LAHORE: Prime Minister Shehbaz Sharif has allowed business people to engage in on-spot buying of 200MMCFD of liquefied natural gas (LNG) independently and utilise it to operate their industries seamlessly through the Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) system. The proposal put forth by Mr Sharif during a meeting with the business community associated with the textile exports industry in Faisalabad on Sunday has been met with acceptance and endorsement from the business community.

In addition, the government has granted permission to the petroleum ministry to continue supplying gas/RLNG (Re-gasified-LNG) to five export-oriented sectors at a concessional rate throughout the ongoing fiscal year 2023-24. The issuance of a notification in this regard has earned praise from the textile industry, as it is expected to give a significant boost to the country’s textile exports.

According to the notification, the SNGPL will raise invoices for the five export-oriented sectors based on the already approved mechanism of the Economic Coordination Committee (ECC) of the cabinet. The supply will comprise a blend of 50% indigenous gas and 50% RLNG during nine months (March to November), while 100% RLNG will be provided for the remaining three months of the year, without any delay in subsidy.

Speaking to Dawn, Khurram Mukhtar, patron-in-chief of the Pakistan Textile Exports Association, expressed the business community’s acceptance of the PM’s offer, considering it vital for the industry. He mentioned that during the meeting on Sunday, the prime minister offered them the opportunity to engage in on-spot buying of 200MMCFD gas, utilizing the SSGC and SNGPL system to run their industries round the clock. Mr Mukhtar added that they found this offer viable and endorsed it, but they intend to proceed only after receiving a proper mechanism from the government.

He clarified that the provision of gas at concessional rates to the five zero-rated export industries is not a new development, as it aligns with a cabinet decision made in September 2018. He emphasized that the continuation of the gas/RLNG provision to them on concessional rates has been made in line with the aforementioned 2018 decision.

“The PM, during meeting, also ordered the FBR to start clearing our sales tax refunds from next week,” he said.

Published in Dawn, July 24th, 2023