FCC suspends GIDC recovery from Saif, Kohat textile mills, restrains SNGPL

The Federal Constitutional Court (FCC) on Thursday suspended the recovery of Gas Infrastructure Development Cess (GIDC) under the GIDC Act, 2015, from Saif Textile Mills and Kohat Textile Mills, while restraining Sui Northern Gas Pipelines Limited (SNGPL) from taking any adverse action against the companies.

As per media reports, a two-judge bench comprising Justice Aamer Farooq and Justice Rozi Khan Barrech passed the order while hearing appeals filed by Saif Textile Mills, Kohat Textile Mills and Frontier Foundry Steel Mills against a judgment of the Peshawar High Court dated September 16, 2025.

During the hearing, counsel for the petitioners submitted that the companies had obtained natural gas connections from Sui Northern Gas Pipelines Limited for use in industrial processes and power generation. He said SNGPL had issued demand notices for recovery of GIDC arrears up to July 31, 2020, along with markup and late payment surcharge.

The petitioners argued that SNGPL had charged GIDC at the rate applicable to captive power consumers, instead of the lower rate applicable to industrial gas consumers, and continued to recover the disputed amounts through utility bills under the head of arrears. It was further contended that late payment surcharge was being imposed and compounded on the alleged dues, contrary to the provisions of the GIDC Act, 2015.

The counsel said the companies had approached the PHC in 2021, seeking exemption under section 8(2) of the Act on the ground that they had not passed on the burden of GIDC to their customers. Despite this, the high court had ruled against them, prompting the present appeals.

He maintained that the impugned GIDC demands were not applicable to the petitioners, were contrary to the Act and Supreme Court precedents, and could not be recovered through coercive measures such as disconnection or curtailment of gas supply.

After hearing the arguments, the bench suspended recovery of the disputed GIDC amounts and directed SNGPL not to take any adverse action against the petitioners during the pendency of the appeals.