Pakistan's export sector to continue getting concessional gas supply

Rate stands at $9 per million British thermal units

ISLAMABAD (Web Desk) – After a strong reaction by the textile industry, the coalition government extended the concessional tariff for May and June – thus reversing the decision made in late April and meeting a key demand.

So the five export-oriented sectors will now continue receiving gas supply at the rate of $9 per million British thermal units (mmBtu) for the remaining period of the current fiscal year.

In this connection, the Ministry of Energy says the Sui Northern Gas Pipelines Limited (SNGPL) will get a supplementary grant of Rs4 billion for this subsidy. Moreover, the SNGPL was also directed to ensure uninterrupted gas supply during the specified period.

The concessionary tariff was withdrawn on April 29 due to the complete exhaustion of the government-allocated subsidy for the supply of gas and re-gasified liquefied natural gas (RLNG) at a subsidised rate – a move which created resentment among the exporters.

At that time, the Pakistan Textile Exporters Association (PTEA) had termed it an anti-export move with an argument that the industry was already passing through difficult times with extreme cash flow crunch and high production cost immensely damaging the export pace and adversely impacting the textile value chain.