ISLAMABAD-The government on Friday constituted two sub-groups to look into the issues of Gas Infrastructure Development Cess (GIDC) to propose 2-3 workable options for the amicable solution after fertilizer and textiles sectors sought extension in time limit for payment of GIDC.

The representatives of fertilizers and textile sectors have requested the government to extend the time limit for the payment of GIDC so that both industries have a better liquidity position. Adviser to the Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh chaired two separate meetings here at the Finance Division with the group of representatives from fertilizer industry and All Pakistan Textile Mills Association (APTMA) to discuss the issue of Gas Infrastructure Development Cess, GIDC. 

Special Assistant to Prime Minister (SAPM) on Petroleum Nadeem Baber and Minister for Industries Hammad Azhar were also present during the meetings. Officials of the Ministry of Finance, Petroleum Division and Federal Board of Revenue (FBR) have also assisted during the meeting.

Lt. Gen. (r) Tariq Khan, Chairman, FMPAC and Chairman APTMA, Dr. Amanullah Kassim Machiyara in two separate meetings requested the Adviser Finance to extend the time limit for the payment of GIDC so that both industries have a better liquidity position.

After detailed deliberations, the chair decided that the issue will be resolved in the light of the decision of the court but the government will also support the industry in the post-Corona environment. The adviser directed that two separate sub-groups will be formed to look into the issue of GIDC to propose 2-3 workable options for the amicable solution. The first group shall have representatives from the fertilizer industry, Finance Ministry, FBR and Adviser Petroleum to be headed by the Minister for Industries. The second group shall have representatives from APTMA, Finance Ministry, FBR, Adviser Petroleum, Adviser to PM on Commerce and Minister for Industries. The Minister for Industries shall chair both groups and shall present recommendations in the meeting to be held next week.

The adviser discussed the issue in detail with the participants of the meeting and provided due opportunity to share their views supported by the relevant facts. The Advisor on Finance however underlined that decision of the honorable Supreme Court of Pakistan has to be implemented. SAPM on Petroleum and Minister for Industries also briefed the meeting.

In last month (August), the Supreme Court had ordered the federal government to recover about Rs417 billion GIDC dues from consumers in 24 installments. Later, in order to implement the apex court decision, the Petroleum Division has asked the heads of gas companies, and public sector exploration and production companies to initiate the recovery process with immediate effect. Petroleum Division had asked the managing directors of Sui Southern, Sui Northern, Pakistan Petroleum Limited, OGDCL and Mari Gas Companies to initiate the recovery of arrears amounting to Rs417 billion accrued up to July 31, 2020 in 24 installments from all defaulting consumers from August 1, 2020.

The government would recover Rs417 billion from the industrial and commercial sectors such as CNG, fertilizer, captive power industry, KEL, GENCOS, and IPPs as the said entities have already collected GIDC from the consumers but they did not pay to the government.