Import of costly LNG to hit masses, double circular debt: PEW

ISLAMABAD: The Pakistan Economy Watch (PEW) on Sunday said that the government is importing costly gas which will hit masses and industrial sector. Expansive gas will add to the problems of masses and dejected the business community while it will double the volume of the circular debt in the gas sector, it said.
President PEW Dr. Murtaza Mughal said that expensive gas import contracts have been finalized at rates ranging between 16 to 18 percent of Brent crude while the gas purchased by the previous government was around 13 percent, said.He said that the former government purchased gas at a lower price despite stable market but now it is being purchased at a higher cost when the market is down which is amazing. Dr. Murtaza Mughal noted that the failure of the cotton crop will cost ten billion dollars to the country. The cotton production stands at five million bales against the target of fifteen million bales which will require import of ten million bales, he said. Cotton import is necessary to keep the textile sector running, therefore, all the taxes and duties should be waived, the President PEW maintained.He said that the government should resolve the issues confronting the cotton sector and discourage trend among farmers to switch to sugarcane crop. Dr. Murtaza Mughal said that licences should not be issued for new sugar mills as the production is already more than required and area under cultivation for cotton should be increased. He said that Pakistan used to import LNG at much lower prices during 2017 and 2018 than now despite the fact that now international prices are depressed which were normal a few years ago.INP/SB