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 affect the 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,” fact finding tank stated.

PEW President Dr Murtaza Mughal said that expensive gas import contracts have been finalised at rates ranging between 16 to 18 per cent of Brent crude rates while gas purchased by the previous government was around 13pc.

He said that the former government purchased gas at a lower price despite a stable market while now it is being purchased at a higher cost when the market is down.

Dr Mughal noted that the cotton crop’s failure will cost the country billions of dollars. “Cotton production stands at five million bales against the target of fifteen million bales which will require import of ten million bales,” he added.

“Cotton import is necessary to keep the textile sector running, therefore, all the taxes and duties should be waived,” he maintained.

He said that the government should resolve issues confronting the cotton sector and discourage the trend among farmers of switching to sugarcane crops.

Dr Mughal said that licences should not be issued for new sugar mills as the production is already more than required and instead, the area under cultivation for cotton should be increased.

 

 

4 COMMENTS

  1. Alarming!! However the report doesn’t say what this government should have done n didn’t do ; to ensure bumper cotton crop. Needless to mention that Noon government, hand in gloves with sugar mafias Jahangir tareen being party, encouraged sugarcane production by encroaching the dedicated cotton belt . Locatus attack and unusual weather conditions added to cotton production short fall.

  2. Cotton growing and processing made Pakistan global leader in textile industry.
    Issuing of sugar mills permits in the cotton area by the former governments shifted cotton growers towards sugarcane. This can not be reversed so easily.
    PTI government had inherited a daunting task to revive the economy. I think current government is doing well in this situation.

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