The Federal Cabinet has approved subsidized gas and electricity price for five export sectors. Electricity and gas will be provided at 9 cents per kilowatt and $9 per MMBtu to these sectors, respectively.
The new prices for the regasified liquefied natural gas (RLNG) will be applicable from 1 July, whereas the electricity rate will be from 1 August till the end of FY23.
The approval from the cabinet was given on 5 August, however, a notification from the government is yet to be issued.
As proposed in the budget for the current fiscal year, the government has allocated a subsidy of Rs. 40 billion for gas and Rs. 20 billion for electricity.
In addition, the government has rejected the proposal of imposing indigenous gas tariffs for export and general industry of Rs. 1350 and Rs. 1550 per MMBtu, respectively.
Previously, the Economic Coordination Committee (ECC) of the cabinet had approved these regionally competitive energy rates for five export-oriented sectors during the FY23. According to the proposal, the subsidized rate would be provided to five export-based sectors to make the exports competitive in the international market.
