Economy

Ghiyas Paracha unveils plan to save foreign remittances by $ 2.13 billion dollar per annum

Ghiyas Paracha asks the government to allocate at least 50 MMCFD till the commencement of private LNG import for the CNG sector

Islamabad, June 07, 2022: Foreign remittance can be saved by approximately $2.1 billion dollar per annum while 50pc cut in public transport fares is also possible only if the government allocates at least 50 Million Cubic Feet per Day (MMCFD) gas to CNG sector till the commencement of Liquefied Natural Gas (LNG) import by the private sector for the CNG sector.

These revelations were made by Ghiyas Abdullah Paracha, Group Leader All Pakistan CNG Association (APCNGA) during a media briefing which was held on Tuesday in a private hotel.  

Speaking on the occasion, Ghiyas Abdullah Parach said he wanted to present this plan before the incumbent government to put the country’s economy on track, save the foreign exchange reserves by approximately upto $2.1 billion dollar annually under the head fuel import bill and to provide massive relief to the general public in the form of 50 percent cut in the public transport fares, creating job opportunities and minimizing the environment pollution by ensuring gigantic reduction in the carbon emissions with the use CNG as a fuel for motor vehicles. The government should allocate at least 100 MMCFD gas to the CNG sector till the commencement, said Ghiyas Abdullah Paracha.

”Revival/expansion of the CNG sector can generate thousands of new employment/job opportunities while the use of CNG as an alternative fuel for motor vehicles is equivalent to having an environmental benefit of 152.63 million trees per annum,” he added.

Ghiyas Abdullah Paracha also said that CNG is still cheaper than prevailing petrol price while its price will be cheaper than petrol price if the private sector is allowed to import LNG for the CNG sector of the country.

According to Ghiyas Paracha, at present the CNG is 10.4 pc cheaper than the prevailing price of gasoline in the country while the government is giving subsidies in petrol price and have fixed the petroleum levy (PL) and General Sales Tax (GST) at zero level. He also said if the government allows the private sector to import LNG for the CNG sector then approximately $2.135 billion (PKR 419.87 billion) can be saved with import of 300 Million Cubic Feet per Day (MMCFD) LNG to the country and CNG can be cheaper by 18.631% than the current gasoline price.

“General public can find significant 50 percent relief in fares with the use of CNG as a fuel in the public transport,” said Ghiyas Paracha.

Quoting finance minister Miftah Ismail’s target of reducing $ 22 billion dollar during next one year (FY 2022-23) out of the total deficit of $42 billion dollar, the APCNGA Group Leader said that the private sector can be helpful in meeting this target by approximately 10% only if it is allowed to bring LNG for the CNG sector and utilize the unused LNG terminal capacity.  

“We assure the government that positive change can be brought within no time if the private sector is given timely support and cooperation by the government,” said Ghiyas Paracha.

Speaking on the occasion, Ghiyas Abdullah Paracha also demanded the government to grant permission to use the surplus (private) terminal capacity of the LNG terminal and authorization for utilizing the unused contracted terminal regasification capacity of the LNG terminal. 

Similarly, all provincial chief secretaries/transport secretaries should be directed to encourage the owners/transporters to convert their public service vehicles to environment-friendly and cheaper CNG fuel and revise the gas allocation priority list in consultation with the stakeholders. Furthermore, support the CNG sector by giving a level playing field for business.

Sharing details of CNG Stations established across the country with an investment of approximately Rs 350 billion, Samir Gulzar, the Central Chairman of APCNGA told that total 2300 CNG Stations are established in the country and out of which 1100 CNG Stations are located in Punjab, 600 CNG Stations are situated in Sindh, 575 CNG Stations are operating in Balochistan province.

He said approximately 50pc of the total CNG Stations of Punjab Province have suspended their operation due to the non-availability of gas. He also said that Rs 150 billion investment so far made in developing the CNG kits has been facing serious danger due to the closure of CNG Stations and the non-availability of gas as a fuel for motor vehicles. He said direct and indirect employment in the CNG sector is 5.1 lakh. Total gas consumption required by the entire CNG sector is 400Million Cubic Feet per Day, said Ghiyas Abdullah Paracha.

It is pertinent to mention that senior leadership of APCNG has attended this media briefing as Fazal Muqeem, Coordinator Khyber Pakhtunkhwa, Khalid Latif Coordinator Hazara region, Samir Najmul, Vice Chairman Sindh, Sajjad Hyder, Coordinator Potiohar region and Chaudhry Salah ud Din, Member Executive Council of the APCNGA were present on the occasion.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button
Close