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ECC approves uninterrupted supply of gas to export sector
Finance Minister Asad on Tuesday Umar chaired a meeting of the Economic Coordination Committee (ECC) of the federal cabinet in Islamabad.
The ECC approved a mechanism to ensure enhanced supply of domestic gas to the five zero-rated export-oriented sectors. It was further decided that these sectors would be given priority in the allocation of gas at par with the power sector.
These industries would be supplied Re-Gasified Liquefied Natural Gas (RLNG) during the three winter months (December-February) when the gas demand of domestic sector would be at its peak. During the remaining months (March-November), these industries would be supplied domestic gas and RLNG on a 50:50 basis.
The meeting also featured a briefing on the LNG terminal agreements signed during the previous government. The ECC decided that facts ascertained after discussion will be shared with the federal cabinet in its next meeting.
The committee lauded provincial governments in KP and Punjab on the presentation of prudent and forward-thinking budgets.
Comments (9) Closed
What about the PSM sector?
The committee lauded provincial governments in KP and Punjab on the presentation of prudent and forward-thinking budgets but no word about Sindh and Baluchistan budgets.
Positive gesture; decision reflects real intent to boost manufacturing sector. Hope that aftermaths will bring more FOREX into national exchequer with reducing unemployment.
Great to see a functional ECC which is meeting on a regular basis and making practical decisions which are likely to have a positive long term impact on our economy.
Uninterrupted gas supply with the depreciated rupee will bost our export which is good for local industry and economic growth. However this will not be enough to cover balance of payment gap.
Aitezaz Ahsen from PPP used to bash to PMLN openly but used to enjoy hefty LNG contracts in Punjab. These thieves are the ones who destroyed exports and badly damaged the economy. Shame on such characters!
Unless export sector shows a good growth, this circle of more debt and IMF loans would continue. PTI govt has to make a choice. Prioritise export sector at the expense of public sector or prioritise public sector at the export of export sector or use an even handed approach. For any economist this is no brainer. Prioritising export sector for a few years would reduce the deficit and more money would go towards public sector in the medium to long run. Asad Umar said in an interview that him and Khan don't want to leave their chairs for their children, so it does not bother them if they are thrown out of power for the sake of making right decisions. I do hope, he sticks to his words, and can make difficult decision, which would hurt public in the short run, but are needed for their long term welfare.
Sir Asad, We need structural reforms.
Wise decision!