Pakistan Businessmen and Intellectuals Forum (PBIF) President Mian Zahid Hussain said exchange rate erosion and demand by the state-run energy companies to increase price of imported gas by 28 percent may prove a fatal blow to the whole project. Increased value of dollar would increase cost of the commodity and all the projects currently under different stages of completion, therefore, it was necessary to bring it down to Rs 104, it said.
The devaluation of currency would increase oil import bill to an extent that would offset any gains by the export sector, said Mian Zahid. He said SNGPL, SSGC and PSO had asked Ogra to increase prices by 28 percent from 8.64 dollar per mmbtu to 11.20 dollars which was illegal. PSO has not only asked to increase its margin but also demanded to play role of regulator in LNG deal without knowing its legality and the fact that transportation of gas was very economical as compared to imported liquid fuel, he added.
Mian Zahid Hussain said all of the state-run companies had ignored welfare of masses while focusing on welfare of shareholders which if allowed might inflict irreparable loss to the LNG project. LNG project had no future unless adhocism was abandoned, proper import arrangement was in place, elements after it were tackled and price reforms were initiated which was necessary to make it a success, he said.
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