Govt has yet to resolve issue of Rs100 bn GIDC against CNG sector, others

Senate body informed 450 textile mills in

Faisalabad not operating due to energy crisis

ISLAMABAD: The government is struggling to resolve the issue of Rs100 billion outstanding amount of Gas Infrastructure Development Cess (GIDC) against the Captive Power Plants (CPPs), Compressed Natural Gas (CNG) stations, general industry and others.

The Ministry of Petroleum and Ministry of Finance on Friday informed the Senate Special Committee on GIDC that was held here with the Senator Ilyas Bilour in the chair. 

While briefing the committee, Minister for Petroleum Shahid Khaqan Abbasi said that an amount of Rs51 billion was outstanding against CNG sector of which the sector has paid Rs19 billion, while Rs32 billion is still outstanding against them.

He said that during first round of talks with the CNG station owners, they offered government of paying Rs9 billion while the government asked them to pay Rs16 billion out of Rs 32 billion but no agreement was reached.

In second round of talks CNG association offered government of paying Rs10 billion while the government asked them to pay Rs13 billion. At present CNG stations in Sindh, Khyber Pakhtunkhwa (KP) and Balochistan were collecting GIDC from the end consumers but many of them are not submitting the amount in national kitty, he said.

The minister said that the government has not waved off the outstanding amount of any segment of the economy. Regarding development plans in the sector, Abbasi said that the government was laying gas related infrastructure worth Rs150 billion, added that in past 15 years no infrastructure was developed in the country.

The committee was also informed that over 450 textile mills in Faisalabad are not operating due to energy crisis or other reasons as a result thousands of people have become jobless.

Briefing the Committee Additional Secretary Ministry of Finance, Noor Ahmed said that as per experts there are two options to address the matter either a charted account firm issue a certificate about the payments and outstanding dues of a certain company on account of GIDC or Federal Board of Revenue has suggested that expense out of GIDC (those didn’t mention GIDC in balance sheet and those mentioned).

He added said the Oil and Gas Regulatory Authority included GIDC in the price of compressed natural gas (CNG) and all CNG outlets have collected it from end-consumers; therefore, the sector must have to pay the amount.

The representatives of All Pakistan CNG Association were also invited by the committee to have their point of view; they said that they were willing to pay the amount as decided in the second round of talks.

Uzma Adil, Chairperson Oil and gas Regulatory Authority (Ogra), giving her point of view, said that the best solution to end such issues is the de-regulation of the CNG prices and the authority has proposed the government to do so.

Secretary Ministry of Petroleum Arshid Mirza said that the government was also considering deregulating the CNG prices for which it has started consultations with different stakeholders and after getting their inputs it will prepare a summary in this connection and will submit with the Economic Coordination Committee of the Cabinet (ECC).