ISLAMABAD: The Pakistan Economy Watch (PEW) on Sunday said faster than expected rise in the prices of locally produced and imported gas was damaging the masses and the economy.
“The price of local gas has been revised frequently while taxes have been slapped on import of LNG, which has reduced demand for the clean fuel,” it said.
Reduced demand and continued supply has increased pressure which can result in pipeline bursts and damage to the processing units, said PEW President Dr Murtaza Mughal. He said that power plants and industrial sector had reduced production resulting in loss of production, unemployment and increased load shedding.
Dr Murtaza Mughal said that LNG import contracts had been signed and import continued according to the schedule but buyers reduced purchases, creating problems for various departments.
“Rescheduling imports will be a costly option as $210 million are payable to LNG suppliers by August 5,” he said, adding that the local buyers of LNG had not paid the due amount of Rs 80 billion, adding to the problem.
He said that the government should reconsider the construction of more LNG terminals unless the situation improves.
