Monday, May 20, 2024
HomeEconomic PoliciesImport of Costly LNG to Hit Masses, Double Circular Debt

Import of Costly LNG to Hit Masses, Double Circular Debt

On Sunday, the Pakistan Economy Watch (PEW) said that the government is importing expensive gas that will impact the masses and the industry.

Expansive gas would add to the problems of the masses and deplete the business community while doubling the amount of the gas sector’s circular debt,” claimed the finding tank.

Dr Murtaza Mughal, President of PEW, said that costly gas import contracts were finalized at rates ranging from 16% to 18% of Brent crude rates, while gas purchased by the previous government was around 13%.

He said that, amid a stable economy, the former government bought gas at a cheaper price, while now it is being bought at a higher cost while the market is down.

Dr Mughal noted that the failure of the cotton crop would cost the country billions of dollars. “The production of cotton stands at five million bales against the goal of fifteen million bales, requiring the importation of 10 million bales,” he added.

“The importation of cotton is important to keep the textile sector going, so all taxes and duties should be waived,” he argued.

He said the government should fix issues facing the cotton sector and discourage farmers’ patterns to turn to sugarcane crops.

Dr Mughal claimed that licenses for new sugar mills should not be given, as production is already more than necessary and the area under cotton cultivation should be increased instead.



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