Cabinet approves gas and electricity rates for five export sectors

August 12, 2022 (MLN): The Federal Cabinet on Friday, approved gas and electricity rates for five export sectors.

According to details, the cabinet meeting, chaired by Prime Minister Shehbaz Sharif has approved the supply of electricity at 9 cents per kWh and RLNG at $9 per MMBTU without disparity and all-inclusive to five export-oriented sectors namely textiles including jute, leather, carpet, surgical and sports goods across the country for one year.

RLNG rate will be effective from July 1, while the electricity rate will be from Aug 1 till the end of FY23.

To recall, the government would provide Rs60 billion subsidy on providing subsided electricity and gas to industries under federal budget FY23 to supply energy at concessionary tariff to five export-oriented sectors. Of the total Rs60bn, the government allocates Rs40bn as a subsidy amount for gas and Rs20bn for electricity.

Meanwhile, the indigenous gas tariffs for export and general industry of Rs1,350 and Rs1,550 per MMBtu respectively have not been approved.

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