The compressed natural gas (CNG) industry has sought continuity of exemption of taxes for potential investment in the country's fastest growing industry in the forthcoming Federal Budget 2004-05.
CNG Station Owners Association of Pakistan (CSOAP) Chairman Malik Khuda Baksh told Business Recorder here on Wednesday that presently, "We are negotiating various modalities with six companies of international repute based in the United States, Canada, New Zealand, Argentine, Italy and the United Kingdom under complete transfer of technology agreement," adding that "We have also planned to set up such manufacturing plant through potential foreign investors in the country."
He said, "After setting up of manufacturing plant for complete CNG equipment of international standards, we will invite a foreign reputed firm to inspect such facility."
This initiative has been taken to cater to the increasing demand of CNG equipment in the country and to capture potential regional market of over $ 8 billion in Bangladesh, Sri Lanka, Iran, Nepal, etc., he added.
To a question, he said, "Iran have planned to set up 500 CNG stations and convert 800,000 vehicles in three phases and hopefully, we can grab a potential share in this plan."
The idea is to set up our own manufacturing plants, including dispenser, storage facilities and CNG kits, he added.
Increase in CNG conversion in the country would help in reducing $ 1.5 billion of oil import bill and would provide cleaner environment, he added.
Presently, over 510 CNG stations have been set up with an investment of nearly $ 255 million and over 550,000 vehicles have so far been converted into CNG across the country, Malik said, adding that the industry also provides jobs to over 10,000 skilled people.
He urged the government to continue its CNG-friendly policy to further improve the working of the industry and attract more investment in this sector.
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