October 19, 2019

Export industry in Punjab: ECC to be moved for $6.5 per MMBTU gas price, says official

ISLAMABAD: The government began billing the gas to the export industry at $ 12 for MMBTU instead of $ 6.5 for MMBTU, as previously agreed and decided in the budget with textiles, sports, surgery, carpets and leather, but not at all Contrast to what it really has. Adopted with Punjab export Industry, it is billing the same industry in Sindh for $ 4.90 per MMBTU.

The discriminatory treatment that is being applied to the Punjab export industry would only serve to cause great damage to Pakistan’s exports. Despite budget approvals and the cabinet’s decision on the sale of RLNG at $ 6.5 per MMBTU, textiles, sports, surgery, carpets and leather are billed at $ 12 per MMBTU, but interestingly the same industry in Sindh is billed $ 4.90 by MMBTU, Shahid Sattar, Advisor to All Pakistan Textile Mills Association (APTMA), told The News.

He said that the textile sector will be billed at $ 12 for MMBTU in the current month of July and that the export industry in Punjab has decided to close its operations since it is not in a position to pay gas bills at the price of $ 12 per MMBTU . “The closure of the export industry in Punjab will lead to mass unemployment in the country.”

According to the most revered economist, Dr. Hafeez Pasha, due to the economic policies of the established regime, eight million people will go below the poverty line in June 2020. With the high price of LNG gas at $ 12 per MMBTU to export the industry in Punjab, textile products would not be competitive in the international market, which is why the export industry in Punjab would have no choice but to close its operations.

Shahid Sattar said that government-imported LNG is too expensive and costs $ 12 per MMBTU. He noted that the spot price of LNG in the port of Pakistan is $ 3.90 per MMBTU, and if the regasification charge of 47 cents, the withholding of $ 1.95, the PSO charges of 16 cents, the costs of transmission and distribution of 58 cents SNGPL and the UFG cost of 35 cents are included, then the cost of RLNG in Punjab from Karachi is $ 7.41 per MMBTU, which is $ 4.59 per MMBTU, it is less than $ 12 per MMBTU in which the Export industry in Punjab receives the gas. “Unless the government meets its budget commitments and provides the gas at $ 6.5 per MMBTU in which the industry is provided in India, Bangladesh and Vietnam, the Punjab export industry will not survive in the international market and will disappear.”

However, when the Petroleum Division official was contacted, he acknowledged the fact that the export industry is billed at $ 12 per MMBTU, since at this time there is no mechanism by which the export industry is billed at $ 6.5 per MMBTU. “We have prepared a summary for the Economic Coordination Committee (ECC) that seeks the powers to bill the gas to the export industry at $ 6.5 per MMBTU and within 10 days, the ministry of finance must guarantee a subsidy of $ 5.5 for MMBTU to SNGPL “.

The Petroleum Division said at this time that the export industry is being billed at the total cost of LNG at $ 12 per MMBTU, but will then adjust.

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