Export-Oriented Sectors Saw Gas Prices Rise by 82%

Five export-oriented sectors have been approved to use Regasified Liquefied Natural Gas (RLNG) at a price of $9 per MMBTU by the Economic Coordination Committee (ECC).

After detailed discussion, the ECC approved RLNG price at US $9 per MMBTU, all inclusive for existing gas connections in five export oriented sectors across Pakistan.

Members of ECC

Members of the ECC including Commerce Minister Naveed Qamar and Industries & Production Minister Syed Murtaza Mehmood attended the meeting presided over by Finance Minister Miftah Ismail, as well as former prime minister Shahid Khaqan Abbasi, Defence Minister Khwaja Asif, Power Minister Khurram Dastgir Khan, and state ministers for finance and petroleum Dr Aisha Ghous Pasha and Musadik Malik.

A summary of regional competitive energy rates for export-oriented sectors presented by the Ministry of Commerce during the financial year 2022-23. According to the submission, in accordance with the decisions of the ECC dated 16th August 2021 and the Federal Cabinet dated 24th August 2021, the government provided energy to export-oriented sectors, such as textiles, leather, carpet, surgical instruments, and sports goods, at regionally competitive rates to reduce manufacturing costs and promote exports.

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For one year, the Energy Regulatory Commission, chaired by Finance Minister Miftah Ismail, approved the supply of electricity at 9 cents per kWh and RLNG at $9 per MMBTU without disparity and all inclusive to five export-oriented sectors: textiles including jute, leather, carpet, surgical and sports goods.

Industrial Gas will cost Rs 60 Billion

Providing subsidized electricity and gas to industries will cost the government Rs60 billion. Five export-oriented sectors will receive energy at concessionary rates under the federal budget 2022-23, according to the ministry of commerce.

A supplementary grant of Rs. 750 million was also approve by the ECC for the 75th Independence Day celebrations of the Ministry of Information and Broadcasting.

A proposal by the Ministry of Interior for payment of compensation/goodwill from its own budget also approved by the ECC.