ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has denied any concessional tariff on gas/ RLNG to M/s Ghani Glass on the recommendations of Ministry of Commerce, sources close to Secretary Commerce told Business Recorder.
Sharing the details, sources said, Commerce Ministry on December 9, 2025 apprised the ECC that in pursuance of the decision of the Honourable Lahore High Court vide judgment of April 10, 2025, a Summary was presented to the ECC of the Cabinet on July 25, 2025 by the Ministry of Commerce.
The Ministry of Commerce argued that the relief granted to M/s Ghani Glass for tariff concessions on gas/RNLG was untenable. The ECC of the Cabinet in its decision of July 25, 2025 directed the Ministry of Commerce to approach the Attorney General’s Office to pursue the case expeditiously in the Supreme Court of Pakistan.
ln compliance with the decision of the ECC of the Cabinet, the Ministry of Commerce held meetings with the Office of the Attorney General of Pakistan and Ministry of Law and Justice to pursue the case expeditiously. During one of the meetings chaired by the Secretary Commerce, both the offices maintained that the relief granted by the Lahore High Court to M/s Ghani Glass was substantial and unlikely to be turned down completely by the Supreme Court.
They opined that the directions of the LHC could be fully implemented through administrative actions without resorting to the legal course. It was, therefore, agreed that a fresh summary explaining rationale for the scheme and reasons for not considering Ghani Glass may be submitted to the ECC of the Cabinet, for its considerations.
Lahore High Court, in its judgment of April 10, 2025 directed: (i) develop a uniform policy ensuring that only export-oriented industries receive tariff concessions rather than making sector-based classification that allow non-exporting industries to benefit unfairly; (ii) include the glass sector into the export-oriented industries and grant M/s Ghani Glass concessional tariffs in respect of price of Gas/RLNG;(iii) look into the possibility of granting M/s Ghani Glass concessionary gas tariffs retrospectively from the date of filing of the case (i.e., 2019), as was available to the five export-oriented sectors; and(iv) align gas tariffs with rates prevalent in comparable international markets for exporters including M/s Ghani Glass.
With regards to the above, Commerce Ministry submitted the following to the ECC: (i) FBR vide SRO fl25(l)l20ff, granted zero-rated sales tax status to five key sectors: textiles, carpets, leather, sports goods, and surgical instruments. In 2018, the Petroleum Division extended the concessionary RLNG/Gas tariff of USD 6,5/MI4BTU to the exporters of same sectors.
These sectors were later on, reclassified as “export-oriented sectors” by the Ministry of Commerce because of their substantial share in Pakistani export basket;(ii) share of the five export-oriented sectors (textiles, carpets, leather, sports goods, and surgical instruments) and glass in Pakistan’s total exports in 2011.
This amply reflects that share of the glass sector was insignificant and remains the same even today;(iii) concessionary energy tariffs which were being granted to the five export oriented sectors were discontinued in 2023, and are no longer available to any sector, at present; and (iv) efforts are being made to make the whole export industry competitive in the international market through various interventions including enhanced market access, tariffs rationalization and trade facilitation.
Commerce Ministry argued that claim made by M/S Ghani Glass for grant of concessionary tariffs on gas/RNLG is untenable and may, therefore, be regretted.
Commerce Ministry further stated that the directions of the Lahore High Court had been duly complied with as the matter was presented to the ECC of the Cabinet for its consideration within 60 days. Furthermore, CPLA filed by the Ministry of Commerce in the Supreme Court would become infructuous in due course, if the matter is disposed of by the ECC.
Copyright Business Recorder, 2025