Pakistan

Consumers owe Rs 473 billion in GIDC arrears

Consumers GIDC

Various consumers owe approximately Rs 473 billion in arrears out of a total of Rs 790 billion on account of the Gas Infrastructure Development Cess (GIDC). 

During the meeting of the Senate Standing Committee on Petroleum and Natural resources, chaired by Muhammad Abdul Qadir on Monday, it was disclosed that various consumers owe about Rs 473 billion as arrears.

Petroleum Division told the meeting that out of Rs 790 billion on account of Gas Infrastructure Development Cess (GIDC) an amount of Rs 473 is still pending by different consumers.

The overall condition of foreign investment in the oil and gas sector of Pakistan was discussed in detail. The committee was informed that there were stay orders from the high courts over the recovery of Rs 356 billion and a waiver of Rs 50 billion was given to the CNG sector.  

The chairman asked the concerned departments to seek the support of the courts to assist in the recovery of the big amount of arrears. Another important issue about the misappropriation at Hascol Petroleum was discussed in the committee.  

Moreover, Senator Afnanullah Khan said that the company’s management had prepared Rs 7.4 billion worth of fake procurement orders and the CEO of the company had committed an Rs 8 billion fraud.

The company had misappropriation or misdeclarations of about Rs 75 billion. Petroleum Division, State Bank of Pakistan, Securities & Exchange Commission of Pakistan, Federal Investigation Agency, and other concerned departments were asked to examine this alleged financial misappropriation. 

Dr. Arshad Mahmood, Secretary Petroleum briefed the meeting about the current situation of the North-South Gas Pipeline Project which is being developed in collaboration with Russia.  

This 1,040 kilometer-long pipeline which is known as Pakistan Stream Gas Pipeline will be completed at a cost of around $2.5 billion. Here the share of Pakistan comes to 74% and the share of Russia is 26%.  

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