July 25, 2022 (MLN): The Economic Coordination Committee (ECC) of the Cabinet on Monday approved the rate of Regassified Liquefied Natural Gas (RLNG) at $9 per mmbtu for all-inclusive to five export-oriented sectors for existing gas connections under Regionally Competitive Energy Rates (RCET) for FY23 to reduce the cost of manufacturing, a statement issued by Finance Division said.
To note, a subsidy cover of Rs40 billion for RLNG has been allocated under the Federal budget 2022-23 which will be reviewed on a quarterly basis.
Further, ECC recommended to the Federal Cabinet to raise the tariff of indigenous gas for export-oriented sectors to Rs1,350 per MMBTU and for the general industry at Rs1,550 per MMBTU.
The summary of regional competitive energy rates for export-oriented sectors was presented by the Ministry of Commerce.
It was submitted that in pursuance of the decisions of ECC dated 16th August 2021 and the Federal Cabinet dated 24th August 2021, the Government provided energy to the export-oriented sectors namely textile including jute, leather, carpet, surgical and sports goods at regionally competitive rates to reduce the cost of manufacturing and enhance exports.
Federal Minister for Finance and Revenue Mr. Miftah Ismail presided over the said meeting.
