By Staff Reporter
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday increased RLNG rate to $9 per MMBTU from from $6.5 for five export-oriented industry from existing gas connections.
“A subsidy cover of Rs40 billion for RLNG has been allocated under Federal budget 2022-23 which will be reviewed on quarterly basis,” said a statement issued after the ECC meeting. The meeting was chaired by Finance Minister Miftah Ismail.
The ministry of Commerce presented a summary on regional competitive energy rates for export oriented sectors during financial year 2022-23.
“It was submitted that in pursuance of the decisions of ECC dated August 16, 2021 and the Federal Cabinet dated August 24, 2021, the government provided energy to the export oriented sectors namely Textile including Jute, Leather, Carpet, Surgical and Sports goods at regional competitive rates to reduce cost of manufacturing and enhance exports,” the statement said.
“The ECC after detailed discussion approved RLNG rate at US $9 per MMBTU, all inclusive, to five export oriented sectors.”
Further, the ECC recommended to the cabinet to raise the tariff of indigenous gas for export oriented sectors at Rs1,350 per MMBTU and for general industry at Rs1,550 per MMBTU.
“The ECC also approved the electricity rate at US cents 9 per kWh to five export oriented sectors from August 1, 2022.”
The approval was given subject to subsidy of Rs20 billion provided by finance division and quarterly review of the subsidy. Petroleum Division will provide a list of industrial units getting subsidized gas and electricity, within one month to the ECC for review.
The ECC also approved supplementary grant of Rs750 million for ministry of Information and Broadcasting for 75 years’ Independence Day celebrations. The meeting approved a proposal of ministry of Interior for payment of compensation/goodwill package from its own budget.
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