Business

Bailout needed: CNG sector crumbling under slowdown

The CNG sector can only survive if the government allocates Rs100,000 monthly grant to every filling station

Our Correspondent April 07, 2020

PHOTO: FILE

ISLAMABAD: The All Pakistan CNG Association (APCNGA) on Monday said that the CNG sector is collapsing due to the economic slowdown and it requires an urgent bailout package from the government.

The government should work to save Rs450-billion worth investment in the CNG sector, which is also providing direct and indirect jobs to millions of people, said APCNGA Central Chairman Ghiyas Abdullah Paracha.

In a letter written to Prime Minister Imran Khan, the chairman said that reduction in oil price has provided relief to the masses but it has also minimised the difference in the prices of petrol and CNG, which has halted the sale of environmentally friendly fuel putting the industry at stake.

The CNG sector can only survive if the government allocates Rs100,000 monthly grant to every filling station for three months and announce other measures, he added. Paracha stated that withholding tax should be reduced from existing 4% to 2%.

Published in The Express Tribune, April 7^th, 2020.

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