Islamabad: The federal cabinet has approved a subsidy worth approximately PKR 25 billion for uninterrupted supply of gas to the export-oriented industrial sector of the country, a news source reported. The Petroleum Division sought the approval from federal cabinet to allow the supply of imported gas at subsidised rates to the industrial sector, including exporters of five zero-rated sectors and captive power plants. This a part of the government’s agenda to boost exports and foreign exchange.
The Petroleum Division has also asked Finance Division to create a subsidy head under the budget of the Petroleum Division. The subsidy would be provided to both zero-rated industry and its captive power units according to the directions of the Economic Coordination Committee of the Cabinet. The subsidy would be disbursed on a monthly basis on the verified billing provided by the Sui Northern Gas Pipeline Limited.
The Petroleum Division has also placed the limitation on captive power units to produce electricity only for self-consumption and not for selling it to the national grid.
