The Pakistan Economy Watch (PEW) has opposed a plan of Petroleum Minister to grab Rs 38 billion from national kitty to favour some business tycoons of fertiliser industry. In a statement issued here on Wednesday.
President Pakistan Economy Watch Dr Murtaza Mughal said Petroleum Ministry has sent a summary to the Economic Co-ordination Committee (ECC) of the cabinet for its approval to provide Rs 38 billion to fertiliser industry from revenue of the Gas Infrastructure Development Cess (GIDC) to subsidise the building and laying of gas transmission lines.
He said that GIDC levied with the objective of financing gas pipelines including Iran-Pakistan and Turkmenistan-Afghanistan-Pakistan-India projects but ministry of petroleum has planned to utilise the GIDC funds for fertiliser industry in order to favour some business tycoons.
Dr Murtaza urged the Chairman Economic Co-ordination Committee of the cabinet to not approve the said summary of petroleum ministry because it will create controversy as GIDC was imposed on gas consumers to fund gas pipeline projects of national importance not for subsidising gas transmission lines of fertiliser firms.
He further said that in order to generate revenue amounting to Rs 30 billion for initiating new gas import projects, the government has set GIDC rate up to Rs 300 per million British thermal unit (MMBTU) for current financial year 2012-13 lying under Region-I, comprising Khyber Pakhtunkhwa, Balochistan and Potohar (Rawalpindi, Islamabad and Gujar Khan), while Rs 200 per MMBTU has been set for Region-II Sindh and Punjab (excluding Potohar Region.-PR