LAHORE, Jan 19: Federal industries and production minister Jehangir Khan Tareen says the government is seriously considering a proposal to reduce power tariffs for industries.

Talking to reporters here at the PITAC on Wednesday, he sought to dispel reports that the government was increasing power and gas tariffs. "No, we are not enhancing power or gas tariffs," he said. Instead, he added, the government was working to bring down power tariffs, especially for the industry, in the long-term.

In reply to a question, the minister admitted that the government had failed to eliminate premium on new cars. "The problem is still there because of the huge gap between demand and supply. However, the car makers are enhancing their production capacities that would help overcome the problem of premium," he said.

He said the government was aware of the growing demand of gas in the country and had been working on a plan to import it for meeting the domestic and industrial requirements.

He said the government did also not plan to increase the gas tariffs. The current policy of gradual, periodical increase in gas tariff was formulated a few years back, he said and added the gas rates were being governed by that policy.

He also defended the government decision to import raw sugar, saying it was being done to safeguard the interests of consumers. He was hopeful that GDP would grow at seven per cent this year due to high growth rate in the manufacturing sector.

Answering reporters' questions on the occasion, Japanese ambassador Nobuaki Tanaka said his country's fiscal assistance to Pakistan would resume from next month.

He said initially Japan would provide $100 million project-tied assistance. He said several projects were being identified for the release of the aid, which was stopped by Tokyo after Pakistan tested nuclear device in May 1998.