The Senate Standing Committee on Petroleum advised the Petroleum Division to take aggressive measures to recoup over Rs. 449 billion in Gas Infrastructure Development Cess (GIDC) arrears from various industrial sectors as quickly as possible.
According to a national daily, Director-General (Gas) Abdul Rasheed Jhokio told the Senate body that the total GIDC payable by various sectors was Rs. 796 billion, of which the government received Rs. 347 billion while the remaining Rs. 449 billion was pending.
The Supreme Court of Pakistan (SCP) in August 2020 ordered all outstanding dues from consumer sectors, including fertilizer and textile, be recovered in 24 monthly installments. However, debts were not recovered after various sectors took stay orders through Sindh and Peshawar High Courts.
The Senate body questioned how high courts could withhold recoveries despite the apex court’s decision. Jhokio explained that while consumers did not challenge the SCP, they were successful in blocking payment of GIDC on various grounds. He stated that the total outstanding GIDC was now Rs. 449 billion.
Senator Abdul Qadir, who presided over the meeting, lamented the stay order and asked the Petroleum Division to consult private professional counselors to get them lifted. He noted that the fertilizer sector had to pay over Rs. 200 billion for GIDC but also received 18 percent of the total gas supply at a subsidized rate of $2-3 per unit, which didn’t make any sense.
Following the payment of earlier dues by all sectors, the remaining amounts payable by the fertilizer sector were Rs. 191 billion, Rs. 82 billion by CNG, Rs. 98 billion by industry, and Rs. 39 billion by K-Electric.
The committee also took notice of the Jandran, Saruna, and Jhal Magsi gas fields, discovered some 20-30 years ago, but were yet to be developed over bogus issues despite the outflow of valuable foreign currency.
The panel reiterated the urgent recovery of pending GIDC arrears and for the matter to be investigated properly to ensure that consumers are not overcharged.