Hike in gas rates echoes in NA

State minister tells lower house can’t give ‘false hope’ to people

ISLAMABAD:

Minister of State for Petroleum Musadik Malik on Thursday told the National Assembly that the government could not give people false hope to the people and lay pipelines without the provision of gas.

The state minister informed the House, presided over by NA Speaker Raja Pervez Ashraf, that the Sui Northern Gas Pipelines Limited (SNGPL) was providing around 800 to 850 mmcfd gas to its consumers.

However, he added that the households’ demand for gas went up to 900 to 950 mmcfd in winters.

Malik told the House that the demand could not be met from local reserves and the national treasury could not afford billions of rupees in subsidies.

“If gas as per the requirement has to be met, its prices will have to be increased.”

Speaking on a call-attention notice, Malik told the House that the ban on new gas connections and CNG stations was imposed by the previous government.

He further said 25 to 26% of gas was being supplied to domestic consumers and 17% to industries.

The state minister added that 18% gas was being supplied to the fertiliser sector and 32% to power plants.

He informed the House that LNG cost four times more than domestic gas.

Malik predicted that by 2030, the country would consume 76% of LNG and 24% of domestic gas.

He maintained that 99% of gas provided to consumers was subsidised.

He added that the supply of LNG to domestic consumers was subsidised by 92% to 97%.

“A subsidy of Rs1.40 trillion on gas has been included in the circular debt.”

Read Local company signs LNG agreement with Chinese firm

GDA member Saira Bano proposed to the speaker to declare Committee Room No 2 as the House.

She added that there were no members in the House and the quorum was always incomplete.

“Members of the House are always moving around. At least members will sit in the committee room and remain in their seats,” she added.

“Now I am ashamed to point out the lack of quorum.”

 Speaking on other issues, Saira said Sindh was not receiving its share of gas.

The House also passed “The Export-Import Bank of Pakistan Bill, 2022” with a majority vote aimed at establishing a facility for the promotion of international trade.

The bill, moved by Minister of State for Finance and Revenue, Dr Aisha Ghaus Pasha, was passed by the lower house after clause by clause reading.

According to the statement of objectives and reasons, the government had taken several initiatives for the promotion and development of international trade as well as export oriented industries and import substitution in the national economic interest.

In continuation of its efforts and reforms, and in line with best international practices, the Pakistani government intends to establish the Export-Import Bank of Pakistan as the national export credit agency for the promotion, expansion and diversification of international trade.

It would help provide credit, guarantee and insurance products as well as ancillary services to exporters and importers, in the form of a statutory corporation that had the backing and support of the Pakistani government as is customary for export credit agencies to achieve their desired potential and objectives.

During the proceedings, the NA speaker announced with shock that MNA Aamir Liaquat had passed away. “The proceedings of the House should be stopped immediately,” he added.

The National Assembly session was adjourned till 5pm on Friday (today) over the demise of the MNA.

However, the National Assembly Secretariat later issued a notification that session would be held at 4pm.

(With input from APP)