PEW criticises government for preferring symbolic schemes

Lahore: The Pakistan Economy Watch on Sunday criticised government for preferring symbolic schemes over projects to contain energy scarcity terming it against the national interests.

Gas Infrastructure Development Cess (GIDC) was imposed to finance gas import projects despite resistance by consumers but it was misused to finance Metro and Orange Line Projects, it said.

Decision to collect GIDC from gas consumers benefitted bureaucracy while it took toll on fertiliser, textile and many other sectors resulting in high cost of business, high inflation, and reduced exports and agricultural output, said Dr. Murtaza Mughal, President PEW.

He said that Rs 183 billions collected for gas pipelines were utilised for monumental projects leaving government with no option to burden masses with Rs110 billion to finance LNG pipeline.

Making masses to pay for blunders of the government was illegal and against the decision of Ogra as the regulator was forced to remain silent over the violation which has raised serious legal and ethical questions.

Dr. Murtaza Mughal said that Ogra recently revised gas tariff which was pushed up for gas-based power plants which will be recovered from consumers while the regulator has planned to revise tariff for domestic and commercial consumers within three months.

This decision will make electricity costly hurting masses and exports as the per unit price in Pakistan is already around five cents more than the other regional countries.

He called upon the superior judiciary to look into the matter and provide justice to the masses.