Trade: (Exchange rate erosion to hit LNG project: PBIF)


ISLAMABAD: Pakistan Businessmen and Intellectuals Forum (PBIF) on Monday said exchange rate erosion and demand by the state-run energy companies to increase price of imported gas by 28 percent may prove a fatal blow to the whole project.

Increased value of dollar will increase cost of the commodity and all the projects currently under different stages of completion, it said. The devaluation of currency will increase oil import bill to an extent that if will offset any gains by the export sector, said PBIF President and former provincial minister Mian Zahid Hussain.

In a statement issued here, he said that SNGPL, SSGC and PSO have asked the Ogra to increase price by 28 percent from 8.64 dollar per mmbtu to 11.20 dollars which is illegal.

He said PSO has not only asked to increase its margin but also demanded to play role of regulator in LNG deal without knowing its legality and the fact that transportation of gas is very economical as compare the imported liquid fuel.

Mian Zahid Hussain said that all of the state-run companies have ignored welfare of masses while focusing on welfare of shareholders which if allowed may inflict irreparable loss the LNG project.

LNG project has no future unless adhocism is abandoned, proper import arrangement is in place, elements after it are tackled and price reforms are initiated which is necessary to make it a success, he said.