Gas Tariffs, ECC Decisions, Pakistan Exports
The government has decided not to extend concessionary gas tariffs to zero-rated and export-oriented sectors, citing ongoing litigation and concerns that such a move could trigger wider demands for tariff reductions.
The issue was discussed in a recent meeting of the Economic Coordination Committee (ECC), where officials noted that reduced gas tariffs had already ended in 2023. The forum observed that reintroducing them at this stage could encourage other industries to file similar requests.
The Ministry of Commerce briefed the meeting that the case originated in 2019, when Ghani Glass filed a petition in the Lahore High Court, seeking inclusion in the list of industries entitled to concessionary gas or RLNG at Rs600 per mmBtu.
Currency Converter
The petition named several state entities, including the Petroleum Division, Oil and Gas Regulatory Authority, SNGPL, and the Federal Board of Revenue, as respondents.
In its directives, the High Court asked the federal government to examine whether the glass industry had been unfairly excluded from the export-oriented category and to consider extending tariff benefits retrospectively from 2015.
Read More: Pakistan Witnesses Two-Decade Low Oil and Gas Production
The court also emphasised the industry’s export potential and instructed the ECC to take a decision within 60 days.
Officials informed the ECC that the tariff concession was originally designed for sectors such as textiles, leather, sports goods, and surgical instruments under an SRO issued in 2011. The glass industry, they argued, had a limited export share of $15.9 million at that time, which did not justify inclusion.
The Commerce Division confirmed that it had challenged the High Court’s ruling in the Supreme Court in June 2025. In light of the pending appeal, the ECC directed the ministry to pursue the matter with the Attorney General’s office.
