Foreign investors have expressed serious concerns over the government’s outright ban on the import of CNG kits and cylinders which they term could jeopardise any future investment in the entire gas sector. After holding a meeting with CEOs of foreign companies of Italy, Argentina, Japan and China, which have made investment in the sector, Chairman All Pakistan CNG Association (APCNGA) Ghias Abdullah Paracha demanded immediate lifting of the ban as otherwise it could derail the entire plan of the government to restructure the gas sector. Talking to reporters after the meeting, Paracha said that the foreign investors have serious concerns over the import ban, as it was affecting their whole investment. He said due to the ban not only the CNG equipment manufacturers but even the motor companies were facing pressures. He said the ban would ward off any future investment in the entire gas sector including CNG, LNG and LPG in the country. Pakistan has emerged as the leading CNG user after the government introduced the natural gas as an alternate vehicle fuel. More than 3.5 million ply on the fuel. Due to the electricity shortages of 5,000 MW in the country, most of the industrial sector has shifted their power generation to natural gas. This has created a deficiency of 1 bcfd gas even during the hot summer, in which domestic consumers don’t require gas for their heating requirements. The government estimates that the use of CNG has increased 35 percent during the last ten years. The CNG sector uses 310 mmcfd. The government plans to replace CNG with LPG as auto fuel and is gradually increasing the price of CNG to bring it closer to petrol and diesel prices.
