Karachi: The government has collected PkR 35-40 bn from Gas Infrastructure Development Cess (GIDC) during 9MFY12, which would be utilized for the construction of Iran-Pakistan (IP) gas pipeline, Turkmenistan-Afghanistan-Pakistan-India (TAPI) Pipeline Project, Liquefied Natural Gas (LNG) and other energy related projects.
According to Alfalah Securities Limited, the government had imposed a Cess on the supply of gas to various sectors of the economy from the start of CY12 with the intention of using it for development of infrastructure for imported gas projects. Iran-Pakistan (IP) pipeline was proposed to be laid into three steps by the government where the first step would be laying of gas pipelines from Iran-Pakistan Border to Gawadar, second step from Gawadar to Nawabshah and third from River Indus to other parts of the country.
The government had increased gas tariff for various industrial consumers in the range of 13.98% to 207% on account of the imposition of GIDC. The Fertilizer sector faced a maximum amount of cess after which its gas tariff was hiked by PkR 197/mmbtu. A cess of PkR 70/mmbtu was imposed on Independent Power Plants (IPPs) operating on gas, industrial sector by PkR 13/mmbtu and KESC by PkR 27/mmbtu.