KARACHI: Chairman of National Business Group Pakistan and President Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Hussain has said there should be no secrecy in the purchase of LNG as everything should be transparent.
He said that existing terminals should not be allowed to expand capacity as it will result in monopoly, hit competition and discourage investment.
Mian Zahid Hussain said that the government should allow new companies to invest in LNG projects as expansion in existing infrastructure will attract legal issues.
Talking to the business community, the veteran business leader said that expansion in the capacity of existing terminals will increase the price of gas resulting in increased cost of doing business, and costly electricity.
He said that cancellation of LNG cargoes and purchase of costliest gas in the history of the country has raised questions as it has wasted resources while the whole burden will be shifted on the masses.
The costly purchase will also increase gas sector circular debt that can reach Rs 200 billion by the end of the year, he said, adding that the LNG which could be purchased at four dollars per unit has been bought at fifteen dollars per unit which can translate into a loss of half a billion dollars to the national exchequer.
Mian Zahid Hussain suggested that there is limited capacity in the existing gas pipelines therefore the government should consider allowing the provision of gas to the industry in Karachi through bowsers which will also bring line losses to zero resulting in affordable gas.
Copyright Business Recorder, 2021