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  • Dec 18th, 2013
  • Comments Off on Industry given more gas to cash in on GSP+ opportunity
The Economic Coordination Committee (ECC) of the Cabinet on Tuesday approved the diversion of 85 mmcfd of power sector gas to industry for a period of two months with immediate effect. Sources said the ECC chaired by Finance Minister Ishaq Dar gave a formal approval to the decision taken by Prime Min-ister Nawaz Sharif during an energy meeting with Finance, Water and Power and Petroleum Ministers on Monday.

They maintained gas was diverted to industrial units especially textile sector, for a period of two months so that it could take the advantage of GSP plus status granted to Pakistan. In reply to a question, they said the Pakistan Steel Mills (PSM) bailout package was one of the agenda items but could not be taken up because of time constraint.

The ECC also decided that National Electric Power Regulatory Authority (Nepra) would be directed to determine the tariff of Hubco (1,292 MW), Lalpir (362 MW), Pakgen (365 MW), Saba (134 MW) power plants in 45 days following due process and as per standard conditions and procedures.

These power plants had entered into a Memorandum of Understanding (MoU) with the government of Pakistan to convert their plants from furnace oil to coal within 24 months at the time when the government cleared the circular debt. The meeting was informed that once the above IPPs were converted to coal it would result in the saving of over Rs 60 billion per annum. It was further said that boilers would have a provision to use indigenous Thar coal as part of government's policy of reliance on indigenous resources.

The ECC decided to divert 85 MMCFD of gas presently being provided to the power sector to the industry with immediate effect. aThose who attended the meeting included Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi, Minister of Food and National Security Sikandar Bosan, Khurram Dastgir Minister for State for Commerce, Khawaja Asif Minister of Water and Power, Chairman Board of Investment Zubair Umer, Chairman FBR Tariq Bajwa and senior officials of various Ministries. The ECC decided that aircraft acquired by airlines on lease would be charged taxes on monthly basis instead of calculating on the total period of lease.

Copyright Business Recorder, 2013


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