Inflation was lowest ever in nawaz sharif era because they subsidized everything untill the CAD ran to 24b dollars(2b$ in zardari last year)
fence sitting they don’t want to open there eyes at all
www.thenews.com.pk
Thank you for the correction. If the money was spent by previous government, it will be wise for PTI government to tell the same to Supreme Court instead of covering up PMLN misuse of GIDC.
"However, the new situation poses the question as to what will the government reply to Supreme Court on utilization of GIDC as GoP has told the SC about presence of Rs 295 billion in the consolidated Account Number 1 and ironically the finance division has not refused the Russians during July 12-15 talks, the unavailability of money to spend on this project during current fiscal year.
The Supreme Court of Pakistan (SCP) through their Judgment dated August 13, 2020 dismissed petitioners’ (Fertilizers, Captive Power and others) appeals and upheld the levy and collection of GIDC in accordance with GIDC Act 2015. The government had given the undertaking to SC that it has by 13 August 2020, collected Rs 295 Billion under GIDC head and remaining amount of Rs400 billion is held up with various economic players due to litigation."
Pakistan Stream Gas Pipeline: Pakistan wants Russia to increase shareholding up to 49pc
ISLAMABAD: In a shocking development, Pakistan has asked Russia that it has no money to fully fund its 74 percent shareholding in the $3 billion project of Pakistan Steam Gas Pipeline and asked...
"In a report laid before the SC, the federal government stated that the companies listed in the first schedule of the GIDC Act 2015 were responsible for collecting the cess from consumers at the rates provided for in the law, to be deposited in the government treasury. Out of the GIDC collections, an amount of Rs279.5 billion during 2016 and an amount of Rs207.6bn during 2019 were utilised by Inter State Gas Systems Limited for equity injection in the TAPI project implementation company, the TAPI Pipeline Company Limited (TPCL)."
SC asks govt to explain why legislature not informed about GIDC cases
Details of Gas Development Infrastructure Cess have not been presented in parliament for last eight years.www.dawn.com
PTI has itself answered for PMLN utilization of GIDC for TAPI implementation. They will also have to answer for collections and utilization during their tenure.
As per Supreme Court judgement document, this Rs. 295 Billion is collected till 30-06-2019, and should be available with the government including the collected Rs. 25B during PTI tenure (2018-2019). This amount increased to Rs. 307.23Billion till 30-07-2020.
So, the PTI government should have these funds available for PSGP, UGS, TAPI and IP utilization today? Is my understanding on this correct or am I totally wrong? And if Pmln has utilized these funds inappropriately, why is PTI, bailing them out in Supreme Court?
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Previous years estimated collections (available on Finance Ministry website) to better understand collection history.
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All these facts won't help it. Supporters of PMLN would continue to believe this party ruled in interest of Pakistan and not in the interests of Sharif familyDear Niaz Sb,
I believe @Norwegian is trying to highlight those prevalent market conditions.
If we plot the price slope 13.37% on following graphs, we will conclude the price at which Qatar contract was signed in 2016 was much more higher than the prevailing market price for long term contract in the year 2016. The data source is IEA and Rystad.
https://aperc.or.jp/file/2020/9/1/C...on+for+supply+security+in+the+APEC+region.pdf
Apart from this, Pmln, also signed a contract with Gunvor in 2015 for supply of 12 cargoes per year starting from January 2016-Decenber 2020 at a price of 13.37%. How was a contract for 15 year term, for 5 x Gunvor volumes (60 cargoes/ year) could be justified in 2016 at 13.37%? Those market conditions, larger volumes and longer contract term, should have dictated a better price, which was much more reflective of market conditioned of 2016, on contrary, Pmln signed contract was more aligned to market conditions of 2014.
Everything was empty when PTI govt took after PMLN. I wonder why this anti Pakistan party hasn't been banned by now? Who is protecting them? Establishment?
Thank you for posting such an detailed post. The case is GOP against industries. It was professional on pti part to proceed as GOP and not on party lines.
The amount of equity injection in TAPI is in millions not billions. I was shocked so I rechecked the amount. (Dawn makes these mistakes way too often). It is a very meager amount. That makes it 0.1% of GIDC collected by plmn.
"Out of GIDC collection, an amount of Rs279,575,000 was released on May 3, 2016, and Rs207,665,001 on April 23, 2019, which was utilised by M/s Inter-State Gas System (ISGS) Limited for equity injection in TAPI project implementation company i.e. TAPI Pipelines Company Limited (TPCL)."
Only a fraction of GIDC money spent on projects, SC told
The apex court was informed that though the federal government has collected Rs295 billion in respect of Gas Infrastructure Development Cess (GIDC) in the last 11 years, but only a fraction of the collected amount has been spent on projects.www.brecorder.com
The 2015 ordinance by Plmn paved the way for access to funds for budgetary support.
"That the federal government needs access to this cash to meet its expenditure priorities as well as its budget deficit targets is something that stands to reason given a shortfall in the budgeted revenue" .
The GIDC 'opportunity'
The Gas Infrastructure Development Cess (GIDC) bill was tabled in the National Assembly by the Minister for Petroleum and Natural Resources, Shahid Khaqan Abbasi and passed by a majority with the Pakistan People's Party voting in its favour. Since both PMwww.brecorder.com
When PTI took over the money was never there.
Talking on Gas Infrastructure Development Cess (GIDC), Babar said that the previous government had deposited Rs 226 billion in GIDC, which was to be spent on laying the pipeline but this huge amount of Rs 226 billion was not spent by the previous government on laying the pipeline.
GIDC account was empty when PTI government came into power, informed SAPM, while demanding that former PM Shahid Abbasi has to answer about whereabouts of that money.
Babar, Abbasi exchange barbs over LNG purchase issue
Talking to a private channel, the SAPM said that the incumbent government is paying $527,000 per day because of ‘ill-conceived’ agreements of the previous government.www.brecorder.com
As far as PTI government is concerned supreme court ruling barred pti from using GIDC funds for anything else other than what it was intended for originally since 2020.
"The judgement allows the government to recover the outstanding amount from defaulters in two years but links future collections to the complete utilisation of the cess on projects for which the levy was imposed. Thus, the court order bars the government from using GIDC collection for any purpose other than gas infrastructure construction while also blocking its future income stream under it."
GIDC verdict
THE majority Supreme Court judgement in the Gas Infrastructure Development Cess case allowing the government to...www.dawn.com
If we calculate the amount I don't think that leaves PTI government in primary collection much to finance Russian pipeline project. The arrears are not recovered to date. PTI government did pass an ordinance to do out of court settlement on give and take basis but was withdrawn on public pressure. Thus the seeking of alternate financing through Russian banks for Pakistan part of project.
. I realized Dawn's mistake while posting following earlier.
Atleast thats what i would do
Hi,
Good catch. At least someone read all that
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The problem is, PTI can go to all the talk shows and lash out at whomever from PMLN, PMLN will only need to bring this report out, which PTI has itself submitted to the highest court in land. They have literally bailed them out and have accepted, the existence of all collected GIDC minus Rs. 0.483 Billion, whether it existed there or not, in the Federal Account, and is now part of the judgment. Why was this affair managed this way? Why didn't they tell the court truth, that PMLN has spent the collected amount on other stuff? Why didn't they submit detailed bank statement? They have themselves invited criticism and have only themselves to blame for it.
For PSGP, we will have to extend sovereign guarantees now, if we want Russians to invest, but the bigger issue will be dealing with Gazprom (a US sanctioned entity). Or find another interested party, CNPC, maybe? But they will also require sovereign guarantees.
