Federal government

KARACHI: The federal government has collected an amount of Rs81 billion from two fertilizers plants on account of Gas Infrastructure Development Cess (GIDC), sources in the industry confirmed here on Monday.

Fatima Fertilizers Plants and Engro Fertilizers have paid Rs81 billion to the government against the GIDC.

These fertilizer plants were collecting huge money from farmers but did not pay to the federal government while the federal government provided them gas at discounted rates.

The government had billed a total amount of Rs828 billion during this period under review. Out of the total billed and unbilled amount, the government had collected Rs305 billion only, the sources claimed.
The total outstanding amount against different companies stood at Rs524 billion as of June 2020 against different consumers.

The gas companies had billed Rs30 billion against fertilizer-fuel, and fertilizers plants deposited Rs14 billion during the period under study.
The government billed Rs211 billion against fertilizer feed (old), and fertilizer companies deposited Rs113 billion. The outstanding amount is Rs98 billion.

IPPs had paid Rs57 billion out of the total billed amount of Rs67 billion.
K-Electric had paid only Rs4 billion out of the total Rs44 billion billed amount. Outstanding amounted to Rs40 billion as of June 2020.
The gas companies had billed Rs75 billion against Gencos. They paid Rs48 billion with Rs28 billion outstanding. The general industry had paid Rs26 billion out of a total of Rs76 billion. Outstanding amounts to Rs51 billion.

The gas utilities had billed Rs135 billion against captive power plants. However, they paid only Rs19 billion. Outstanding stood at Rs116 billion.
Rather than making adjustments, the government had poured billions of rupees subsidies into these captive power plants during the last few years.

The author is a senior business reporter with bylines in leading newspapers and magazines across Pakistan.

LEAVE A REPLY

Please enter your comment!
Please enter your name here