Planning Division seeks end to gas subsidy

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Our Correspondent
Islamabad

The Planning Division has asked the government to abolish subsidy on supply of gas to the export-oriented sector, which is already availing subsidy on provision of gas and electricity.

The Cabinet Committee on Energy (CCOE) has recently approved another package worth Rs26 billion for the industry by extending the Time of Use (ToU) tariff scheme.

The Petroleum Division also proposed that only the export-oriented industry should avail subsidy on gas supply.

Interestingly, the textile industry was not only availing the subsidy on gas supply, but it was also receiving electricity at discounted rates.

The Planning Division informed the Ministry of Energy that the export-oriented sector was already receiving gas and electricity at discounted rates and therefore, subsidy on supply of gas should be abolished.

In the zero-rated industry, textile is the major sector, which receives subsidy both on electricity and gas.

 

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