Special bodies planned to resolve GIDC payment issue

ISLAMABAD: The government on Friday decided to form two special committees to reach an amicable solution related to gas infrastructure development cess (GIDC) payment issue as industries demanded extension in timeline to settle the dues.

However, Adviser to the Prime Minister on Finance Hafeez Shaikh said the decision of the Supreme Court on GIDC has to be implemented.

“The issue will be resolved in the light of the decision of the court but the government will also support the industry in the post corona environment,” an official statement quoted Shaikh as saying during two separate meetings with the group of representatives from fertiliser industry and All Pakistan Textile Mills Association (Aptma).

Special Assistant to the Prime Minister on Petroleum Nadeem Baber, Minister for Industries Hammad Azhar and officials of the ministry of finance, petroleum division and the Federal Board of Revenue (FBR) attended the meeting.

Finance adviser said two separate subgroups will be formed to look into the issue of GIDC to propose two to three workable options for the amicable solution.

The first group will consist of representatives from the fertiliser industry, finance ministry, FBR and adviser petroleum. The second group will comprise representatives from Aptma, finance ministry, FBR and ministries of petroleum, commerce and for Industries. The minister for industries will lead the groups and present recommendations in the meeting to be held next week.

Representatives of textile mills and fertiliser industry requested the government to extend the time limit for the payment of GIDC to support liquidity position, according to the statement.

Last month, the Supreme Court directed businesses to pay Rs417 billion to the government under the GIDC verdict. The judgment allowed 24 monthly installments for the industry to pay back the outstanding amount, waived off the late payment surcharge and barred the government from further collection of the GIDC till spending the already collected amount.

Aptma earlier demanded the government to completely withdraw GIDC imposed on the textile industry. Textile industry is facing a serious situation because of the high cost of doing business and liquidity constraints, it said in a statement. Imposition of GIDC served to cripple the industry which is already burdened and has become uncompetitive compared to regional competitors in the absence of liquidity flow. The Council of All Pakistan Textile Associations criticised the government for misinterpreting the court verdict on GIDC, calling for a restrain in recovery of payments by utilities.