CNG suspention plan to inflict irrevocable harm on economy

Lahore: The Pakistan Economy Watch (PEW) on Friday said government’s plan to shutdown CNG filling stations for three months during winter is unfeasible in the prevailing circumstances as it an lead country to bankruptcy.

The unwise decision will create serious problems like exchange rate volatility, reduced Forex reserves, unemployment of millions, and runaway inflation, said Dr Murtaza Mughal, President of the PEW.

Talking to Farida Rashid, former president IWCCI and other women entrepreneurs, he said that the decision will primarily benefit oil import mafia and create problems for the troubled masses.

Dr Murtaza Mughal said that four millions vehicles using CNG would be forced to use costly imported fuel in case of CNG closure.

Government will have to import additional 40 million liters of fuel per day if a CNG-converted vehicle use 10 liters of petrol or diesel on average.

The import of around 3,60,0000000 additional fuel during three months of CNG closure will cost almost Rs 2.77 trillion or around 2.66 billion dollars in addition to normal oil imports, he said.

Dr Murtaza Mughal said that the present cost of imported petrol stands at Rs Rs 75.52 per litre while diesel is being imported at Rs 79.22 per liter which will have a direct impact of Rs 40 billion on the masses excluding inflation.

Speaking on the occasion, Farida Rashid said that masses are paying price of the failed policies of the former government, inaction of the present government, incompetent bureaucracy and foreign-funded NGOs that have a single point agenda of destabilizing Pakistan.

She said that Forex reserves are at unsatisfactory level of nine billion dollars and decisions that can bleed them will have very far-reaching consequences.