Issue of RLNG supply to export-oriented industries: Federal govt accused of meting out ‘step-motherly treatment’ to Karachi

KARACHI: The PM must stop repeated discrimination with the export industries of Karachi on supply of RLNG and direct Petroleum Division to implement RLNG concessional tariff across Pakistan.

Export industries of Karachi which contribute 57% share in the national exports and 60% share in total revenue generation of the country has been continuously victimized by the federal government and discriminated with regards to supply of RLNG on concessional tariffs.

The export industries of Karachi are facing stepmotherly treatment and prejudice conduct by the federal government’s Petroleum Division whereby the Petroleum Division has created a divide among the export industries of Punjab and Sindh by giving preference to export industries of Punjab over the export industries of Sindh by offering the subsidized concessional RLNG tariff in Punjab province only.

Once again, like in the past, the federal government through its Petroleum Division has offered the revised RLNG tariff from $6.5 per MMBTU to $9 per MMBTU for captive power (self-power generation including cogeneration) use in export sectors and existing RLNG tariff of $6.5 per MMBTU will remain same for processing (industrial use) only in export sectors with effect from 15-11-2021 to 31-03-2022 vide its Notification dated 30th November, 2021 addressed to Sui Northern Gas Pipelines Ltd (SNGPL) which applies only to export industries of Punjab. Whereas on the other hand, the concessional tariff of RLNG whether $6.5 per MMBTU or $9 per MMBTU were never applied for export oriented industries in Karachi and no such implementation advice was sent to Sui Southern Gas Pipeline Limited (SSGCL) neither previous years nor this year.

The exporters of Karachi want to know what are the ulterior motives behind such discrimination done by Petroleum Division towards the export industries of Karachi? Whether the subsidy being given from taxes generated from all over the country is meant for Punjab province only? Karachi pays highest taxes but highest subsidy is given to Punjab Province.

Should not the subsidy given to export sector is uniformly applied across Pakistan including Karachi? When this sheer discrimination and dubious conduct on part of the Federal Government will be stopped? The export industries of Karachi strongly condemn this repeated discriminatory move to favour the export industries of Punjab only which has also created unhealthy competition among the export industries in Pakistan and elsewhere. To facilitate exporters is the policy of the federal government for Punjab only?

Copyright Business Recorder, 2021