Karachi: Senior Vice Chairman All Pakistan LPG Distributors Association and Convener of FPCCI’s Central Standing Committee on LNG Muhammad Ali Haider have said that the LPG sector in Pakistan is declining.
The present government should immediately announce the policy of LPG, protect the local industry and, as required, allow the import of LPG only to PSOs and SSGCs to get rid of the hoarding and import mafia.
Muhammad Ali Haider said that LPG is the only fuel in Pakistan that has infrastructure from Karachi to Gilgit. He expressed these views in an interview on Wednesday.
Mohammad Ali Haider said that as Pakistan’s domestic reserves are dwindling, LPG is the only fuel that can make up for this shortfall. LPG cylinders are used while the way we use these fuels relentlessly is the reason why we no longer have gas to generate electricity which is also affecting the industry. PG is forced to import.
He said that the import volume of LPG in Pakistan is 40% in summer and 60% in local gas, while in winter 60% is imported and 40% is local gas. In 2018, the government made a policy in which they had reduced sales tax on imports to 10% and also abolished RD, while 17% tax on local LPG production was levied for registered and 20% tax for unregistered. At the same time, PDL was also implemented.
(PDL) PSO and SSGC were given the responsibility of importing but these two companies were not imported due to their very low share. However, hoarders and people involved in illegal activities came to work and the result was that the trades fell. In the last three years, there has been no significant development in this sector as the local industry of Pakistan was on the verge of collapse by the previous government.
He said that we were repeatedly saying that LPG should be imported to Pakistan as per the demand and not more than that because Pakistan does not have much foreign exchange reserves but at that time our word was not heard. He said that the energy sector did not get as much attention as the previous government had neglected, and the concerned minister was changed four times in three years which affected the policy of this sector.
He said that we had four meetings at the level of secretary for the approval of the LPG policy but to date, the draft of LPG has not been approved. He said that the LPG sector has been repeatedly demanding policy announcements as no investment will come till the policy is announced. He said that the present government should give LPG policy so that the business of LPG could move in the right direction.
He said that after the budget, my meeting with Minister of State Musadik Malik is expected. He said that the rise in LPG prices could be stopped. He said that PSOs and SSGCs should come forward and abolish the PDL imposed on local LPG. And it will make things easier for the common man. He said that the government should sign a long-term contract for LPG and OGRA should play its role in the upcoming LPG policy to be documented.
