No work started on any GIDC project: SC

The Supreme Court on Thursday observed that the government had not initiated work on any of the projects of the Gas Infrastructure Development Cess (GIDC) case and whatever amount had been spent was utilised in setting up offices.

An apex court bench, headed by Justice Mushir Alam, heard the review petitions filed by private companies.

During the proceedings, the private firms’ counsel, Makhdoom Ali Khan, adopted the stance that until now the government had deposited Rs271 billion.

He said after Tapi, Northern and Southern gas pipeline projects and underground storage projects, the government would save more than Rs120 billion, which it could invest to start the Pak-Iran gas pipeline project. Therefore, he said, there was no purpose of depositing another Rs456 billion by the government.

Justice Faisal Arab remarked that so far not even a single rupee had been spent on the gas projects and that whatever amount had been spent was utilised in establishing offices.

Justice Alam observed that the court had restrained the government from recovering further amounts.

“It has been declared in the [court’s] decision that the government will first have to spend the money recovered.”

Justice Mansoor Ali Shah noted that the entire government projects were not realistic.

Another lawyer representing the private organisations argued that several industries had not received the gas infrastructure cess due to the stay extended on it.

He asked whether any industry, which had not received the cess, would pay it to the government.

He requested the court to constitute a commission to probe the issue of cess recovery.

Justice Arab remarked that obtaining a stay order by a company did not mean that the accrued amount was pardoned.

Lawyer Makdhoom Ali Khan pointed out that the government had not submitted any document on the initiation of new gas projects.

The court adjourned the hearing of the case till Monday.

The Supreme Court had on August 13 ordered the government to recover Rs457 billion outstanding GIDC in 24 monthly instalments against various industries out of Rs752 billion accrued since imposition of the cess. The government has already collected Rs295.4 billion.