those companies that timely discharged their legal obligations and paid the entire amount of GIDC.While taking back the ordinance, the prime minister expressed a mixed feeling of fear and optimism about the outcome of the litigation.Over the past one year, the government has issued twelve ordinances. It was impelled to do so for not being able to do legislation in the Senate, which is controlled by the opposition parties, which do not agree with its legislative agenda.
from The News International - National https://ift.tt/2zTVzze
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