ISLAMABAD (January 04 2006): The federal government has directed provincial governments to phase out diesel engine buses, mini-buses, wagons and two-stroke rickshaws from major cities by the end of 2007.

In the first meeting of the Cabinet Committee on Replacement of Diesel by CNG here on Tuesday the Federal Minister for Petroleum and Natural Resources, Amanullah Khan Jadoon, who chaired it suggested that no permit be issued to diesel vehicles in the major cities of Karachi, Lahore, Faisalabad, Peshawar, Quetta, Islamabad/Rawalpindi from 2007.

Interest on loans to prospective buyers of CNG buses may be picked up by the government on public-private partnership basis and the State Bank of Pakistan may advise commercial banks to establish credit line for procurement of these vehicles and establishing their manufacturing units in Pakistan, the meeting was informed.

During phase out period CNG vehicles owners would be given incentives like lucrative routes, exemption from route tax, excise duty and registration fee.

Setting up of large CNG refuelling stations for buses should be at proper places ensuring supply of gas. Locally manufacture of CNG kits should be started within a year by involving private investment in order to cut down heavy spending on import of CNG kits.

Addressing the meeting federal minister emphasised of evolving collective approach to achieve the desired goal by involving all the stakeholders.

Government was focussing on making the country pollution free as early as possible and all-out efforts were being made in this regard, said Federal Minister for Petroleum and Natural Resources, Amanullah Khan Jadoon.

Director General HDIP, Hilal A Raza briefing the meeting said that Pakistan has become the leading CNG user in Asia and 3rd in the world.

CNG sector has attracted Rs 20 billion investment and Rs 2 billion is in pipeline providing 16,000 jobs to the people, he said, adding that 0.1 million vehicles would be converted to CNG annually reducing the dependence on petrol fuel.

The meeting was attended by the Federal Minister for Environment, Major Tahir Iqbal (Retd), Minister of State for Petroleum Mir Muhammad Naseer Mengal, provincial ministers for transport, deputy chairman planning commission, chairman CBR, secretary petroleum, advisor to PM on energy, representatives from ministry of finance, commerce, industries and production and Islamabad Capital Territory.

Copyright Business Recorder, 2006