Cross-subsidy to hit exports

Textile millers have warned that cross-subsidies for the fertiliser sector in “ring-fenced” re-gasified liquefied natural gas (RLNG) prices will have a destructive impact on Pakistan’s exports, employment and economy. In a statement, the All Pakistan Textile Mills Association (Aptma) pointed out that the Ministry of Energy (Petroleum Division) and the Oil and Gas Regulatory Authority’s (Ogra) announcement of Rs50 billion cross-subsidy for the fertiliser sector in ring-fenced RLNG tariffs from June 2024 onwards would deal a blow to exports and the overall economy. The cross-subsidy includes the accrued differential of Rs27 billion from November 2023 through March 2024 and the monthly differential of Rs3.8 billion from April 2024 through September 2024. “This appears to have been deliberately implemented at a time when the public at large is preoccupied with the budget to ensure that it goes unnoticed,” remarked Aptma.