Published On: Thu, Jan 16th, 2014

Govt planning to allow CNG kit and cylinder imports

Corporate News (Pakistan News) cng

Corporate News (Pakistan News)

The recent government of PML-N is looking at the possibility of overturning the ban placed on the import of CNG kits and cylinders by the previous government.

The implementation of this process could lead to devastation to the already damaged textile industry of Pakistan. The installation of CNG stations already proved destructive for the textile sector as the supply of gas was diverted towards cars. Thus posing a threat to the export oriented industries of the country.

According to sources in the cabinet, the Ministry of Petroleum and Natural Resources, led by Shahid Khaqan Abbasi, had already submitted a summary to the Economic Coordination Committee (ECC) proposing the reversing of the above mentioned ban. However it should also not be forgotten that the ban on import of CNG cylinders and kits was leading to a dangerous situation of the installation of sub standard local cylinders in public transport, hence proving to be a threat to public life and safety. Oil and Gas Regulatory Authority (OGRA) also pointed out this issue.

The ban imposed by the previous government mostly affected the Landi Renzo, a multinational company, which installed CNG cylinders/kits in locally manufactured vehicles. The company contributed Rs684 million in the shape of taxes from 2009 to 2012 to the government’s revenue. However the revenues of the company seriously declined after the imposition of the ban due to which they urged the government to review its decision.


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