ISLAMABAD: The federal government has ended the Rs 80-billion subsidy on gas to five export sectors for FY 2022-23.

According to a notification issued on Saturday, Sui Northern Gas Pipelines Limited (SNGPL) has taken back the concessionary tariff to five export-oriented sectors.

“This is to inform that the subsidy allocated by GoP for the supply of Gas/RLNG at a subsidized rate to five export-oriented sectors for 2022-23, has been fully exhausted,” the notification read.

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Therefore, SNGPL is constrained to withdraw concessionary tariffs to the sectors with effect from May 1, 2023, it added.

The company also notified that the gas/RLNG to the industrial unit shall remain available at the Ogra-notified tariff. The SNGPL assured its cooperation and best services at all times to its users.

The government had ended the supply of RLNG to textile, sports, surgical, leather, and jute sectors at the rate of $9. Now, export sectors will have to pay an additional $4 per mmbtu on RNL. The federal government was paying more than Rs80 billion gas subsidy annually.

The federal government ended the series of concessions on the continuous demand of the IMF and other sectors.