Approves supply of subsidised gas to five export-oriented sectors. PHOTO COURTESY: PTI
ISLAMABAD: The government announced on Tuesday that it would take decisive action regarding increase in electricity tariff in a bid to avoid Rs420 billion in annual subsidies, but at the same time approved provision of subsidised gas to five export-oriented sectors that would cost taxpayers Rs63.5 billion.
The Economic Coordination Committee (ECC) of the cabinet allowed supply of imported re-gasified liquefied natural gas (RLNG) to five Punjab-based industries at half the existing prices despite having no budgetary allocation.
The Rs63.5-billion subsidy for textile, carpet, leather, sports and surgical goods industries will be given by issuing a supplementary grant, according to officials of the finance ministry.
Federal Minister for Information Fawad Chaudhry addressed a press conference on Tuesday after the ECC meeting, which was chaired by Finance Minister Asad Umar.
ECC likely to approve up to 26% hike in power tariff
"We will soon take decisive steps on the electricity price increase," announced the information minister. But he said the ECC did not take decision on power tariff increase due to absence of Power Minister Omar Ayub. The power minister is in China.
"Naya Pakistan will emerge after eight to ten months when the government will clear the mess left behind by the PML-N government," said Chaudhry.
While making a case for electricity tariff increase, the minister said the current electricity sale price of Rs11.71 per unit had shot up due to the setting up of expensive power generation plants and net hydel profit payments to provinces by the last PML-N government.
Against the Rs11.71 end-consumer price, the cost of generation was earlier Rs12.90 per unit and the government was bearing a subsidy of Rs1.19 per unit, he added.
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