Chief Editor: Ansar Mahmood Bhatti

FPCCI says LNG imports should not be discouraged

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DNA

KARACHI – The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Sunday asked the government to identify the elements blocking import of LNG as winter sets in while the gas utilities have become a liability.

The gas sector will become another white elephant for the masses and business community eroding their competitiveness therefore it must be fixed without delay said Vice President FPCCI Qaisar Khan Daudzai.

The gas sector circular debt has jumped to Rs250 billion due to lack of reforms, inbuilt inefficiencies, theft and mismanagement and the country will face a massive gas shortfall as the demand jumps during the winter therefore the government should take required steps without delay.

In absence of any major discovery during last few decades the former government initiated the LNG project and later allowed private sector to import gas, he added.

The FPCCI VP said that the private sector and some multinational companies tried to bank on the opportunity and invested billions in it but the powerful bureaucracy will not allow them to start their operations which is keeping consumers from affordable gas.

Qaisar Khan Daudzai noted that gas bureaucracy wants to continue their monopoly over distribution of gas and it has not accepted the decision of the government.

He asked the government to address the reservations of industries, and CNG sector, about the Gas Infrastructure Development Cess (GIDC).

The government should find some acceptable solution of GIDC without delay otherwise it will increase the cost of doing business and add hundreds of rupees to the price of urea which will damage our limping agriculture sector adding to food insecurity.

The food security situation in the country is far from satisfactory and GIDC can inflict heavy collateral damage to food security, he warned.






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