ISLAMABAD: Pakistan’s economic managers have refused to grant a discounted gas tariff to the glass industry, rejecting a request submitted for providing tariff concessions to a major manufacturer.
The decision was taken by the Economic Coordination Committee (ECC) after reviewing a summary presented by the Ministry of Commerce in light of a Lahore High Court (LHC) judgment dated April 10, 2025. The ministry maintained that the relief earlier granted to Ghani Glass in the form of concessionary gas or re-gasified liquefied natural gas (RLNG) tariff was untenable.
The ECC was informed that, following its earlier directions, the Ministry of Commerce had consulted the Attorney General’s Office and the Ministry of Law and Justice. During these consultations, it was observed that while the LHC’s relief was substantive, its directives could be addressed through administrative measures without pursuing prolonged litigation. Consequently, a fresh summary was prepared for ECC consideration.
The ministry explained that concessionary gas tariffs were historically extended only to five export-oriented sectors—textiles, carpets, leather, sports goods and surgical instruments—due to their significant contribution to Pakistan’s export basket. The glass sector, however, has had an insignificant share in exports, both at the time of the original concessions and at present. Moreover, the concessionary tariff previously available to export-oriented sectors was withdrawn in 2023 and is no longer applicable to any industry.
In view of these factors, the Ministry of Commerce argued that Ghani Glass’s claim for concessionary gas or RLNG tariff, particularly with retrospective effect from 2019, could not be justified. After deliberations, the ECC approved the ministry’s proposal and formally rejected the request for discounted gas for the glass industry.
Story by Zafar Bhutta
