Recently, approval for providing subsidised gas to exporters has been granted by the federal government for an year whereas electricity for three months aimed the exporters impotence to share any meaningful increase in export volumes even after having Rs106 billion which got ended in a fiscal year.
Approval granted by The Economic Coordination Committee (ECC) of the Cabinet for the supply of electricity at 9%/ unit whereas RLNG at $9/MMBTU to five export oriented sectors across the country.
It has raised the rates from $6.5 to $9 but still have to bear atleast Rs40 billion subsidy on imported gas.
The budget subsidy of Rs60 billion has been allotted where as The Ministry of Commerce presented a report summary for providing cheap gas & electricity costing approximately Rs129 billion for the fiscal year 2022-23.
After a discussion in detail, the ECC had approved the RLNG rate at $9 per MMBTU, inclusive of all five export oriented sectors all across Pakistan for current gas connections, as per Ministry of Finance. Applicable from August 1, 2022.
Subsidy would be reviewed on quarterly basis as it cover Rs 40 billion for RLNG approved under federal budget 2022-23. A list of industrial units getting subsidised gas and electricity within one month by the petroleum division to be reviewed by ECC.
Supplementary grant of Rs750 million was also alloted by ECC for the Ministry of Information and Broadcasting for the celebration of independence day on 75th anniversary.
Further directions has been provided to Federal Board of Revenue to make a proposal to increase taxes on tobacco for increasing revenue equal to Rs750 million.
No meaningful increase in export volumes and the recent gushed in exports were because of increase in goods prices.
The petroleum division has demanded Rs 11 billion for supplying imported RLNG to SSGCL consumers.
The space in the budget for additional supplementary was alloted because of commitments with the IMF.
