By AHMAD AHMADANI
In a bid to benefit the industries of Punjab, the federal government has decided to review the price of gas for industrial sector of the country and advised Oil and Gas Regulatory Authority (OGRA) to avoid issuing gas price notification for the ongoing fiscal year (2016-17).
Well-placed sources informed Pakistan Today that the government has decided to review the gas prices for the countries’ industrial sector, and has advised OGRA to stay away from issuing notification of reduction in the gas price. This decision has been taken, apparently, to benefit the industrial sector of Punjab province.
Sources said Shahbaz Sharif convened an important meeting in Lahore with OGRA and the All Pakistan Textile Mills Association (APTMA) and got detailed briefings regarding the matter of varying gas prices for the industrial sectors of the country.
The attendants at the meeting informed the Punjab chief minister that due to shortage of gas in the country, the province’s industrial sector was getting imported gas at higher prices. The Economic Coordination Committee (ECC) had earlier approved a reduction in the price of locally produced gas, which affected the industries of Punjab adversely while the industrial sectors in Sindh, Balochistan and Khyber Pukhtunkhwa benefited from the decision.
Following the ECC’s decision, gas price stood at Rs 950 per Million British Thermal Unit (MBTU) for Punjab’s industries, and Rs 400/MBTU for the industrial sectors of Sindh, Balochistan and Khyber Pukhtunkhwa. Also, use of costly imported gas caused losses to the industries of Punjab, while industries of Sindh, Balochistan and Khyber Pukhtunkhwa developed due to the decision of ECC.
Sources report that during the meeting, CM Punjab Shahbaz Sharif decided he would put the matter before the Prime Minister for an amicable solution, and announced that a meeting with him would be held to take a final decision in this regard.
It is worth mentioning that the ECC had approved Rs200/MBTU reduction and fixed the gas price at Rs400/MBTU in a bid to promote the exports and sale of Pakistani products in the world market.
