Pakistan Economy Watch (PEW) on Sunday said a move by the gas companies and Ogra to get limit of Unaccounted For Gas (UFG) losses enhanced by one hundred percent can hit the government efforts to resolve energy crisis.
Approval of twofold increase in the UFG limit will hit masses and economy hard, country will witness new wave of inflation and reflect negatively on plans to import LNG, it said.
Government has approved UFG limit at 7 percent which is one percent in Bangladesh, said Dr Murtaza Mughal, President PEW.
He said that Ogra and gas utilities should try to reduce rising theft, mismanagement and leakages to benefit themselves and their shareholders seeking increased profitability and abstain from burdening consumers.
Mughal said that UFG is a way to legalise theft which gas companies admit to have reached Rs 30 billion per annum while the actual amount is said to be around Rs 120 billion.
He said that the former chairman Ogra Taquir Sadiq illegally hiked UFG by 2 percent benefiting shareholders by Rs 50 billion and attracting attention of Supreme Court.
Now the gas stakeholders are pressurising Government to accept their unjust demands which were kept pending for long in the interest of masses, he informed. He asked the Prime Minister Nawaz Sharif to reject the latest summary forwarded by the Ogra to allow 100 percent raise in UFG ceiling.